Edgar Filing: MAKITA CORP

MAKITA CORPORATION

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 January, 2008

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 x Form 40-F o

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): o

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 o No x

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

TABLE OF CONTENTS


SIGNATURES
Consolidated Financial Results for the nine months ended December 31, 2007 (U.S. GAAP Financial Information)

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.



		MAKITA CORPORATION
		(Registrant)

	By:	/s/ Masahiko Goto
		Masahiko Goto
		President and Representative Director

Date: January 31, 2008

Makita Corporation

Consolidated Financial Results
for the nine months ended December 31, 2007
(U.S. GAAP Financial Information)

(English translation of “ZAIMU/GYOSEKI NO GAIKYO”
originally issued in Japanese language)

CONSOLIDATED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2007

January 31, 2008

Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Masahiko Goto, President

1. Results of the nine months ended December 31, 2007 (From April 1, 2007 to December 31, 2007)

(1) CONSOLIDATED OPERATING RESULTS


	Yen (millions)
	For the nine months ended					For the nine months ended				For the year ended
	December 31, 2006					December 31, 2007				March 31, 2007
				%					%				%
Net sales		202,689		22.3			257,580		27.1		279,933		22.2
Operating income		35,464		(0.2	)		51,222		44.4		48,176		5.2
Income before income taxes		36,489		(5.8	)		51,788		41.9		49,323		0.4
Net income		25,435		(26.1	)		36,214		42.4		36,971		(8.5	)
	Yen

Net income per share:
Basic			176.99					251.94				257.27
Diluted			176.99					251.94				257.27


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, and net income against the corresponding period of the previous year.

(2) CONSOLIDATED FINANCIAL POSITION



	Yen (millions)
	As of			As of			As of
	December 31, 2006			December 31, 2007			March 31, 2007
Total assets		355,553			399,384			368,494
Shareholders’ equity		291,059			327,355			302,675
Shareholders’ equity ratio to total assets (%)		81.9	%		82.0	%		82.1	%
	Yen

Shareholders’ equity per share		2,025.40			2,276.88			2,106.28

(3) CONSOLIDATED CASH FLOWS



	Yen (millions)
	For the nine months			For the nine months			For the year ended
	ended December 31, 2006			ended December 31, 2007			March 31, 2007
Net cash provided by operating activities		22,807			21,930			32,360
Net cash used in investing activities		(20,805	)		(3,727	)		(27,276	)
Net cash used in financing activities		(6,301	)		(13,428	)		(8,307	)
Cash and cash equivalents, end of period		36,289			41,650			37,128


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

2. Consolidated financial forecast for the year ending March 31, 2008 (From April 1, 2007 to March 31, 2008)



	Yen (millions)
	For the year ending March 31, 2008
				%
Net sales		338,000		20.7
Operating income		66,000		37.0
Income before income taxes		66,000		33.8
Net income		45,200		22.3
	Yen

Net income per share			314.38

Notes:

The table above shows the changes in the percentage ratio of net sales, operating income, income before income taxes, and net income against the corresponding period of the previous year.

3. Other

(1)		Changes in important subsidiaries during the term (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None.

		(Ref.) Changes in scope of consolidation and equity method

Consolidation:		Increase		2		Decrease		0
Equity Method:		Increase		2		Decrease		1


(2)		Adoption of simplified accounting methods: None.

(3)		Accounting policy changes from the year ended March 31, 2007: None.

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

This report modifies the consolidated financial forecast for the year ending March 31, 2008. Regarding the assumptions for the revised forecasts and other matters, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative information on consolidated financial forecast” (on page 4).
The financial forecasts given above are based on information as available at the present time, and include potential risk and uncertainties. As a consequence of this and other factors, actual results may vary from the forecasts provided above.


