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 April, 2012

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: April 27, 2012

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Makita Corporation

Consolidated Financial Results

for the year ended March 31, 2012

(U.S. GAAP Financial Information)

(English translation of “KESSAN TANSHIN”

originally issued in Japanese)

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CONSOLIDATED FINANCIAL RESULTS

FOR THE YEAR ENDED MARCH 31, 2012 (Unaudited)

April 27, 2012

Makita Corporation

Stock code: 6586

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

Masahiko Goto, President, Representative Director & CEO

1. Summary operating results of the year ended March 31, 2012 (From April 1, 2011 to March 31, 2012)

(1) CONSOLIDATED OPERATING RESULTS

		Yen (million)
		For the year ended         March 31, 2011										For the year ended         March 31, 2012
						%										%
Net sales			272,630				10.9						295,711				8.5
Operating income			41,909				37.9						48,516				15.8
Income before income taxes			42,730				27.5						46,963				9.9
Net income attributable to Makita Corporation			29,905				34.4						32,497				8.7
Comprehensive income			17,312				(24.4	)					28,401				64.1
		Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			217.08										236.78
Ratio of net income attributable to Makita Corporation to shareholders’ equity			9.9%										10.3%
Ratio of income before income taxes to total assets			11.8%										12.4%
Ratio of operating income to net sales			15.4%										16.4%

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 attributable to Makita Corporation against the corresponding period of the previous year.

3.

Equity in net earnings of affiliated companies (including non-consolidated subsidiaries): NIL

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

		Yen (million)
		As of March 31, 2011						As of March 31, 2012
Total assets			372,507						383,256
Total equity			309,678						323,778
Total Makita Corporation shareholders’ equity			307,149						321,253
Total Makita Corporation shareholders’ equity ratio to total assets (%)			82.5%						83.8%
		Yen
Total Makita Corporation shareholders’ equity per share			2,229.63						2,366.50
(3) CONSOLIDATED CASH FLOWS
		Yen (million)
		For the year ended March 31, 2011						For the year ended March 31, 2012
Net cash provided by operating activities			19,617						8,622
Net cash used in investing activities			(19,334	)					(4,500	)
Net cash used in financing activities			(7,355	)					(12,707	)
Cash and cash equivalents, end of year			51,833						44,812

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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2. Dividend Information

		Yen
		For the year ended March 31, 2011				For the year ended March 31, 2012				For the year ending March 31, 2013 (Forecast)
Cash dividend per share:
Interim			15.00				15.00				15.00
Year-end			51.00				57.00				(Note	)
Total			66.00				72.00				(Note	)
		Yen (million)
Total cash dividend			9,092				9,804				—
Dividend payout ratio (%)			30.4%				30.4%				—
Dividend to shareholders’ equity ratio (%)			3.0%				3.1%				—

Note:

While the Company has set forth under the Articles of Corporation of the Company that the record date for the payment of dividend shall be the last day of a relevant period, at the present time, the projected amount of dividends as of the said record date has not been determined yet. For further details, refer to “Explanation regarding proper use of business forecasts, and other significant matters” on page 3.

3. Consolidated Financial Performance Forecast for the year ending March 31, 2013 (From April 1, 2012 to March 31, 2013)

		Yen (million)
		For the six months ending          September 30, 2012								For the year ending      March 31, 2013
							%								%
Net sales			150,500				(1.7	)			301,500				2.0
Operating income			22,600				(16.2	)			44,000				(9.3	)
Income before income taxes			22,700				(7.4	)			44,200				(5.9	)
Net income attributable to Makita Corporation			15,400				(10.0	)			30,000				(7.7	)
		Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			113.44								220.99

4. Other

(1)	Changes in important subsidiaries for the year (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None

 

(2)	Changes in principle, procedure and representation of the accounting policies concerning consolidated financial statements preparation: None

 

(3)	Number of shares outstanding (common stock)

 

1. Number of shares issued (including treasury stock):		As of March 31, 2012:					140,008,760
		As of March 31, 2011:					140,008,760
2. Number of treasury stock:		As of March 31, 2012:					4,258,242
		As of March 31, 2011:					2,251,061
3. Average number of shares outstanding:		For the year ended March 31, 2012					137,244,683
		For the year ended March 31, 2011					137,759,272

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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Information regarding financial statements audit

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

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

1.

