UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of October, 2011

Commission file number 0-12602

MAKITA CORPORATION

 

(Translation of registrant’s name into English)

3-11-8, Sumiyoshi-cho, Anjo City, Aichi Prefecture, Japan

 

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  þ        Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(1):  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7):  ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨                     No  þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-        

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Date: October 31, 2011

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Makita Corporation

Consolidated Financial Results

for the six months

ended September 30, 2011

(U.S. GAAP Financial Information)

(English translation of “KESSAN TANSHIN”

originally issued in Japanese)

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CONSOLIDATED FINANCIAL RESULTS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2011 (Unaudited)

October 31, 2011

Makita Corporation

Stock code: 6586

URL: http://www.makita.co.jp/

Masahiko Goto, President, Representative Director & CEO

1. Summary operating results of the six months ended September 30, 2011 (From April 1, 2011 to September 30, 2011)

(1) CONSOLIDATED OPERATING RESULTS

		Yen (millions)
		For the six months ended     September 30,  2010										For the six months ended     September  30, 2011
						%										%
Net sales			133,807				12.7						153,036				14.4
Operating income			21,843				46.9						26,953				23.4
Income before income taxes			21,751				25.9						24,514				12.7
Net income attributable to Makita Corporation			15,122				42.4						17,104				13.1
Comprehensive income (loss)			(1,413)				—						(1,556)				—
		Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			109.77										124.16

Notes:

1.

Amounts of less than one million yen have been rounded.

2.

The table above shows the changes in the percentage ratio of net sales, operating income, income before income taxes, net income attributable to Makita Corporation, and comprehensive income (loss) against the corresponding period of the previous year.

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

		Yen (millions)
		As of March 31, 2011						As of September 30, 2011
Total assets			372,507						359,691
Total equity			309,678						300,924
Total Makita Corporation shareholders’ equity			307,149						298,684
Total Makita Corporation shareholders’ equity ratio to total assets (%)			82.5%						83.0%
		Yen
Total Makita Corporation shareholders’ equity per share			2,229.63						2,168.28
2. Dividend Information
		Yen
		For the year ended March 31, 2011						For the year ending March 31, 2012
Cash dividend per share:
Interim			15.00						15.00
Year-end			51.00						(Note)
Total			66.00						(Note)

Notes:

1.

The forecast for cash dividend announced on April 28, 2011 has not been revised.

2.

The projected amount of dividends for the year ending March 31, 2012 has not been determined yet. For further details, refer to “Explanation regarding proper use of business forecasts, and other significant matters”.

 

		1
English translation of “KESSAN TANSHIN” originally issued in Japanese

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3. Consolidated Financial Performance Forecast for the year ending March 31, 2012 (From April 1, 2011 to March 31, 2012)

		Yen (millions)
		For the year ending March 31, 2012
							%
Net sales			285,000				4.5
Operating income			44,500				6.2
Income before income taxes			41,900				(1.9	)
Net income attributable to Makita Corporation			29,100				(2.7	)
		Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			211.25

Note:

The consolidated financial forecast for the year ending March 31, 2012 has been revised.

4. Other

(Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 5.)

(1)	Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the quarter): None

 

(2)	Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements: Yes

 

(3)	Changes in accounting principles: None

 

(4)	Number of shares outstanding (common stock)

Information regarding quarterly review

This consolidated financial results report is not subject to a quarterly review stipulated under the Financial Instruments and Exchange Act. As of the release date of this document, the quarterly review under the Financial Instruments and Exchange Act has not been completed.

Explanation regarding proper use of business forecasts, and other significant matters

Regarding the assumptions for the forecasts and other matters, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative Information on Consolidated Financial Performance Forecast” on page 4. The financial forecasts given above are based on information as available at the present time, and include potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts provided above.

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. However, in the event special circumstances arise, computation of the amount of dividends will be based on consolidated net income attributable to Makita Corporation after certain adjustments for such special circumstances.

The Board of Directors plans to meet in April 2012 for a report on earnings for the year ending March 31, 2012. At the time, in accordance with the basic policy regarding profit distribution mentioned above, the Board of Directors plans to propose a dividend equivalent to at least 30% of net income attributable to Makita Corporation. The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2012.