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

[Qualitative Information and Financial Statements]

1. Qualitative information on consolidated operating results

Consolidated net sales up until the third quarter showed double-digit growth in all geographical areas, particularly in Europe and the resource-rich countries of the Middle East and Central and South America, resulting in the growth of 27.1% over the same period of the previous year to 257,580 million yen.

With regard to earnings, operating income rose 44.4% over the same period of the previous year to 51,222 million yen (ratio of operating income to net sales: 19.9%), income before income taxes rose 41.9% to 51,788 million yen (ratio of income before income taxes to net sales: 20.1%), and net income rose 42.4% to 36,214 million yen (ratio of net income to net sales: 14.1%).

Details of sales by geographical area are as follows;

Despite severe conditions in the domestic market where the number of housing starts decreased due to more stringent procedures for applying for building certification, the addition of sales of garden-related engine tools produced by Makita Numazu Corporation (former Fuji Robin Industries Ltd.), a newly consolidated subsidiary as of May 2007, and solid sales in lithium-ion battery tools pushed net sales up 10.8% over the same period of the previous year to 38,222 million yen.

In Europe, growing sales in the Eastern Europe/Russian markets and solid sales in Western Europe resulted in a 35.4% increase in net sales over the same period of the previous year to 119,873 million yen.

In North America, while residential property investments decreased due to the problems of the US sub-prime mortgage market, favorable sales in lithium-ion battery tools during the Christmas period largely through major home improvement chains were robust, driving net sales up 17.7% compared with the same period of the previous year to 43,755 million yen.

In Asia, sales in Singapore and Indonesia in particular were solid, rising 16.9% over the same period of the previous year to 16,679 million yen.

As for other geographical areas, buoyant economies in resource-rich countries contributed to favorable growth in net sales in the Middle East and Africa, which rose 45.1% over the same period of the previous year to 13,964 million yen, in Central and South America which rose 34.4% to 12,756 million yen, and in Oceania which rose 35.4% to 12,331 million yen.

2. Qualitative information on consolidated financial position

[Analysis of assets, liabilities, and shareholders’ equity]

Assets at the end of the third quarter totaled 399,384 million yen, up 8.4% from the end of the previous year. The main factors for the rise were an increase in inventories corresponding to the sales growth, the acquisition of Makita Numazu Corporation as a newly consolidated subsidiary, the rebuilding of Head Office and the Okazaki plant to conform to more stringent earthquake-proof standards, and the expansion of production facilities in China and Rumania.

Liabilities rose 9.2% from the end of the previous year to 69,535 million yen. The main contributing factors for the increase were boosts in production due to growth in sales and an increase in accounts payable accompanying the acquisition of Makita Numazu Corporation as a newly consolidated subsidiary.

With regard to Shareholders’ equity , favorable operating results augmented retained earnings, up 10.9% .
Accordingly, shareholders’ equity amounted to 327,355 million yen, up 8.2%.

[Analysis of cash flows]

Total cash and cash equivalents at the end of period amounted to 41,650 million yen, up 4,522 million yen from the end of the previous year.

(Net Cash Provided by Operating Activities)

Net cash provided by operating activities amounted to 21,930 million yen, reflecting factors including favorable business performances in all regions.

(Net Cash Used in Investing Activities)

Net cash used in investing activities amounted to 3,727 million yen, reflecting mainly capital investment for the rebuilding of facilities at Head Office and the Okazaki plant and expenditure for the acquisition of Makita Numazu Corporation (former Fuji Robin Industries Ltd.).

(Net Cash Used in Financing Activities)

Net cash used in financing activities amounted to 13,428 million yen, primarily reflecting the payment of cash dividends.


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

3. Qualitative information on consolidated financial forecast

Despite spreading repercussions from the US sub-prime loan problem, which will have an impact on economies worldwide, the forecast for consolidated results for the year ending March 2008 takes into consideration Makita’s strong performance up until this third quarter.

Revised financial outlook for consolidated performance during the fiscal 2008/03.