Regarding the assumptions for the forecasts and other matters, refer to 1.Operating results (2) Outlook for the year ending March 31, 2013, on page 5. 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 various factors above and other, actual results may vary from the forecasts provided above.

2.

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.

     The Board of Directors plans to meet in April 2013 for a report on earnings for the year ending March 31, 2013. 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 2013.

     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.

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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1. OPERATING RESULTS

1. Operating results

(1) Outline of operations results for the year ended March 31, 2012

In the year ended March 31, 2012, the economy in Western Europe, which was once on a recovery trend, slowed down due to the effects of financial crisis etc. However, German economy grew steadily, supported by strong exports due to the depreciation of the euro. The Russian economy continued to be in good condition thanks to rising crude oil prices. In the United States, the economy remained sluggish because the housing market was still weak, though consumer spending showed some signs of recovery. In Asia and Central and South America, robust capital investments and favorable exports kept the economy growing, but the growth pace slowed due to credit tightening in China and Brazil and the flooding in Thailand. In Japan, the economy didn’t attain the full-scale recovery because exports remained weak due to the yen’s unprecedented appreciation against the Euro and the U.S. dollar, though consumer spending gradually recovered after the Great East Japan Earthquake in March 2011.

Under these circumstances, in development side, Makita continuously expanded its product lines, including those of power tools, rechargeable tools and gardening equipment through the development of smaller and lighter tools or tools with lower noise and vibration. In addition, we set up a development and experimental center for gardening equipment at Nisshin Office (Aichi) in October 2011 to upgrade and extend the product line-ups of engine-powered gardening equipment. In production side, we strengthened our quality control system to continuously produce high-quality brands, while improving a production system so that we could flexibly respond to a change in demand. In sales side, we improved the sales network in China and set up a subsidiary in Slovenia to strengthen its sales system in Balkan countries. Through these steps, we strove to maintain and improve our system of providing sales and after-sales services from immediate proximity to the customers, which had already been our forte.

Our consolidated net sales for this year increased by 8.5% to 295,711 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 the yen’s appreciation resulted in a decline in our overseas sales. Operating income increased by 15.8% to 48,516 million yen (operating income ratio: 16.4%). This was mainly because of a leap in capacity utilization at the plant as well as an increase in net sales. Meanwhile, because of an increase in non-operating expenses, such as foreign exchange losses of 2,150 million yen due to a drastic appreciation of the yen and realized losses on securities of 652 million yen due to a fall in share prices, income before income taxes and net income attributable to Makita Corporation increased by 9.9% to 46,963 million yen (income before income taxes ratio: 15.9%) and by 8.7% to 32,497 million yen (net income attributable to Makita Corporation ratio: 11.0%), respectively.

Net sales results by region were as follows:

Net sales in Japan increased by 15.4% to 53,175 million yen compared to the same period of the previous year, a record amount. This was because of the favorable sales of lithium-ion battery products, the best product line-ups in the industry, and increased demand from post-quake restoration and reconstruction efforts.

Net sales in Europe increased by 6.3% to 123,251 million yen compared to the same period of the previous year. This was due to steady sales in Russia, though demand in Western countries, such as Germany and the U.K., slowed down in the latter half of the current year.

Net sales in North America increased by 1.0% to 37,475 million yen compared to the same period of the previous year. This was primarily because our sales, mainly lithium-ion battery products, remained robust amid sluggish housing market, though our sales suffered a decline in value due to the yen’s appreciation.

Net sales in Asia increased by 12.7% to 26,013 million yen compared to the same period of the previous year. This was because demand steadily recovered in Southeast Asian countries, though China’s tight credit policy and Thailand’s flooding affected our sales.

Sales situation in other regions are as follows. Net sales in Central and South America and Oceania increased by 15.2% to 23,370 million yen and by 15.6% to 17,780 million yen, respectively, compared to the same period of the previous year, because demand was strong in both regions. Net sales in the Middle East and Africa decreased by 0.5% to 14,647 million yen, because economic activities stagnated due to political uncertainty.

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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(2) Outlook for the year ending March 31, 2013

In developed countries, competition among companies is expected to intensify further because recovery of demand will remain moderate. In emerging countries including Asia where construction demand is expected to expand continuously, markets with a strong orientation toward low-price products are likely to emerge. With trends in crude oil prices and the foreign exchange rates being unpredictable, Makita is expected to continue facing a challenging business environment.