The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated net income attributable to Makita Corporation per share (after adjustments for special circumstances) and multiplied by 100.

 

		2
English translation of “KESSAN TANSHIN” originally issued in Japanese

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[Qualitative Information and Financial Statements]

1. Qualitative Information on Consolidated Operating Results

During the six months (the “period”) ended September 30, 2011, the aggravation of fiscal problems and financial instabilities in Europe brought a downturn in South European economies, gradually decelerating even German and U.K. economies which had until then shown a recovery trend. In the United States, individual consumption and capital investments have been slow, adding to such problems as the uncertain employment situation and sluggish housing market. In Asia and Central and South America, economy was in a favorable condition on the whole, while there were signs of economic slowdown caused by austerity measures taken in China and Brazil. In Japan, business outlook remains uncertain with the March 11 earthquake inflicting serious damage on economic activities.

Against the backdrop of this economic climate, demand for power tools showed a robust increase in emerging countries that enjoy continuous economic growth, while demand rose only moderately in such developed economies as Europe and the United States where power tool markets have already matured. Meanwhile, Japan experienced an increased demand resulting from post-quake restoration and reconstruction efforts.

Under these circumstances, in development side, Makita continuously expanded its product lines, including power tools, rechargeable tools and outdoor power equipment (OPE) through the development of smaller and lighter tools or tools with lower noise and vibration. In production side, we strengthened our quality control system to continuously produce high-quality brands, while expanding our overseas production especially at our plant in China. In sales side, we established our 48th overseas subsidiary in Slovenia to strengthen our sales and service structures in the Balkan states. Through these steps, we strove to maintain and improve our sales and after-sales services proximate to the customers, which had already been our forte.

Meanwhile, to further strengthen our development structure for outdoor power equipment (OPE), especially engine-loaded products, we established an OPE R&D Center on the premises of Makita’s Nisshin Office at Nisshin City in Aichi Prefecture in October this year. In view of the environmental preservation, engine-loaded products need technological improvements that reduce such products’ emissions, noise and energy consumption. To achieve these improvements, Makita strives to increase its development capacity and efficiency through the establishment of the OPE R&D Center equipped with facilities for practical tests.

Our consolidated net sales for this period increased by 14.4% to 153,036 million yen compared to the same period of the previous year. This was because of the rollout of attractive new products as well as the success in expanding sales by making the most of our sales and service structures that have always been our strong point, although our overseas sales decreased in value due to the appreciation of the yen against other currencies, combined with the sluggish housing market in such developed countries. In terms of incomes, our operating income increased by 23.4% from the previous year to 26,953 million yen (operating income ratio 17.6%) because of an increase in sales. Meanwhile, income before income taxes showed a modest increase of 12.7% from the previous year to 24,514 million yen (income before income taxes ratio 16.0%) and net income attributable to Makita Corporation increased only by 13.1% from the previous year to 17,104 million yen (net income attributable to Makita Corporation ratio 11.2%) because of exchange loss amounting to 2,465 million yen resulting from drastic exchange rate fluctuations and because of realized losses on securities amounting to 602 million yen resulting from a fall in stock prices.

Net sales by region are as follows:

Net sales in Japan increased by 13.9% to 25,263 million yen compared to the same period of the previous year because of an increased demand resulting from post-quake restoration and reconstruction efforts, in addition to strong sales of rechargeable tools such as impact drivers as well as compact hammer drills incorporating Makita’s proprietary low-vibration (AVT) mechanism.

Net sales in Europe increased by 13.3% to 64,604 million yen due to active demand in Russia, even though the increase of demand slowed down in such western European countries as Germany.

Net sales in North America increased by 7.3% to 19,822 million yen as strong demand continued for rechargeable power tools mounted with lithium-ion batteries, even though sales suffered a substantial decline in value due to the yen’s appreciation and a slowdown in the U.S. housing market.

Net sales in Asia increased by 24.1% to 14,136 million yen as strong demand continued in such Southeast Asian countries as Thailand and Indonesia.