	Yen (millions)
	For the year ending March 31, 2008
							Income before
	Net sales			Operating income			income taxes			Net income

Financial outlook announced previously (A)		330,000			62,000			62,500			42,800
Revised financial outlook (B)		338,000			66,000			66,000			45,200
Change (B-A)		8,000			4,000			3,500			2,400
Percentage revision		2.4	%		6.5	%		5.6	%		5.6	%
Actual results for the previous year ended March 31, 2007		279,933			48,176			49,323			36,971

Assumptions:

The above forecast is based on the assumption of exchange rates for the final quarter of 106 yen to US$1 and 158 yen to 1 Euro.

4. Other

(FORWARD-LOOKING STATEMENTS)

This document contains forward-looking statements based on information available and rational assumptions as of this time. Actual results could differ substantially from the content of these statements, due to one or more of a variety of factors. Important factors deemed to have potential to significantly influence actual results are those noted below. Note that these are not the only factors that can influence actual performance.

	(1)		Makita’s sales are affected by the levels of construction activities and capital investments in its markets.

	(2)		Currency exchange rate fluctuations may adversely affect Makita’s financial results.

	(3)		The global intensified competition may adversely affect Makita’s sales results.

	(4)		If Makita is not able to develop attractive products, Makita’s sales activities may be adversely affected.

	(5)		Geographic concentration of Makita’s main facilities may have adverse effects on Makita’s business activities.

	(6)		Makita’s overseas activities and entry into overseas markets entail risks, which may have a material adverse effect on Makita’s business activities.

	(7)		If Makita fails to maintain cooperative relationships with significant customers, Makita’s sales may be seriously affected.

	(8)		If any of Makita’s suppliers fail to deliver materials or parts required for production as scheduled, Makita’s production activities may be adversely affected.

	(9)		When the procurement of raw materials used by Makita becomes difficult or prices of these raw materials rise sharply, this may have an adverse impact on performance.

	(10)		Product liability litigation or recalls may harm Makita’s financial statements and reputation.

	(11)		Fluctuations in stock market prices may adversely affect Makita’s financial statements.

	(12)		Violation of intellectual property rights may have an adverse impact on performance.

	(13)		Environmental or other government regulations may have a material adverse impact on Makita’s business activities.

	(14)		Investor confidence and the value of Makita’s ADRs and ordinary shares may be adversely impacted if Makita’s management concludes that Makita’s internal controls over financial reporting are not effective as of March 31, 2008, or if Makita’s independent registered public accounting firm is unable to provide an unqualified opinion on the effectiveness of Makita’s internal controls over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002.

Regarding the assumptions for the revised financial forecast, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative information on consolidated financial forecast” (on page 4).


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

5. Condensed Quarterly Consolidated Financial Statements

(1) CONDENSED CONSOLIDATED BALANCE SHEETS



	Yen (millions)
	As of December			As of December			Increase			As of March
	31, 2006			31, 2007			(Decrease)			31, 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		36,289			41,650			5,361			37,128
Time deposits		6,829			5,269			(1,560	)		6,866
Marketable securities		55,977			50,164			(5,813	)		58,217
Trade receivables-
Notes		3,174			3,607			433			3,125
Accounts		48,239			60,702			12,463			54,189
Less- Allowance for doubtful receivables		(959	)		(1,038	)		(79	)		(869	)
Inventories		91,938			114,546			22,608			92,800
Deferred income taxes		3,811			4,964			1,153			5,080
Prepaid expenses and other current assets		9,014			12,793			3,779			9,963

Total current assets		254,312			292,657			38,345			266,499


PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		16,708			18,044			1,336			16,732
Buildings and improvements		55,265			60,815			5,550			57,242
Machinery and equipment		75,222			78,176			2,954			74,087
Construction in progress		5,606			5,987			381			5,576

		152,801			163,022			10,221			153,637
Less- Accumulated depreciation		(90,301	)		(93,757	)		(3,456	)		(90,257	)