Based on these situations, Makita will strive to reinforce its R&D and product development activities to deliver more user-friendly, earth-conscious power tools and gardening equipment. It will also strengthen the technical development of compact engines. The global production organizations will be strengthened to respond to changes in demand conditions. Sales activities to professional users will be promoted. In addition, aggressive activities will be pursued to maintain and improve our No. 1 sales and after-sales service system in the industry.

Makita will strive to maintain a solid financial position enabling it to implement these measures, which, we believe, will lead to enhancing customer satisfaction and raising Makita’s position in the industry, resulting, in turn, in the improvement of its corporate value.

In projecting the operational results for the next year, we use the following assumptions:

·

An increase in demand for electric power tools from post-quake restoration and reconstruction efforts will remain moderate in Japan.

·

Demand for electric power tools is unlikely to increase in Europe and the United States.

·

Emerging economies will be influenced by the tight-money policy.

·

Labor costs will continue to rise in emerging countries.

To cope with these assumed conditions, Makita will:

·

Strengthen its R&D and product development capabilities with respect to environmentally friendly power tools and gardening equipment;

·

Further expanding and rolling out each product line as a series;

·

Implement production cost-saving measures, taking advantage of its global production organizations; and

·

Strive to improve its marketing and brand power by fine-tuned response to customer needs and further improved after-sales service.

Meanwhile, Makita saw its production surge to record level this year, because it aggressively built up inventory to cope with the recovery of demand. However, Makita expects its production to fall below this year’s level, sending capacity utilization at the plant lower in the next year, because business environment is likely to become tougher as mentioned above.

On the basis of these factors, Makita forecasts the following performance for the year ending March 31, 2013.

Consolidated Financial Performance Forecast for the Year Ending March 31, 2013

		Yen (million)
		For the six months ending September 30, 2012						For the year ending March 31, 2013
Net sales			150,500						301,500
Operating income			22,600						44,000
Income before income taxes			22,700						44,200
Net income attributable to Makita Corporation			15,400						30,000

Assumption:

The above forecast is based on the assumption of exchange rates of 81 yen to the U.S. dollar and 107 yen to the euro.

(Reference):

The actual exchange rate for the year ended March 31, 2012 was 79.1 yen to the U.S. dollar and 109.0 yen to the euro.

 

 

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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2. Financial position

(1) Analysis on assets, liabilities and total assets

Total assets as of the end of the year increased by 10,749 million yen to 383,256 million yen compared to the previous year.

The increase was mainly due to an increase in “Inventories” thanks to production increase. On the other hand, the increase was partially offset by 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.

Total liabilities as of the end of the year decreased by 3,351 million yen to 59,478 million yen compared to the previous year. This decrease was mainly due to the decrease in “Trade notes and accounts payable”.

Total equity as of the end of the year increased by 14,100 million yen to 323,778 million yen compared to the previous year. This increase was mainly attributable to the increase in “Retained earnings”, 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, and purchases of the treasury stock.

(2) Analysis on cash flows and financial ratios

Total cash and cash equivalents at the end of the year amounted to 44,812 million yen, decreased by 7,021 million yen compared to the end of the previous year.

(Net Cash Provided by Operating Activities)

Cash collected from customers increased due to an increase in sales. However, net cash provided by operating activities was 8,622 million yen (19,617 million yen for the previous year) because cash paid for purchases of parts and raw materials increased as a result of production increase.

(Net Cash Used in Investing Activities)

Net cash used in investing activities was 4,500 million yen (19,334 million yen for the previous year) due to capital expenditures.

(Net Cash Used in Financing Activities)

Net cash used in financing activities totaled 12,707 million yen (7,355 million yen for the previous year). Major uses of cash were purchases of treasury stock and payments of dividends to shareholders.

