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Message to Shareholders


Munetoshi Goto Masahiko Goto
President,   Chairman,
Representative Director   Representative Director

We are pleased to present the outline of operation and financial results for Makita's 107th interim period, ended September 30, 2018.


■Overview of Operating Results and Business Activities of Makita for the First Half of FY2019

Looking at the global economic situation during the first six-month period the fiscal year ending March 31, 2019, there were rising uncertainties, such as escalating tensions between the U.S. and China over trade and a decline in emerging-country currencies. However, the economy gradually expanded, supported by a strong employment and income situation and robust business performance in developed countries, principally the U.S.

Under these circumstances on the development side, the Makita Group launched new products, mainly lithium-ion battery product lines, such as cordless models with brushless motors featuring work efficiency higher than AC-powered ones. Moreover, we established a technology development base in South Korea to enhance the capability to develop electrical technologies and accelerate development speed. On the production side, we continued to implement measures including the promotion of multi-polarized global production, cost reduction through local procurement of components, and introduction of labor-saving or unmanned facilities. On the sales side, we focused on expanding the sales of lithium-ion battery products, such as cordless gardening equipment. Furthermore, we worked hard to strengthen our community- and customer-based sales network by increasing sales and after-sales service bases.

■For the Interim Period, Revenue Increased and Reached Record High For Two Consecutive Periods.

Our consolidated revenue for this period increased by 5.1% to 242,796 million yen compared to the same period of the previous year due to robust sales both in Japan and overseas, although the value of overseas revenue translated into yen was eroded by a fall in emerging-country currencies. Operating profit increased by 5.6% to 40,064 million yen (operating profit ratio: 16.5%) owing to a rise in revenue, although selling, general and administrative expenses increased. Profit before income taxes increased by 8.4% to 42,269 million yen (profit before income taxes ratio: 17.4%) and profit attributable to owners of the parent increased by 8.5% to 29,679 million yen (ratio of profit attributable to owners of the parent: 12.2%).

■The Interim Cash Dividends of 10 Yen Per Share

Makita's basic policy on the distribution of profits is to maintain a dividend payout ratio of at least 30%, with a lower limit on annual cash dividends of 10 yen per share. For the interim period under review, Makita declared to pay a dividend of 10 yen per share.

Based on its dividend policy, Makita's board of directors will decide on proposals for the dividend for the end of the fiscal year at their meeting to approve the financial statements after they are finalized near the end of April 2019. Their proposals will be presented for discussion and final approval at the Ordinary General Meeting of Shareholders.


We look forward to the continuing support and cooperation of our shareholders.

 

November 2018