MAKITA CORPORATION
Table of Contents

 
 
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 July, 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 three months ended June 30, 2008
(U.S. GAAP Financial Information)
SUPPORT DOCUMENTATION (CONSOLIDATED)


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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.
         
     
     MAKITA CORPORATION    
    (Registrant)  
 
  By:   /s/ Masahiko Goto    
    Masahiko Goto   
    President and Representative Director   
 
Date: July 31, 2008

 


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(MAKITA LOGO)
Makita Corporation
Consolidated Financial Results
for the three months ended June 30, 2008
(U.S. GAAP Financial Information)
(English translation of “KESSAN TANSHIN”
originally issued in Japanese language)

 


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(MAKITA LOGO)
CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2008
July 31, 2008
Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Masahiko Goto, President
1. Results of the three months ended June 30, 2008 (From April 1, 2008 to June 30, 2008)
(1) CONSOLIDATED OPERATING RESULTS
 
                                                 
    Yen (millions)  
    For the three months ended     For the three months ended  
    June 30, 2007     June 30, 2008  
                      %                       %  
Net sales
    80,615               30.1       84,636               5.0  
Operating income
    14,992               43.1       17,091               14.0  
Income before income taxes
    15,417               39.4       16,677               8.2  
Net income
    11,243               43.8       11,781               4.8  
   
Yen
 
     
Net income per share:
            78.24                       82.81          
 
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
March 31, 2008
    As of
June 30, 2008
 
Total assets
    386,467       390,946  
Shareholders’ equity
    316,498       318,561  
Shareholders’ equity ratio to total assets (%)
    81.9 %     81.5 %
    Yen  
     
Shareholders’ equity per share
    2,201.36       2,262.96  
 
2. Dividend information
 
                 
    Yen  
    For the year
ended March
    For the year
ending March
 
    31, 2008     31, 2009 (Forecast)  
Cash dividend per share:
               
Interim
    30.00       30.00  
Year-end
    67.00     (Note)
Total
    97.00     (Note)
 
Notes:
    1.     The forecast for cash dividend announced on April 30, 2008 has not been revised.
 
      2.     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 yet been determined. For further details, refer to “Explanation regarding proper use of business forecasts, and other significant matters” on page 2.
         
 
    1  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       


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(MAKITA LOGO)
3. Consolidated financial forecast for the year ending March 31, 2009 (From April 1, 2008 to March 31, 2009)
                                                         
 
    Yen (millions)  
    For the six months ending             For the year ending  
    September 30, 2008             March 31, 2009  
                    %                             %  
Net sales
    169,500               (0.0 )             343,000               0.1  
Operating income
    31,600               (6.8 )             64,000               (4.5 )
Income before income taxes
    30,700               (10.9 )             63,000               (4.2 )
Net income
    20,500               (13.1 )             42,000               (8.8 )
 
                          Yen                        
     
Net income per share
            145.63                               298.35          
 
Note: The consolidated financial forecast for the year ending March 31, 2009 has not been revised.
4. Other
(1)   Changes in important subsidiaries during the period (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None
 
(2)   Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements:
 
    Note: Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 3.
 
(3)   Changes in principle, procedure and representation of the accounting policies concerning quarterly consolidated financial statements preparation:
 
    Note: Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 3.
 
(4)   Number of shares outstanding (common stock)
       
1. Number of shares issued (including treasury stock):    
As of June 30, 2008:   144,008,760
 
As of March 31, 2008:  144,008,760
2. Number of treasury stock:
As of June 30, 2008:   3,236,709
 
As of March 31, 2008:  235,135
3. Average number of shares outstanding:
As of June 30, 2008:  142,272,994
 
As of June 30, 2007:  143,699,966

Explanation regarding proper use of business forecasts, and other significant matters
 
1.   The consolidated financial forecast for the year ending March 31, 2009 has not been revised. Regarding the assumptions for the forecasts and other matters, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative information on consolidated financial forecast” on page 3.
 
    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 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 after certain adjustments.
 
    The Board of Directors plans to meet in April 2009 for a report on earnings for the year ending March 31, 2009. 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. The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2009.
 
    The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated net income per share (after adjustments for special circumstances) and multiplied by 100.
         