(Reference)

Trend information of financial ratios

		As of (year ended) March 31,
		2008				2009				2010				2011				2012
Ratio of operating income to net sales			19.6%				17.0%				12.4%				15.4%				16.4%
Equity ratio			81.9%				84.2%				85.0%				82.5%				83.8%
Equity ratio based on a current market price			116.4%				90.0%				121.3%				143.1%				117.6%
Interest-bearing liabilities to net cash provided by operating activities (years)			0.1				0.0				0.0				0.0				0.3
Interest coverage ratio (times)			108.8				95.6				984.9				400.3				43.5

Definitions:

Operating income to net sales ratio: operating income/net sales

Equity ratio: shareholders’ equity/total assets

Equity ratio based on a current market price: total current market value of outstanding shares/total assets

Interest-bearing liabilities to net cash provided by operating activities

    : interest-bearing liabilities /net cash inflow from operating activities

Interest coverage ratio: net cash inflow from operating activities/interest expense

Notes:

1.

All figures are calculated based on a consolidated basis.

2.

The total current market value of outstanding shares is calculated by multiplying the closing market price at the period end by the number of outstanding shares (after deducting the number of treasury stock.)

3.

Interest-bearing debt includes all consolidated balance-sheet debt on which interest payments are made.

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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3. Basic policy regarding profit distribution and cash dividend for the fiscal 2012 and 2013

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. With respect to repurchases of its outstanding shares, Makita aims to implement a flexible capital policy, augment the efficiency of its capital employment, and thereby boost shareholder profit. Also Makita continues to consider execution of own share repurchases in light of trends in stock prices. In this year, Makita repurchased two million shares of its common stock for total 5,033 million yen from December 2011 to January 2012.

Makita intends to maintain a financial position strong enough to withstand the challenges associated with changes in its operating environment and other changes and allocate funds for strategic investments aimed at expanding its global operations.

Our forecast for dividends is as follows;

		For the year ended March 31, 2012         (Result and Forecast)		For the year ending March 31, 2013             (Forecast)
Cash dividend per share:
Interim		15.00 yen		15.00 yen
Year-end		57.00 yen		(Note)
Total		72.00 yen		(Note)

Notes:

The Board of Directors plans to meet in April 2013 for a report on earnings for the year ending March 31, 2013. At such 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 2013. However, if certain special circumstances arise, computation of the amount of dividends will be based on consolidated net income attributable to Makita Corporation after certain adjustments.

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.

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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2. GROUP STRUCTURE

Makita Corporation (the “Company”) and its consolidated subsidiaries (collectively “Makita”) mainly manufacture and sell portable electric power tools. Makita is comprised of the Company and 50 consolidated subsidiaries.

Group Structure of Makita is outlined as follows;

 

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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3. MANAGEMENT POLICIES

1. Basic Policies

Makita has set itself the goal of consolidating a strong position in the global power tool industry as a global supplier of a comprehensive range of power tools that assist people in creating homes and living environments. In order to achieve this, Makita has established strategic business approaches and quality policies such as “A management approach in symbiosis with society” “Managing to take good care of our customers,” “Proactive, sound management” and “Emphasis on trustworthy and reliable corporate culture as well as management to draw out the capabilities of each employee.” Makita aims to generate solid profitability so that Makita can promote its sustained corporate development and meet the needs of its shareholders, customers, and employees as well as regional societies where Makita operates.

2. Target Management Indicators

Makita believes that attaining sustained growth and maintaining high profitability are the ways to increase corporate value. Makita’s specific numerical target is to maintain a stable ratio of operating income to net sales on a consolidated basis of 10% or more.

3. Medium-to-Long-Term Management Strategy

Makita aims to establish high brand recognition and become a “Strong Company” capable of acquiring and maintaining the top market share as an international total supplier of power tools for professional use, pneumatic tools, gardening equipment and other tools in each international region. To achieve these objectives, we will put focus on maintaining and expanding our efforts to develop new products that guarantee great satisfaction to professional users, our global production structure realizing both high quality and cost competitiveness at the same time, and the best marketing and after-sale service structure of the power tools industry in Japan and in international regions.

In order to carry out this management strategy, Makita is focusing its management resources on the professional-use tool category, while maintaining its strong financial position that can withstand any unpredictable changes in the operational environment including those related to foreign exchange risk and country risk.

4. Preparing for the Future

Makita will strive to reinforce its R&D and product development activities to deliver more user-friendly and earth-conscious power tools and gardening equipment. It will also strengthen the technical development of compact engines. The global production organizations will be strengthened to respond to changes in demand conditions. Sales activities to professional users will be promoted. In addition, activities to maintain and improve our No. 1 sales and after-sales service system in the industry will be aggressively promoted. We strive to improve our corporate value.