		62,500			69,265			6,765			63,380


INVESTMENTS AND OTHER ASSETS:
Investment securities		27,684			22,448			(5,236	)		27,279
Deferred income taxes		1,357			1,505			148			1,367
Other assets		9,700			13,509			3,809			9,969

		38,741			37,462			(1,279	)		38,615

		355,553			399,384			43,831			368,494


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language



	Yen (millions)
	As of December			As of December			Increase			As of March
	31, 2006			31, 2007			(Decrease)			31, 2007
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings		3,914			2,105			(1,809	)		1,892
Trade notes and accounts payable		14,146			22,726			8,580			16,025
Accrued payroll		6,940			6,711			(229	)		8,571
Accrued expenses and other		16,857			20,864			4,007			17,353
Income taxes payable		8,134			5,610			(2,524	)		10,447
Deferred income taxes		68			1			(67	)		28

Total current liabilities		50,059			58,017			7,958			54,316

LONG-TERM LIABILITIES:
Long-term indebtedness		108			924			816			53
Accrued retirement and termination allowances		3,397			4,205			808			3,227
Deferred income taxes		7,907			4,541			(3,366	)		4,976
Other liabilities		1,053			1,848			795			1,112

		12,465			11,518			(947	)		9,368

MINORITY INTERESTS		1,970			2,494			524			2,135

SHAREHOLDERS’ EQUITY:
Common stock		23,805			23,805			—			23,805
Additional paid-in capital		45,437			45,751			314			45,437
Legal reserve and retained earnings		209,498			245,031			35,533			221,034
Accumulated other comprehensive income		12,605			13,029			424			12,697
Treasury stock, at cost		(286	)		(261	)		25			(298	)

		291,059			327,355			36,296			302,675

		355,553			399,384			43,831			368,494


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

(2) CONDENSED CONSOLIDATED STATEMENTS OF INCOME



	Yen (millions)
	For the nine						For the nine												For the year
	months ended						months ended						Increase						ended
	December 31, 2006						December 31, 2007						(Decrease)						March 31, 2007
	(Amount)			(%)			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)
NET SALES		202,689			100.0			257,580			100.0			54,891			27.1			279,933			100.0
Cost of sales		117,595			58.0			149,599			58.1			32,004			27.2			163,909			58.6

GROSS PROFIT		85,094			42.0			107,981			41.9			22,887			26.9			116,024			41.4
Selling, general, administrative and other expenses		49,630			24.5			56,759			22.0			7,129			14.4			67,848			24.2

OPERATING INCOME		35,464			17.5			51,222			19.9			15,758			44.4			48,176			17.2

OTHER INCOME (EXPENSES):
Interest and dividend income		965			0.5			1,670			0.6			705			73.1			1,364			0.5
Interest expense		(240	)		(0.1	)		(210	)		(0.1	)		30			—			(316	)		(0.1	)
Exchange losses on foreign currency transactions, net		(401	)		(0.2	)		(563	)		(0.2	)		(162	)		—			(418	)		(0.2	)
Realized gains (losses) on securities, net		951			0.5			(14	)		(0.0	)		(965	)		—			918			0.3
Other, net		(250	)		(0.2	)		(317	)		(0.1	)		(67	)		—			(401	)		(0.1	)

Total		1,025			0.5			566			0.2			(459	)		(44.8	)		1,147			0.4

INCOME BEFORE INCOME TAXES		36,489			18.0			51,788			20.1			15,299			41.9			49,323			17.6

PROVISION FOR INCOME TAXES		11,054			5.5			15,574			6.0			4,520			40.9			12,352			4.4

NET INCOME		25,435			12.5			36,214			14.1			10,779			42.4			36,971			13.2


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

(3) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW



	Yen (millions)
	For the nine			For the nine			For the year
	months ended			months ended			ended
	December 31, 2006			December 31, 2007			March 31, 2007
Net cash provided by operating activities		22,807			21,930			32,360
Net cash used in investing activities		(20,805	)		(3,727	)		(27,276	)
Net cash used in financing activities		(6,301	)		(13,428	)		(8,307	)
Effect of exchange rate changes on cash and cash equivalents		1,534			(253	)		1,297