 

		3
English translation of “KESSAN TANSHIN” originally issued in Japanese

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Net sales in the Middle East and Africa decreased by 3.0% to 7,007 million yen as economic activities stagnated due to the political instabilities in some parts of these regions. Meanwhile, net sales in Central and South America increased by 31.1% to 12,618 million yen and net sales in Oceania increased by 21.5% to 9,586 million yen. These last two regions have shown a substantial increase in sales because their economies have been in good condition.

2. Qualitative Information on Consolidated Financial Position

Total assets as of September 30, 2011 decreased by 12,816 million yen to 359,691 million yen compared to the balance as of March 31, 2011. The main reason is a decrease in value of the assets held by Makita’s overseas subsidiaries due to the yen’s appreciation and a decrease in “Cash and cash equivalents”, “Time deposits”, and “Short-term investments” that resulted from payment of dividends and other expenditures, even though “Inventories” increased thanks to production increase.

Total liabilities as of September 30, 2011 decreased by 4,062 million yen to 58,767 million yen compared to the balance as of March 31, 2011. This decrease was mainly due to the decrease in “Trade notes and accounts payable”.

Total equity as of September 30, 2011 decreased by 8,754 million yen to 300,924 million yen compared to the balance as of March 31, 2011. This decrease was mainly attributable to the increase in “Accumulated other comprehensive loss” due to a change in foreign currency translation adjustment because of the stronger yen against other currencies compared with that as of March 31, 2011.

3. Qualitative Information on Consolidated Financial Performance Forecast

While demand for power tools is expected to remain robust, the yen’s value against major currencies is predicted to trend higher than the Company’s projections released on April 28, 2011. In view of these circumstances, we revised our previous performance forecasts as follows:

Revised Forecasts for consolidated performance during the fiscal 2012 (From April 1, 2011 to March 31, 2012)

		Yen (millions)																Yen
		Net sales				Operating income				Income before income taxes				Net income attributable to Makita Corporation				Earning per share (Basic) Net income attributable to Makita Corporation common shareholders
Outlook announced previously (A)			285,000				45,000				45,800				31,900				231.57
Revised forecasts (B)			285,000				44,500				41,900				29,100				211.25
Changes (B-A)			—				(500	)			(3,900	)			(2,800	)			—
Percentage revision			—				(1.1%	)			(8.5%	)			(8.8%	)			—
Actual results for the previous year ended March 31, 2011			272,630				41,909				42,730				29,905				217.08

The above forecasts are based on the assumption of exchange rates of 77 yen to the U.S. dollar and 102 yen to the euro for the six months period ending March 31, 2012.

The above forecasts are based on the assumption of exchange rates of 78 yen to the U.S. dollar and 108 yen to the euro for the year ending March 31, 2012.

(Reference) Our previous exchange rates that we announced on April 28, 2011 were 83 yen to the U.S. dollar and 118 yen to the euro.

The above forecasts are based on information as available at the present time, and include potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts provided above.

 

		4
English translation of “KESSAN TANSHIN” originally issued in Japanese

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4. Other

(1)	Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the quarter): None

 

(2)	Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements:

With regard to the income tax expenses, the Company computes interim income tax expense by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes for the reporting period.

 

(3)	Changes in accounting principles: None

 

		5
English translation of “KESSAN TANSHIN” originally issued in Japanese

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5. Consolidated Financial Statements (Unaudited)

(1) Consolidated Balance Sheets

		Yen (millions)
		As of March 31, 2011								As of September 30, 2011
		Composition ratio								Composition ratio
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			51,833								48,644
Time deposits			15,719								6,872
Short-term investments			33,555								29,701
Trade receivables-
Notes			1,914								1,609
Accounts			46,785								45,894
Less- Allowance for doubtful receivables			(935	)							(829	)
Inventories			110,595								114,622
Deferred income taxes			6,039								6,045
Prepaid expenses and other current assets			9,990								9,908
Total current assets			275,495				74.0%				262,466				73.0%
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			20,065								19,748
Buildings and improvements			72,201								70,710
Machinery and equipment			73,195								72,056
Construction in progress			1,369								2,963
			166,830								165,477
Less- Accumulated depreciation			(94,792	)							(94,039	)
Total net property, plant and equipment			72,038				19.3%				71,438				19.9%
INVESTMENTS AND OTHER ASSETS:
Investments			17,069								17,185
Goodwill			721								721
Other intangible assets, net			4,595								4,529
Deferred income taxes			1,403								1,689
Other assets			1,186								1,663
Total investments and other assets			24,974				6.7%				25,787				7.1%
Total assets			372,507				100.0%				359,691				100.0%