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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4. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Consolidated Balance Sheets

 

		Yen (millions)
		As of March 31, 2011								As of March 31, 2012
		Composition ratio								Composition ratio
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			51,833								44,812
Time deposits			15,719								13,504
Short-term investments			33,555								25,125
Trade receivables-
Notes			1,914								1,769
Accounts			46,785								48,445
Less- Allowance for doubtful receivables			(935	)							(753	)
Inventories			110,595								129,571
Deferred income taxes			6,039								5,898
Prepaid expenses and other current assets			9,990								8,392
Total current assets			275,495				74.0%				276,763				72.2%
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			20,065								20,498
Buildings and improvements			72,201								73,332
Machinery and equipment			73,195								75,460
Construction in progress			1,369								6,594
			166,830								175,884
Less- Accumulated depreciation			(94,792	)							(98,146	)
Total net property, plant and equipment			72,038				19.3%				77,738				20.3%
INVESTMENTS AND OTHER ASSETS:
Investments			17,069								19,154
Goodwill			721								721
Other intangible assets, net			4,595								4,515
Deferred income taxes			1,403								853
Other assets			1,186								3,512
Total investments and other assets			24,974				6.7%				28,755				7.5%
Total assets			372,507				100.0%				383,256				100.0%

 

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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		Yen (millions)
		As of March 31, 2011												As of March 31, 2012
		Composition ratio												Composition ratio
LIABILITIES
CURRENT LIABILITIES:
Short-term borrowings							868												2,351
Trade notes and accounts payable							25,691												21,822
Other payables							4,386												4,313
Accrued expenses							6,125												6,314
Accrued payroll							7,543												7,803
Income taxes payable							4,317												5,293
Deferred income taxes							112												125
Other liabilities							7,183												5,697
Total current liabilities							56,225				15.1%								53,718				14.0%
LONG-TERM LIABILITIES:
Long-term indebtedness							19												12
Accrued retirement and termination benefits							3,128												3,027
Deferred income taxes							746												130
Other liabilities							2,711												2,591
Total long-term liabilities							6,604				1.8%								5,760				1.5%
Total liabilities							62,829				16.9%								59,478				15.5%
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												316,937
Accumulated other comprehensive income (loss)							(54,824	)											(59,066	)
Treasury stock, at cost							(6,453	)											(11,513	)
Total Makita Corporation shareholders’ equity							307,149				82.5%								321,253				83.8%
NONCONTROLLING INTEREST							2,529				0.6%								2,525				0.7%
Total equity							309,678				83.1%								323,778				84.5%
Total liabilities and equity							372,507				100.0%								383,256				100.0%

 

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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 year ended     March 31, 2011								For the year ended    March 31, 2012
		Composition ratio								Composition ratio
NET SALES			272,630				100.0%				295,711				100.0%
Cost of sales			167,851				61.6%				180,541				61.1%
GROSS PROFIT			104,779				38.4%				115,170				38.9%
Selling, general, administrative and others, net			62,870				23.0%				66,654				22.5%
OPERATING INCOME			41,909				15.4%				48,516				16.4%
OTHER INCOME (EXPENSES):
Interest and dividend income			1,313								1,491
Interest expense			(33	)							(242	)
Exchange gains (losses) on foreign currency transactions, net			(591	)							(2,150	)
Realized gains (losses) on securities, net			132								(652	)
Total			821				0.3%				(1,553	)			(0.5)%
INCOME BEFORE INCOME TAXES			42,730				15.7%				46,963				15.9%
Provision for income taxes
Current			11,094								14,309
Deferred			1,365								(135	)
Total			12,459				4.6%				14,174				4.8%
NET INCOME			30,271				11.1%				32,789				11.1%
Less: Net income attributable to the noncontrolling interest			(366	)			(0.1)%				(292)				(0.1)%
NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION			29,905				11.0%				32,497				11.0%

 

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3. Consolidated Statements of changes in Equity and Comprehensive Income (Loss)

Yen (millions)