Net change in cash and cash equivalents		(2,765	)		4,522			(1,926	)
Cash and cash equivalents, beginning of period		39,054			37,128			39,054

Cash and cash equivalents, end of period		36,289			41,650			37,128


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

(4) CONDENSED OPERATING SEGMENT INFORMATION


For the nine months ended December 31, 2006

	Yen (millions)
													Corporate
					North								and elimi-			Consoli-
	Japan		Europe		America		Asia		Other		Total		nations			dated
Sales:
(1) External customers		45,369		89,244		37,089		7,310		23,677		202,689		—			202,689
(2) Inter-segment		48,273		4,259		4,035		49,260		136		105,963		(105,963	)		—

Total		93,642		93,503		41,124		56,570		23,813		308,652		(105,963	)		202,689

Operating expenses		80,096		80,997		38,927		48,490		21,043		269,553		(102,328	)		167,225
Operating income		13,546		12,506		2,197		8,080		2,770		39,099		(3,635	)		35,464


For the nine months ended December 31, 2007

	Yen (millions)
													Corporate
					North								and elimi-			Consoli-
	Japan		Europe		America		Asia		Other		Total		nations			dated
Sales:
(1) External customers		52,744		119,786		43,640		8,766		32,644		257,580		—			257,580
(2) Inter-segment		52,553		4,052		3,627		76,603		142		136,977		(136,977	)		—

Total		105,297		123,838		47,267		85,369		32,786		394,557		(136,977	)		257,580

Operating expenses		88,055		104,112		45,804		74,839		28,076		340,886		(134,528	)		206,358
Operating income		17,242		19,726		1,463		10,530		4,710		53,671		(2,449	)		51,222


For the year ended March 31, 2007

	Yen (millions)
													Corporate
					North								and elimi-			Consoli-
	Japan		Europe		America		Asia		Other		Total		nations			dated
Sales:
(1) External customers		61,776		124,924		51,432		9,698		32,103		279,933		—			279,933
(2) Inter-segment		64,040		5,709		5,297		67,021		149		142,216		(142,216	)		—

Total		125,816		130,633		56,729		76,719		32,252		422,149		(142,216	)		279,933

Operating expenses		108,403		112,577		54,217		66,815		28,786		370,798		(139,041	)		231,757
Operating income		17,413		18,056		2,512		9,904		3,466		51,351		(3,175	)		48,176

Note: Segment information is determined by the location of the Company and its relevant subsidiaries.


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

SUPPORT DOCUMENTATION (CONSOLIDATION)

1. Consolidated financial results and forecast



	Yen (millions)
	For the nine months						For the nine months
	ended December 31, 2006						ended December 31, 2007
	(Results)						(Results)
	(Amount)			(%)			(Amount)			(%)
Net sales		202,689			22.3			257,580			27.1
Domestic		34,508			15.7			38,222			10.8
Overseas		168,181			23.7			219,358			30.4
Operating income		35,464			(0.2	)		51,222			44.4
Income before income taxes		36,489			(5.8	)		51,788			41.9
Net income		25,435			(26.1	)		36,214			42.4
Net income per share (Yen)			176.99						251.94
Employees			9,008						10,149



	Yen (millions)
	For the year ended						For the six months					For the year ending
	March 31, 2007						ended September					March 31, 2008
	(Results)						30, 2007 (Results)					(Forecast)
	(Amount)			(%)			(Amount)			(%)		(Amount)			(%)
Net sales		279,933			22.2			169,537			28.5		338,000			20.7
Domestic		46,860			12.6			25,649			11.9		51,200			9.3
Overseas		233,073			24.3			143,888			32.1		286,800			23.1
Operating income		48,176			5.2			33,899			58.5		66,000			37.0
Income before income taxes		49,323			0.4			34,468			58.1		66,000			33.8
Net income		36,971			(8.5	)		23,596			53.3		45,200			22.3
Net income per share (Yen)			257.27						164.17					314.38
Employees			9,062						10,093					—

Note:

The table above shows the changes in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year.
Please refer to page 4 for the qualitative information on the financial forecast for the year ending March 31, 2008.