 
    2  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


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(MAKITA LOGO)
[Qualitative Information and Financial Statements]
1. Qualitative information on consolidated operating results
     Net sales in this first quarter were 84,636 million yen, an increase of 5.0% compared to the same quarter of the previous year, as sales strength continued in emerging markets including Eastern Europe, Russia, Latin America, and the Middle East, which were partially offset by the sales decreases in the U.S. and Japan, where investments in the housing sector were weak.
     With regard to earnings, operating income amounted to 17,091 million yen (ratio of operating income to net sales; 20.2%), up 14.0% from the same quarter of the previous year, income before income taxes amounted to 16,677 million yen (ratio of income before income taxes to net sales; 19.7%), up 8.2% and net income for the quarter amounted to 11,781 million yen (ratio of net income to net sales; 13.9%), up 4.8%.
     Net sales by geographic area were as follows;
     In Japan, as the long-stagnant new housing starts have not yet recovered in full, the sales decreased by 5.3% from the same quarter of the previous year to 11,447 million yen.
     In Europe, while the growth rate of demand in Western Europe slowed down, the sales in Eastern Europe and Russia continued to be solid, resulting in 40,835 million yen, an increase of 8.5%.
     In North America, in addition to the fact that the severe downturn in the U.S. housing market continues, in the foreign exchange market, U.S. dollar moved significantly weaker against Japanese yen in comparison with the rate of the same period of the previous year, which resulted in a decrease of 16.3% to 11,440 million yen.
     In Asia, the business in Southeast Asia showed strong results, recording an increase of 29.8% to 7,036 million yen.
     In other regions, as strong economies benefiting from soaring prices of natural resources still continue, the sales in Central and South America were up by 29.6% to 4,960 million yen, the sales in the Middle East and Africa rose by 19.5% to 4,826 million yen, and the sales in Oceania were higher by 4.0% to 4,092 million yen.
2. Qualitative information on consolidated financial position
          (Analysis on assets, liabilities and shareholders’ equity)
     Total assets as of the end of this first quarter amounted to 390,946 million yen, which was an increase of 1.2% from the end of the previous year. Key factors for this included the increase in inventories carried out in anticipation of sales increases, and the increase in fixed assets associated with facilities and equipment at overseas plants.
     Liabilities rose by 3.1% compared to the previous year-end to 69,535 million yen. The main reason for this increase was an increase in long-term deferred income taxes liabilities mainly as a result of the appreciation of the fair value of the securities investment portfolio of the Company.
     Shareholders’ equity was up by 0.7% compared to the previous year to 318,561 million yen.
3. Qualitative information on consolidated financial forecast
     Despite generally solid emerging markets, as the market environments in Japan as well as in the U.S. are expected to remain severe, and the sense of deceleration in demand in Western European markets are expected to increase, the management environment surrounding Makita remains unpredictably challenging. In light of such uncertain circumstances, at the present time, the Company will not make any change to its forecast announced on April 30, 2008 for the results for six months ending September 30, 2008 and the results for the year ending March 31, 2009.
4. Other
(1)   Changes in important subsidiaries during the period (Changes in specific subsidiaries accompanied by changes in scope of consolidation): 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 (benefit) 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 fiscal first quarter ended June 30, 2008.
(3)   Changes in principle, procedure and representation of the accounting policies concerning quarterly consolidated financial statements preparation:
Starting with this fiscal year, the Company has adopted the “Fair Value Measurements” pursuant to the Statement of Financial Accounting Standards No. 157. This Statement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The adoption did not give rise to any material effect on the Company’s consolidated financial position or results of operations.
         
 
    3  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


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(MAKITA LOGO)
5. Quarterly consolidated financial statements
(1) Quarterly consolidated balance sheets
                                 
 
    Yen (millions)  
    As of March     As of June  
    31, 2008     30, 2008  
    Composition ratio (%)     Composition ratio (%)  
ASSETS
                               
CURRENT ASSETS:
                               
Cash and cash equivalents
    46,306               42,780          
Time deposits
    2,393               2,855          
Marketable securities
    49,443               31,686          
Trade receivables-
                               
Notes
    2,950               3,519          
Accounts
    60,234               62,709          
Less- Allowance for doubtful receivables
    (1,018 )             (1,071 )        
Inventories
    112,187               125,747          
Deferred income taxes
    6,478               6,203          
Prepaid expenses and other current assets
    11,382               13,576          
 
                           
Total current assets
    290,355       75.1 %     288,004       73.7 %
 
                           
 
                               
PROPERTY, PLANT AND EQUIPMENT, at cost:
                               