		For the year ended March 31, 2011
		Makita Corporation shareholders’ equity																																Comprehensive income (Loss)
		Common stock				Additional paid-in capital				Legal reserve				Retained earnings				Accumulated other comprehensive income (loss)				Treasury stock				Non- controlling interest				Total				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																							(8	)							(8	)
Cash dividends															(7,163	)											(136	)			(7,299	)
Comprehensive income (loss)
Net income															29,905												366				30,271				29,905				366				30,271
Foreign currency translation adjustment																			(11,549	)							(167	)			(11,716	)			(11,549	)			(167	)			(11,716	)
Unrealized holding gains (losses) on available-for- sale securities																			(838	)											(838	)			(838	)							(838	)
Pension liability adjustment																			(405	)											(405	)			(405	)							(405	)
Total comprehensive income (loss)																																			17,113				199				17,312
Ending balance			23,805				45,420				5,669				293,532				(54,824	)			(6,453	)			2,529				309,678

 

		Yen (millions)
		For the year ended March 31, 2012
		Makita Corporation shareholders’ equity																																Comprehensive income (Loss)
		Common stock				Additional paid-in capital				Legal reserve				Retained earnings				Accumulated other comprehensive income (loss)				Treasury stock				Non- controlling interest				Total				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																(5,060	)							(5,059	)
Cash dividends															(9,092	)											(150	)			(9,242	)
Comprehensive income (loss)
Net income															32,497												292				32,789				32,497				292				32,789
Foreign currency translation adjustment																			(4,806	)							(146	)			(4,952	)			(4,806	)			(146	)			(4,952	)
Unrealized holding gains (losses) on available-for- sale securities																			487												487				487								487
Pension liability adjustment																			77												77				77								77
Total comprehensive income (loss)																																			28,255				146				28,401
Ending balance			23,805				45,421				5,669				316,937				(59,066	)			(11,513	)			2,525				323,778

 

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4. Condensed Consolidated Statements of Cash Flows

		Yen (millions)
		For the year ended          March 31, 2011						For the year ended          March 31, 2012
Net cash provided by operating activities			19,617						8,622
Net cash used in investing activities			(19,334	)					(4,500	)
Net cash used in financing activities			(7,355	)					(12,707	)
Effect of exchange rate changes on cash and cash equivalents			(3,385	)					1,564
Net change in cash and cash equivalents			(10,457	)					(7,021	)
Cash and cash equivalents, beginning of year			62,290						51,833
Cash and cash equivalents, end of year			51,833						44,812

5. Notes on the assumptions for a going concern: None

6. Significant Accounting Policies

(1)	Scope of consolidation and equity method

Number of consolidated subsidiaries: 50

Major subsidiaries are as follows;

Makita U.S.A. Inc., Makita (U.K.) Ltd., Makita France SAS, Makita Werkzeug GmbH (Germany),

Makita Oy (Finland), Makita Gulf FZE (UAE), Makita (China) Co., Ltd., Makita (Kunshan) Co., Ltd.,

Makita (Australia) Pty. Ltd. Makita do Brasil Ferramentas Eletricas Ltda.

 

(2)	Significant Accounting Policies (Summary)

Consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.

1. Short-term investments and Investments

Makita classifies investments in debt and marketable equity securities as available-for-sale or held-to-maturity securities. Makita does not hold any marketable or investment securities that are bought and held primarily for the purpose of sale in the near term.

2. Inventories

Inventory costs include raw materials, labor and manufacturing overheads. Inventories are valued at the lower of cost or market price, with cost determined principally based on the average cost method.

3. Property, Plant and Equipment and Depreciation

Property, plant and equipment is stated at cost. For the Company, depreciation is computed principally by using the declining-balance method over the estimated useful lives. Most of the subsidiaries have adopted the straight-line method for computing depreciation.

4. Income Taxes

Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in income in the period that includes the enactment date.

5. Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

6. Revenue Recognition

Makita recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services are rendered, the sales price is fixed or determinable and collectibility is reasonably assured.

