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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 106th interim period, ended September 30, 2017.

Overview of Operating Results and Business Activities of Makita for the First Half of FY2018

Looking at the global economic situation during the first six-month period of the fiscal year ending March 31, 2018, developed countries’ economies gradually recovered due to steady improvement in employment and income situation, although there were uncertainties regarding the international political situation and policies. In emerging countries, the economy in general remained robust, since domestic demand and exports grew steadily in Southeast Asia.

Under these circumstance, on the development side, the Makita Group launched new products, mainly lithium-ion battery product lines, such as models with high power brushless motors featuring high power and speed equivalent to AC powered ones, and the industry’s first dust-collecting system that is wirelessly connected to cordless tools. On the production side, our overseas factories strove to reduce costs while raising local content ratios. To improve product quality stability and enhance productivity, we continued to introduce facilities that require less manpower in each factory worldwide. On the sales side, while trying to strengthen our community- and customer-based sales network, including the construction of new office buildings in New Zealand and Austria and the opening of a new branch in Warsaw, Poland, we focused on expanding the sales of cordless gardening and cleaning tools.

For the Interim Period, Net Sales Increased for the First Time in Two Periods, and Reached Record High

Our consolidated net sales for this period increased by 15.4% from the previous year to 230,951 million yen due to steady sales at home and abroad and depreciation of the yen compared with the same period the previous year. Operating income increased by 13.8% to 38,291 million yen (operating income ratio: 16.6%), owing to a rise in net sales, despite deterioration in the cost-of-sales ratio due to the impact of the exchange rate. Meanwhile, income before income taxes increased by 15.8% to 39,456 million yen (income before income taxes ratio: 17.1%) and net income attributable to Makita Corporation shareholders increased by 15.0% to 27,679 million yen (ratio of net income attributable to Makita Corporation shareholders: 12.0%).

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 2018. 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 2017