Land
    18,370               18,640          
Buildings and improvements
    64,268               64,461          
Machinery and equipment
    75,651               79,254          
Construction in progress
    2,765               5,845          
 
                           
 
    161,054               168,200          
Less- Accumulated depreciation
    (91,996 )             (93,802 )        
 
                           
 
    69,058       17.9 %     74,398       19.0 %
 
                           
 
                               
INVESTMENTS AND OTHER ASSETS:
                               
Investment securities
    18,034               19,459          
Goodwill
    2,001               1,998          
Other intangible assets, net
    2,240               2,400          
Deferred income taxes
    1,826               1,362          
Other assets
    2,953               3,325          
 
                           
 
    27,054       7.0 %     28,544       7.3 %
 
                       
 
    386,467       100.0 %     390,946       100.0 %
 
                       
 
 
         
 
    4  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


Table of Contents

(MAKITA LOGO)
                                 
 
    Yen (millions)  
    As of March     As of June  
    31, 2008     30, 2008  
    Composition ratio (%)     Composition ratio (%)  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                               
CURRENT LIABILITIES:
                               
Short-term borrowings
    1,724               3,240          
Trade notes and accounts payable
    23,372               23,951          
Other payables
    5,640               6,091          
Accrued expenses
    7,982               7,259          
Accrued payroll
    8,096               6,288          
Income taxes payable
    7,518               6,407          
Deferred income taxes
    58               60          
Other liabilities
    5,266               6,664          
 
                           
Total current liabilities
    59,656       15.4 %     59,960       15.4 %
 
                           
 
                               
LONG-TERM LIABILITIES:
                               
Long-term indebtedness
    908               889          
Accrued retirement and termination allowances
    3,716               3,677          
Deferred income taxes
    1,215               3,002          
Other liabilities
    1,958               2,007          
 
                           
 
    7,797       2.0 %     9,575       2.4 %
 
                           
 
    67,453       17.4 %     69,535       17.8 %
 
                           
 
                               
MINORITY INTERESTS
    2,516       0.7 %     2,850       0.7 %
 
                           
 
                               
SHAREHOLDERS’ EQUITY:
                               
Common stock
    23,805               23,805          
Additional paid-in capital
    45,753               45,753          
Legal reserve
    5,669               5,669          
Retained earnings
    249,191               251,340          
Accumulated other comprehensive income (loss)
    (7,657 )             4,187          
Treasury stock, at cost
    (263 )             (12,193 )        
 
                           
 
    316,498       81.9 %     318,561       81.5 %
 
                       
 
    386,467       100.0 %     390,946       100.0 %
 
                       
 
                               
 
                 
 
    As of March     As of June  
    31, 2008     30, 2008  
Total number of shares authorized
    496,000,000       496,000,000  
Number of shares issued
    144,008,760       144,008,760  
Number of shares issued (excluding treasury stock)
    143,773,625       140,772,051  
 
           
Number of treasury stock
    235,135       3,236,709  
 
           
 
               
 
         
 
    5  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


Table of Contents

(MAKITA LOGO)
(2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
 
                                 
    Yen (millions)  
    For the three months ended     For the three months ended  
    June 30, 2007     June 30, 2008  
    (Amount)     (%)     (Amount)     (%)  
NET SALES
    80,615       100.0       84,636       100.0  
Cost of sales
    47,862       59.4       49,404       58.4  
 
                       
GROSS PROFIT
    32,753       40.6       35,232       41.6  
Selling, general, administrative and other expenses
    17,761       22.0       18,141       21.4  
 
                       
 
                               
OPERATING INCOME
    14,992       18.6       17,091       20.2  
 
                       
OTHER INCOME (EXPENSES):
                               
Interest and dividend income
    585               558          
Interest expense
    (89 )             (77 )        
Exchange gains (losses) on foreign currency transactions, net
    31               (359 )        
Realized gains (losses) on securities, net
    12               (365 )        
Other, net
    (114 )             (171 )        
 
                       
Total
    425       0.5       (414 )     (0.5 )
 
                       
INCOME BEFORE INCOME TAXES
    15,417       19.1       16,677       19.7  
 
                       
 
                               
PROVISION FOR INCOME TAXES:
                               
Current
    2,631               3,131          
Deferred
    1,543               1,765          
 
                       
Total
    4,174       5.2       4,896       5.8  
 
                       
NET INCOME
    11,243       13.9       11,781       13.9  
 
                       
 