 

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7. Notes to Consolidated Financial Statements (Unaudited)

Condensed Operating segment information

 

		Yen (millions)
		For the year ended March 31, 2011
		Japan				Europe				North America				Asia				Other				Total				Elimi- nations				Consoli- dated
Sales:
(1) External customers			62,194				115,554				37,573				12,365				44,944				272,630				—				272,630
(2) Inter-segment			51,230				3,171				2,979				101,216				116				158,712				(158,712	)			—
Total			113,424				118,725				40,552				113,581				45,060				431,342				(158,712	)			272,630
Operating expenses			102,905				105,361				38,698				100,575				38,646				386,185				(155,464	)			230,721
Operating income (loss)			10,519				13,364				1,854				13,006				6,414				45,157				(3,248	)			41,909

 

		Yen (millions)
		For the year ended March 31, 2012
		Japan				Europe				North America				Asia				Other				Total				Elimi- nations				Consoli- dated
Sales:
(1) External customers			71,499				123,537				38,073				12,887				49,715				295,711				—				295,711
(2) Inter-segment			54,183				4,094				3,145				108,288				351				170,061				(170,061	)			—
Total			125,682				127,631				41,218				121,175				50,066				465,772				(170,061	)			295,711
Operating expenses			110,086				113,726				38,921				110,396				43,614				416,743				(169,548	)			247,195
Operating income (loss)			15,596				13,905				2,297				10,779				6,452				49,029				(513	)			48,516

Net sales by product categories

 

		Yen (millions)																Increase (Decrease)
		For the year ended March 31, 2011								For the year ended March 31, 2012
		Composition ratio								Composition ratio								(%)
Finished goods			233,097				85.5				253,101				85.6				8.6
Parts, repairs and accessories			39,533				14.5				42,610				14.4				7.8
Total net sales			272,630				100.0				295,711				100.0				8.5

 

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Information per share

 

		Yen
		As of March 31, 2011		As of March 31, 2012
Total Makita Corporation Shareholders’ equity per share		2,229.63		2,366.50
		Yen
		For the year ended                  March 31, 2011		For the year ended               March 31, 2012
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders		217.08		236.78

 

Note:

Net income per share is calculated on the basis of the average number of shares outstanding during the year.

Average number of shares outstanding is as follows:

    For the year ended March 31, 2012:     137,244,683

    For the year ended March 31, 2011:     137,759,272

 

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Short-term investments and Investments

 

As of March 31, 2011						Yen (millions)
						Cost				Gross unrealized holding gains				Gross unrealized holding losses				Fair value				Carrying amount
Short-term investments:		Available-for-sale securities:		Corporate debt securities			588				3				—				591				591
				Investments in trusts			4,990				260				55				5,195				5,195
				MMF and FFF			26,720				—				—				26,720				26,720
				Marketable equity securities			671				277				—				948				948
				Total			32,969				540				55				33,454				33,454
		Held-to-maturity securities:		Corporate debt securities			101				—				—				101				101
				Total			101				—				—				101				101
		Total					33,070				540				55				33,555				33,555
Investments:		Available-for-sale securities:		Marketable equity securities			7,486				4,552				238				11,800				11,800
				Total			7,486				4,552				238				11,800				11,800
		Held-to-maturity securities:		Corporate debt securities			3,964				1				43				3,922				3,964
				Government debt securities			200				1				—				201				200
				Public debt securities (except Government debt securities)			706				1				—				707				706
				Total			4,870				3				43				4,830				4,870
		Total					12,356				4,555				281				16,630				16,670
In addition to the above investments, Makita holds 399 million yen of non-marketable equity securities (carried at cost).
As of March 31, 2012						Yen (millions)
						Cost				Gross unrealized holding gains				Gross unrealized holding losses				Fair value				Carrying amount
Short-term investments:		Available-for-sales securities:		Corporate debt securities			589				2				—				591				591
				Investments in trusts			6,074				451				13				6,512				6,512
				MMF and FFF			13,336				—				—				13,336				13,336
				Marketable equity securities			606				262				—				868				868
				Total			20,605				715				13				21,307				21,307
		Held-to-maturity securities:		Corporate debt securities			3,517				1				3				3,515				3,517
				Public debt securities (except Government debt securities)			301				—				1				300				301
				Total			3,818				1				4				3,815				3,818
		Total					24,423				716				17				25,122				25,125
Investments:		Available-for-sales securities:		Marketable equity securities			7,173				4,704				—				11,877				11,877
				Total			7,173				4,704				—				11,877				11,877
		Held-to-maturity securities:		Corporate debt securities			6,086				10				18				6,078				6,086
				Government debt securities			200				1				—				201				200
				Public debt securities (except Government debt securities)			604				4				—				608				604
				Total			6,890				15				18				6,887				6,890
		Total					14,063				4,719				18				18,764				18,767

    In addition to the above investments, Makita holds 387 million yen of non-marketable equity securities (carried at cost).