 

		6
English translation of “KESSAN TANSHIN” originally issued in Japanese

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		Yen (millions)
		As of March 31, 2011								As of September 30, 2011
		Composition ratio								Composition ratio
LIABILITIES
CURRENT LIABILITIES:
Short-term borrowings			868								2,558
Trade notes and accounts payable			25,691								20,890
Other payables			4,386								5,831
Accrued expenses			6,125								5,613
Accrued payroll			7,543								7,472
Income taxes payable			4,317								4,643
Deferred income taxes			112								129
Other current liabilities			7,183								5,511
Total current liabilities			56,225				15.1%				52,647				14.6%
LONG-TERM LIABILITIES:
Long-term indebtedness			19								15
Accrued retirement and termination benefits			3,128								2,819
Deferred income taxes			746								710
Other liabilities			2,711								2,576
Total long-term liabilities			6,604				1.8%				6,120				1.7%
Total liabilities			62,829				16.9%				58,767				16.3%
EQUITY
MAKITA CORPORATION SHAREHOLDERS’
EQUITY:
Common stock			23,805								23,805
Additional paid-in capital			45,420								45,421
Legal reserve			5,669								5,669
Retained earnings			293,532								303,611
Accumulated other comprehensive income (loss)			(54,824	)							(73,345	)
Treasury stock, at cost			(6,453	)							(6,477	)
Total Makita Corporation shareholders’ equity			307,149				82.5%				298,684				83.0%
NONCONTROLLING INTEREST			2,529				0.6%				2,240				0.7%
Total equity			309,678				83.1%				300,924				83.7%
Total liabilities and equity			372,507				100.0%				359,691				100.0%

 

		As of March 31, 2011						As of September 30, 2011
Total number of shares authorized			496,000,000						496,000,000
Number of shares issued			140,008,760						140,008,760
Number of shares issued (excluding treasury stock)			137,757,699						137,751,368
Number of treasury stock			2,251,061						2,257,392

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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(2) Consolidated Statements of Income

 

		Yen (millions)
		For the six months ended September 30, 2010								For the six months ended September 30, 2011
		Composition ratio								Composition ratio
NET SALES			133,807				100.0%				153,036				100.0%
Cost of sales			81,270				60.7%				92,701				60.6%
GROSS PROFIT			52,537				39.3%				60,335				39.4%
Selling, general, administrative and other, net			30,694				23.0%				33,382				21.8%
OPERATING INCOME			21,843				16.3%				26,953				17.6%
OTHER INCOME (EXPENSES):
Interest and dividend income			633								723
Interest expense			(18	)							(95	)
Exchange gains (losses) on foreign currency transactions, net			(811	)							(2,465	)
Realized gains (losses) on securities, net			104								(602	)
Total			(92)				(0.0)%				(2,439	)			(1.6)%
INCOME BEFORE INCOME TAXES			21,751				16.3%				24,514				16.0%
PROVISION FOR INCOME TAXES:
Current			5,452								7,459
Deferred			981								(189	)
Total			6,433				4.9%				7,270				4.7%
NET INCOME			15,318				11.4%				17,244				11.3%
Less: Net income attributable to the noncontrolling interest			(196	)			(0.1)%				(140	)			(0.1)%
NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION			15,122				11.3%				17,104				11.2%

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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(3) Consolidated Statements of Changes in Equity & Comprehensive Income (Loss)

 

Yen (millions)
For the six months ended September 30, 2010
		Makita Corporation shareholders’ equity																								Non- controlling interest				Total				Comprehensive income (Loss)
		Common stock				Additional paid-in capital				Legal reserve				Retained earnings				Accumulated other comprehensive income (loss)				Treasury stock												Net income attributable to Makita Corporation				Net income attributable to the non-controlling interest				Total
Beginning balance			23,805				45,420				5,669				270,790				(42,032)				(6,445)				2,466				299,673
Purchases and disposal of treasury stock, net																							(2)								(2)
Cash dividends															(5,097)												(136)				(5,233)
Comprehensive income (loss)
Net income															15,122												196				15,318				15,122				196				15,318
Foreign currency translation adjustment																			(14,810)								(220)				(15,030)				(14,810)				(220)				(15,030)
Unrealized holding gains (losses) on available-for- sale securities																			(1,734)												(1,734)				(1,734)								(1,734)
Pension liability adjustment																			33												33				33								33
Total comprehensive income (loss)																																			(1,389)				(24)				(1,413)
Ending balance			23,805				45,420				5,669				280,815				(58,543)				(6,447)				2,306				293,025