                               
 
         
 
    6  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


Table of Contents

(MAKITA LOGO)
(3) CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
 
                 
    Yen (millions)  
    For the three months ended     For the three months ended  
    June 30, 2007     June 30, 2008  
Net cash provided by operating activities
    3,337       2,544  
Net cash provided by investing activities
    6,157       12,764  
Net cash used in financing activities
    (7,928 )     (20,280 )
Effect of exchange rate changes on cash and cash equivalents
    908       1,446  
 
           
Net change in cash and cash equivalents
    2,474       (3,526 )
Cash and cash equivalents, beginning of period
    37,128       46,306  
 
           
Cash and cash equivalents, end of period
    39,602       42,780  
 
           
 
               
 
(4) NOTES ON THE PRECONDITIONS FOR A GOING CONCERN: None
(5) CONDENSED QUARTERLY OPERATING SEGMENT INFORMATION
 
                                                                 
For the three months ended June 30, 2007  
    Yen (millions)  
                                                    Corporate        
                    North                             and elimi-     Consoli-  
    Japan     Europe     America     Asia     Other     Total     nations     dated  
Sales:
                                                               
(1) External customers
    16,479       37,760       13,540       2,888       9,948       80,615             80,615  
(2) Inter-segment
    15,924       1,476       1,217       22,030       49       40,696       (40,696 )      
 
                                               
Total
    32,403       39,236       14,757       24,918       9,997       121,311       (40,696 )     80,615  
 
                                               
Operating expenses
    27,056       33,079       14,143       21,518       8,666       104,462       (38,839 )     65,623  
Operating income
    5,347       6,157       614       3,400       1,331       16,849       (1,857 )     14,992  
 
                                                                 
For the three months ended June 30, 2008  
    Yen (millions)  
                                                    Corporate        
                    North                             and elimi-     Consoli-  
    Japan     Europe     America     Asia     Other     Total     nations     dated  
Sales:
                                                               
(1) External customers
    17,175       40,730       11,604       3,283       11,844       84,636             84,636  
(2) Inter-segment
    16,991       1,666       1,404       26,478       27       46,566       (46,566 )      
 
                                               
Total
    34,166       42,396       13,008       29,761       11,871       131,202       (46,566 )     84,636  
 
                                               
Operating expenses
    30,064       35,414       12,787       25,563       9,896       113,724       (46,179 )     67,545  
Operating income
    4,102       6,982       221       4,198       1,975       17,478       (387 )     17,091  
 
         
 
    7  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


Table of Contents

(MAKITA LOGO)
(6) NOTES IN CASE THERE IS ANY SIGNIFICANT CHANGE IN THE SHAREHOLDERS’ EQUITY
QUARTERLY CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME
 
         
    Yen (millions)  
    For the three months ended  
    June 30, 2008  
COMMON STOCK:
       
Beginning balance
    23,805  
 
     
Ending balance
    23,805  
 
     
 
       
ADDITIONAL PAID-IN CAPITAL:
       
Beginning balance
    45,753  
 
     
Ending balance
    45,753  
 
     
 
       
LEGAL RESERVE:
       
Beginning balance
    5,669  
 
     
Ending balance
    5,669  
 
     
 
       
RETAINED EARNINGS:
       
Beginning balance
    249,191  
Cash dividends
    (9,632 )
Net income
    11,781  
 
     
Ending balance
    251,340  
 
     
 
       
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
       
Beginning balance
    (7,657 )
Other comprehensive income for the period
    11,844  
 
     
Ending balance
    4,187  
 
     
 
       
TREASURY STOCK, at cost:
       
Beginning balance
    (263 )
Purchases (Note)
    (11,930 )
 
     
Ending balance
    (12,193 )
 
     
 
       
TOTAL SHAREHOLDERS’ EQUITY
    318,561  
 
     
 
       
 
Note:   Purchases of treasury stock
In May 2008, the Company bought back its own shares on the market at 11,923 million yen.
         