Significant Subsequent Events : None

 

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SUPPORT DOCUMENTATION (CONSOLIDATED)

1. Consolidated Financial Results and Forecast

		Yen (millions)
		For the year ended March 31, 2010								For the year ended March 31, 2011								For the year ended March 31, 2012
			(%)								(%)								(%)
Net sales			245,823				(16.4	)			272,630				10.9				295,711				8.5
Domestic			42,697				(7.6	)			46,065				7.9				53,175				15.4
Overseas			203,126				(18.0	)			226,565				11.5				242,536				7.0
Operating income			30,390				(39.3	)			41,909				37.9				48,516				15.8
Income before income taxes			33,518				(24.6	)			42,730				27.5				46,963				9.9
Net income attributable to Makita Corporation			22,258				(33.1	)			29,905				34.4				32,497				8.7
Earning per share (Basic) Net income attributable to Makita Corporation common shareholders (Yen)			161.57								217.08								236.78
Cash dividend per share (Yen)			52.00								66.00								72.00
Dividend payout ratio (%)			32.2								30.4								30.4
Employees			10,328								12,054								12,563
										Yen (millions)
										For the six months ending September 30, 2012 (Forecast)								For the year ending March 31, 2013 (Forecast)
											(%)								(%)
Net sales											150,500				(1.7	)			301,500				2.0
Domestic											26,300				4.1				54,500				2.5
Overseas											124,200				(2.8	)			247,000				1.8
Operating income											22,600				(16.2	)			44,000				(9.3	)
Income before income taxes											22,700				(7.4	)			44,200				(5.9	)
Net income attributable to Makita Corporation											15,400				(10.0	)			30,000				(7.7	)
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders (Yen)											113.44								220.99
Cash dividend per share (Yen)											15.00								(Note 2)

Notes:

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 previous year.

2.	Regarding our forecast for dividends, refer to page 7.

 

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2. Consolidated Net Sales by Geographic Area

		Yen (millions)
		For the year ended March 31, 2010								For the year ended March 31, 2011								For the year ended March 31, 2012
						(%)								(%)								(%)
Japan			42,697				(7.6	)			46,065				7.9				53,175				15.4
Europe			109,106				(20.4	)			115,977				6.3				123,251				6.3
North America			34,509				(18.4	)			37,111				7.5				37,475				1.0
Asia			18,373				(16.5	)			23,073				25.6				26,013				12.7
Other regions			41,138				(11.4	)			50,404				22.5				55,797				10.7
Central and South America			15,228				(9.0	)			20,295				33.3				23,370				15.2
Oceania			13,116				(0.7	)			15,383				17.3				17,780				15.6
The Middle East and Africa			12,794				(22.3	)			14,726				15.1				14,647				(0.5	)
Total			245,823				(16.4	)			272,630				10.9				295,711				8.5

Note:

The table above sets forth Makita’s consolidated net sales by geographic area based on the customer’s location for the years presented. Accordingly, it differs from operating segment information on page 15. The table above shows the changes in the percentage ratio of Net sales against the corresponding period of the previous year.

3. Exchange Rates

		Yen
		For the year ended March 31, 2010		For the year ended   March 31, 2011		For the year ended     March 31, 2012		For the year ending    March 31, 2013 (Forecast)
Yen/U.S. Dollar		92.89		85.73		79.06		81
Yen/Euro		131.18		113.12		109.00		107

4. Production Ratio (unit basis)

		For the year ended   March 31, 2010		For the year ended     March 31, 2011		For the year ended    March 31, 2012
Domestic		16.8%		14.5%		12.2%
Overseas		83.2%		85.5%		87.8%

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

		Yen (millions)
		For the year ended March 31, 2010		For the year ended   March 31, 2011		For the year ended     March 31, 2012		For the year ending    March 31, 2013 (Forecast)
Capital expenditures		10,837		9,742		13,481		14,000
Depreciation and amortization		8,308		7,557		7,237		7,800
R&D cost		6,782		7,283		7,603		8,500

 

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English Translation of “KESSAN TANSHIN” originally issued in Japanese