 

Yen (millions)
For the six months ended September 30, 2011
		Makita Corporation shareholders’ equity																								Non- controlling interest				Total				Comprehensive income (Loss)
		Common stock				Additional paid-in capital				Legal reserve				Retained earnings				Accumulated other comprehensive income (loss)				Treasury stock												Net income attributable to Makita Corporation				Net income attributable to the non-controlling interest				Total
Beginning balance			23,805				45,420				5,669				293,532				(54,824)				(6,453)				2,529				309,678
Purchases and disposal of treasury stock, net							1																(24)								(23)
Cash dividends															(7,025)												(150)				(7,175)
Comprehensive income (loss)
Net income															17,104												140				17,244				17,104				140				17,244
Foreign currency translation adjustment																			(17,914)								(279)				(18,193)				(17,914)				(279)				(18,193)
Unrealized holding gains (losses) on available-for- sale securities																			(678)												(678)				(678)								(678)
Pension liability adjustment																			71												71				71								71
Total comprehensive income (loss)																																			(1,417)				(139)				(1,556)
Ending balance			23,805				45,421				5,669				303,611				(73,345)				(6,477)				2,240				300,924

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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(4) Condensed Consolidated Statements of Cash Flows

 

		Yen (millions)
		For the six months ended September 30, 2010						For the six months ended September 30, 2011
Net cash provided by (used in) operating activities			14,285						(1,692	)
Net cash provided by (used in) investing activities			(10,186	)					4,473
Net cash used in financing activities			(5,338	)					(5,131	)
Effect of exchange rate changes on cash and cash equivalents			(3,385	)					(839	)
Net change in cash and cash equivalents			(4,624	)					(3,189	)
Cash and cash equivalents, beginning of period			62,290						51,833
Cash and cash equivalents, end of period			57,666						48,644

(5) Notes on the assumptions for a going concern: None

(6) Condensed Operating Segment Information

 

			Yen (millions)
		For the six months ended September 30, 2010
		Japan				Europe				North America				Asia				Other				Total				Corporate and elimi- nations				Consoli- dated
Sales:
(1) External customers			30,340				56,830				18,542				5,978				22,117				133,807				—				133,807
(2) Inter-segment			22,583				1,385				1,388				46,377				48				71,781				(71,781	)			—
Total			52,923				58,215				19,930				52,355				22,165				205,588				(71,781	)			133,807
Operating expenses			49,369				50,716				18,908				45,597				18,966				183,556				(71,592	)			111,964
Operating income			3,554				7,499				1,022				6,758				3,199				22,032				(189	)			21,843

 

		Yen (millions)
		For the six months ended September 30, 2011
		Japan				Europe				North America				Asia				Other				Total				Corporate and elimi- nations				Consoli- dated
Sales:
(1) External customers			35,001				64,618				20,129				6,942				26,346				153,036				—				153,036
(2) Inter-segment			28,291				1,620				1,842				59,093				279				91,125				(91,125	)			—
Total			63,292				66,238				21,971				66,035				26,625				244,161				(91,125	)			153,036
Operating expenses			54,594				58,199				20,595				59,678				22,256				215,322				(89,239	)			126,083
Operating income			8,698				8,039				1,376				6,357				4,369				28,839				(1,886	)			26,953

(7) Note in case there is any significant change in the shareholders’ equity: None

 

		10
English translation of “KESSAN TANSHIN” originally issued in Japanese

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SUPPORT DOCUMENTATION (CONSOLIDATED)

1. Consolidated Financial Results and Forecast

 