 
    8  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       

 


Table of Contents

(MAKITA LOGO)
SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated financial results and forecast
 
                                                 
                    Yen (millions)  
                    For the three months ended     For the three months ended  
                    June 30, 2007     June 30, 2008  
                    (Results)     (Results)  
                    (Amount)     (%)     (Amount)     (%)  
Net sales
                    80,615       30.1       84,636       5.0  
Domestic
                    12,090       12.2       11,447       (5.3 )
Overseas
                    68,525       33.9       73,189       6.8  
Operating income
                    14,992       43.1       17,091       14.0  
Income before income taxes
                    15,417       39.4       16,677       8.2  
Net income
                    11,243       43.8       11,781       4.8  
Net income per share (Yen)
                    78.24         82.81    
Employees
                    9,443         10,515    
 
                                                 
 
    Yen (millions)  
    For the year ended     For the six months     For the year ending  
    March 31, 2008     ending September 30, 2008     March 31, 2009  
    (Results)     (Forecast)     (Forecast)  
    (Amount)     (%)     (Amount)     (%)     (Amount)     (%)  
Net sales
    342,577       22.4       169,500       (0.0 )     343,000       0.1  
Domestic
    52,193       11.4       24,700       (3.7 )     50,000       (4.2 )
Overseas
    290,384       24.6       144,800       0.6       293,000       0.9  
Operating income
    67,031       39.1       31,600       (6.8 )     64,000       (4.5 )
Income before income taxes
    65,771       33.3       30,700       (10.9 )     63,000       (4.2 )
Net income
    46,043       24.5       20,500       (13.1 )     42,000       (8.8 )
Net income per share (Yen)
    320.30         145.63         298.35    
Employees
    10,436                    
 
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 3 for the qualitative information on consolidated financial forecast for the six months and fiscal year 2009.
2. Consolidated net sales by geographic area
 
                                                 
    Yen (millions)  
    For the three months ended     For the three months ended     For the year ended  
    June 30, 2007     June 30, 2008     March 31, 2008  
    (Results)     (Results)     (Results)  
    (Amount)     (%)     (Amount)     (%)     (Amount)     (%)  
Japan
    12,090       12.2       11,447       (5.3 )     52,193       11.4  
Europe
    37,632       44.0       40,835       8.5       160,360       29.3  
North America
    13,672       14.0       11,440       (16.3 )     56,422       9.6  
Asia
    5,422       17.3       7,036       29.8       22,629       16.2  
Other regions
    11,799       39.9       13,878       17.6       50,973       33.7  
Central and South America
    3,828       39.3       4,960       29.6       16,764       32.0  
The Middle East and Africa
    4,038       37.8       4,826       19.5       18,687       43.0  
Oceania
    3,933       42.8       4,092       4.0       15,522       25.7  
Total
    80,615       30.1       84,636       5.0       342,577       22.4  
 
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 7.
         
 
    9  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language
       


Table of Contents

(MAKITA LOGO)
3. Exchange rates
 
                                         
    Yen
    For the three months ended   For the three months ended   For the year ended   For the six months ending   For the year ending
    June 30, 2007   June 30, 2008   March 31, 2008   September 30, 2008   March 31, 2009
    (Results)   (Results)   (Results)   (Forecast)   (Forecast)
Yen/U.S. Dollar
    120.82       104.56       114.44       100       100  
Yen/Euro
    162.75       163.44       161.59       158       158  
 
4. Sales growth in local currency basis (major countries)
 
         
    For the three months ended
    June 30, 2008
    (Results)
    (%)
U.K.
    3.9  
Germany
    0.9  
France
    4.7  
Russia
    31.4  
U.S.A.
    (7.4 )
China
    24.0  
Brazil
    46.5  
Makita Gulf (UAE)*
    43.3  
Australia
    7.2  
 
* Including export sales for the Middle East and Africa.
5. Production ratio (unit basis)
 
                         
    For the three months ended   For the three months ended   For the year ended
    June 30, 2007   June 30, 2008   March 31, 2008
    (Results)   (Results)   (Results)
 
    (%)       (%)       (%)  
Domestic
    24.7       20.7       22.5  
Overseas
    75.3       79.3       77.5  
 
6. Consolidated capital expenditures, depreciation and amortization, and R&D cost
 
                                 
    Yen (millions)
    For the three months ended   For the three months ended   For the year ended   For the year ending
    June 30, 2007   June 30, 2008   March 31, 2008   March 31, 2009
    (Results)   (Results)   (Results)   (Forecast)
Capital expenditures
    3,961       5,458       15,036       25,000  
Depreciation and amortization
    1,802       2,181       8,871       10,700  
R&D cost
    1,403       1,686       5,922       6,500  
 
         
 
    10  
English Translation of “KESSAN TANSHIN” originally issued in Japanese language