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English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

2. Consolidated net sales by geographic area



	Yen (millions)
	For the nine months				For the nine months				For the year				For the six months
	ended December 31, 2006				ended December 31, 2007				ended March 31, 2007				ended September 30, 2007
	(Results)				(Results)				(Results)				(Results)
	(Amount)		(%)		(Amount)		(%)		(Amount)		(%)		(Amount)		(%)
Japan		34,508		15.7		38,222		10.8		46,860		12.6		25,649		11.9
Europe		88,524		36.1		119,873		35.4		124,020		37.0		78,865		39.4
North America		37,172		7.5		43,755		17.7		51,472		8.0		28,942		18.1
Asia		14,268		12.4		16,679		16.9		19,469		14.6		11,021		12.7
Other regions		28,217		19.4		39,051		38.4		38,112		18.0		25,060		38.3
The Middle East and Africa		9,622		22.5		13,964		45.1		13,064		19.6		8,650		39.4
Central and South America		9,488		21.9		12,756		34.4		12,704		20.6		8,134		37.1
Oceania		9,107		13.8		12,331		35.4		12,344		13.7		8,276		38.3
Total		202,689		22.3		257,580		27.1		279,933		22.2		169,537		28.5

Note:

The table above sets forth Makita’s consolidated net sales by geographic area based on customers location for the periods presented.

3. Exchange rates



	Yen
	For the nine months ended		For the nine months ended
	December 31, 2006		December 31, 2007
	(Results)		(Results)
Yen/U.S. Dollar		116.19		117.35
Yen/Euro		147.98		162.85

Yen

For the year ended

For the six months ended

For the year ending

March 31, 2007

September 30, 2007

March 31, 2008

(Results)

(Forecast)

Yen/U.S. Dollar

116.97

119.40

114

Yen/Euro

150.02

162.33

161

4. Sales growth in local currency basis (major countries)



	For the nine months ended
	December 31, 2007
	(Results)
	(%)
U.S.A.		14.0
U.K.		23.5
China		25.3
Germany		19.3
France		12.4
Australia		17.7
Russia		39.9
Brazil		27.9
Makita Gulf (UAE)*		43.7

*Including export sales for the Middle East and Africa.


			11
English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

5. Production ratio (unit basis)



	For the nine months ended		For the nine months ended		For the year ended		For the six months ended
	December 31, 2006		December 31, 2007		March 31, 2007		September 30, 2007
	(Results)		(Results)		(Results)		(Results)
	(%)		(%)		(%)		(%)
Domestic		27.7		23.0		27.4		24.0
Overseas		72.3		77.0		72.6		76.0

6. Consolidated capital expenditures, depreciation and amortization, and R&D cost



	Yen (millions)
	For the nine months ended		For the nine months ended
	December 31, 2006		December 31, 2007
	(Results)		(Results)
Capital expenditures		9,146		10,122
Depreciation and amortization		5,505		6,408
R&D cost		3,959		4,349



	Yen (millions)
	For the year ended		For the six months ended		For the year ending
	March 31, 2007		September 30, 2007		March 31, 2008
	(Results)		(Results)		(Forecast)
Capital expenditures		12,980		7,161		15,500
Depreciation and amortization		8,773		3,879		9,200
R&D cost		5,460		2,826		5,800


			12
English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in Japanese language

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