		Yen (millions)
		For the six months ended September 30, 2009								For the six months ended September 30, 2010								For the six months ended September 30, 2011
						(%)								(%)								(%)
Net sales			118,681				(32.4	)			133,807				12.7				153,036				14.4
Domestic			20,831				(14.6	)			22,182				6.5				25,263				13.9
Overseas			97,850				(35.3	)			111,625				14.1				127,773				14.5
Operating income			14,866				(58.8	)			21,843				46.9				26,953				23.4
Income before income taxes			17,271				(50.2	)			21,751				25.9				24,514				12.7
Net income attributable to Makita Corporation			10,622				(57.3	)			15,122				42.4				17,104				13.1
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders (Yen)			77.10								109.77								124.16
Cash dividend per share (Yen)			15.00								15.00								15.00
Dividend payout ratio (%)			19.5								13.7								12.1
Number of Employees			10,131								11,368								12,177

 

		Yen (millions)
		For the year ended March 31, 2011								For the year ending March 31, 2012 (Forecast)
						(%)								(%)
Net sales			272,630				10.9				285,000				4.5
Domestic			46,065				7.9				49,500				7.5
Overseas			226,565				11.5				235,500				3.9
Operating income			41,909				37.9				44,500				6.2
Income before income taxes			42,730				27.5				41,900				(1.9)
Net income attributable to Makita Corporation			29,905				34.4				29,100				(2.7)
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders (Yen)			217.08								211.25
Cash dividend per share (Yen)			66.00								—
Dividend payout ratio (%)			30.4								—
Number of Employees			12,054								—

Note:

1.

The table above shows the changes in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income attributable to Makita Corporation against the corresponding period of the previous year.

2.

Please refer to “Qualitative Information on Consolidated Financial Performance Forecast” on page 4.

 

		11
English translation of “KESSAN TANSHIN” originally issued in Japanese

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2. Consolidated Net Sales by Geographic Area

 

		Yen (millions)
		For the six months ended September  30, 2009								For the six months ended September  30, 2010								For the six months ended  September 30, 2011
						(%)								(%)								(%)
Japan			20,831				(14.6	)			22,182				6.5				25,263				13.9
Europe			51,652				(37.9	)			57,028				10.4				64,604				13.3
North America			17,789				(31.1	)			18,472				3.8				19,822				7.3
Asia			8,620				(34.5	)			11,388				32.1				14,136				24.1
Other regions			19,789				(31.9	)			24,737				25.0				29,211				18.1
Central and South America			7,398				(30.1	)			9,622				30.1				12,618				31.1
Oceania			6,533				(23.2	)			7,888				20.7				9,586				21.5
The Middle East and Africa			5,858				(41.2	)			7,227				23.4				7,007				(3.0	)
Total			118,681				(32.4	)			133,807				12.7				153,036				14.4

 

Note:

The table above sets forth Makita’s consolidated net sales by geographic area based on the customer’s location for the periods presented. Accordingly, it differs from operating segment information on page 10. The table above shows the changes in the percentage ratio of net sales compared to the corresponding period of the previous year.

3. Exchange Rates

 

		Yen
		For the six months ended September 30, 2009		For the six   months ended   September 30,   2010		For the six     months ended   September 30,   2011		For the six months ending March 31, 2012 (Forecast)		For the year ending March  31, 2012 (Forecast)
Yen/U.S. Dollar		95.53		88.89		79.74		77		78
Yen/Euro		133.21		113.80		113.72		102		108

4. Production Ratio (unit basis)

 

		For the six months ended September 30, 2009		For the six   months ended   September 30,   2010		For the six months ended   September 30,   2011
		Composition ratio		Composition ratio		Composition ratio
Domestic		18.4%		15.3%		12.6%
Overseas		81.6%		84.7%		87.4%

5. Consolidated Capital Expenditures, Depreciation and Amortization, and R&D cost

 

		Yen (millions)
		For the six months ended September 30, 2009		For the six   months ended   September 30,   2010		For the six   months ended   September 30,   2011		For the year ending March 31, 2012 (Forecast)
Capital expenditures		6,702		4,855		5,820		17,000
Depreciation and amortization		4,071		3,636		3,474		8,000
R&D cost		3,324		3,549		3,978		8,500

 

		12
English translation of “KESSAN TANSHIN” originally issued in Japanese