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, 2009

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-        

 

 

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 28, 2009

Makita Corporation

Consolidated Financial Results
for the year ended March 31, 2009
(U.S. GAAP Financial Information)

 
 

(English translation of “KESSAN TANSHIN”
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2009

April 28, 2009

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

1. Operating results of the year ended March 31, 2009 (From April 1, 2008 to March 31, 2009)

(1) CONSOLIDATED OPERATING RESULTS

		Yen (million)
		For the year ended												For the year ended
		March 31, 2008												March 31, 2009
											%												%
Net sales			342,577								22.4				294,034								(14.2	)
Operating income			67,031								39.1				50,075								(25.3	)
Income before income taxes			65,771								33.3				44,017								(33.1	)
Net income			46,043								24.5				33,286								(27.7	)
		Yen
Net income per share							320.30												236.88
Ratio of net income to shareholders’ equity							14.9	%											11.1	%
Ratio of income before income taxes to total assets							17.4	%											12.2	%
Ratio of operating income to net sales							19.6	%											17.0	%

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

(2) CONSOLIDATED FINANCIAL POSITION

		Yen (million)
		As of				As of
		March 31, 2008				March 31, 2009
Total assets			386,467				336,644
Shareholders’ equity			316,498				283,485
Shareholders’ equity ratio to total assets (%)			81.9	%			84.2	%
		Yen
Shareholders’ equity per share			2,201.36				2,057.76
(3) CONSOLIDATED CASH FLOWS
		Yen (million)
		For the year ended				For the year ended
		March 31, 2008				March 31, 2009
Net cash provided by operating activities			29,275				22,178
Net cash provided by (used in) investing activities			(4,508	)			232
Net cash used in financing activities			(13,815	)			(33,179	)
Cash and cash equivalents, end of year			46,306				34,215

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

2. Dividend Information

		Yen
										For the year
		For the year				For the year				ending March
		ended March 31,				ended March 31,				31, 2010
		2008				2009				(Forecast)
Cash dividend per share:
Interim			30.00				30.00				15.00
Year-end			67.00				50.00			(Note)
Total			97.00				80.00			(Note)
						Yen (million)
Total cash dividend			13,946				11,111				—
Dividend payout ratio (%)			30.3	%			33.8	%			—
Dividend ratio for shareholders’ equity (%)			4.5	%			3.8	%			—

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 Forecast for the year ending March 31, 2010 (From April 1, 2009 to March 31, 2010)

		Yen (million)
		For the six months ending								For the year ending
		September 30, 2009								March 31, 2010
						%								%
Net sales			113,500				(35.3	)			230,000				(21.8	)
Operating income			8,200				(77.3	)			18,000				(64.1	)
Income before income taxes			7,700				(77.7	)			17,000				(61.4	)
Net income attributable to Makita Corporation			5,400				(78.3	)			12,000				(63.9	)
Earning per share (Basic)		Yen
Net income attributable to Makita Corporation common shareholders		39.20								87.11

Note:

The meaning of “Net income attributable to Makita Corporation” is the same as the former “Net income”.

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 (Changes indicated to “CHANGE OF SIGNIFICANT ACCOUNTING POLICIES”): Yes

(3)

Number of shares outstanding (common stock)

1. Number of shares issued (including treasury stock):		As of March 31, 2009:					140,008,760
		As of March 31, 2008:					144,008,760
2. Number of treasury stock:		As of March 31, 2009:					2,244,755
		As of March 31, 2008:					235,135
3. Average number of shares outstanding:		For the year ended March 31, 2009					140,518,582
		For the year ended March 31, 2008					143,749,824
Note: Regarding number of shares used as the basis for calculation of net income per share, please see page 19, “Information per share”.

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

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

1.		Regarding the assumptions for the forecasts and other matters, refer to “Outlook for the year ending March 31, 2010” 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, 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 2010 for a report on earnings for the year ending March 31, 2010. 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 2010.
		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.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

1. OPERATING RESULTS

1. Operating results

(1) Outline of operations and business results for the year ended March 31, 2009

     The business environments surrounding Makita have remained severe in Japan and the United States since the beginning of the year mainly due to the impact of the weak housing market, while in Western Europe, Russia and Eastern Europe and other emerging countries, the business was generally strong until the summer of 2008 supported by active investments in construction, the high prices of crude oil and other resources. However, the financial crisis expanded from the United States to other economies worldwide in September 2008 as a result of a series of stock price crashes and steep depreciation of currency values. The keen sense of recession has spread everywhere from Japan, Western Europe and developed countries to emerging countries in Eastern Europe and Russia, Central and South America, the Middle East and others. Consequently, investment in construction and housing dropped significantly in the world, which resulted in a sharp decrease in the demand for power tools. Accordingly, business conditions in the power tool market further worsened in the second half of the year forward the end of the year.

     Under these circumstances, in development side, Makita expanded its product lines, including those of power tools, rechargeable tools and gardening equipment designed to further improve working conditions for users through the development of smaller and lighter tools or tools with lower noise and vibration. In production side, the construction of the second plant in Brazil, South America and the expansion of a plant in Romania, Eastern Europe, were completed and both plants began smooth operations. The aim of these plants is to further strengthen the global production system of the Group in order to flexibly satisfy the demand worldwide. In sales side, Makita strove to strengthen its global sales systems throughout the year. In North America, our business relationship with Home Depot, Inc. was strengthened. In addition, we strove to maintain and improve our No.1 sales and after-sales service system in the industry in Japan and other developed countries. Subsidiaries were established in Bulgaria, Colombia, and India, to strengthen our marketing in the expanding emerging countries. A subsidiary was also established in the Kingdom of Morocco, which serves as a marketing base in the expanding African market.

     Our consolidated net sales decreased by 14.2% from the previous year to 294,034 million yen. This was because the significant appreciation of the yen had advanced steeply since last fall and the demand for power tools weakened throughout the world. The demand shrinkage in Japan and the United States started in the beginning of the current year, followed by weakening demand in West European countries. Moreover, economic growth in Eastern Europe and Russia, Asia, Central and South America, the Middle East and other emerging markets, where it had previously remained strong, also slowed down.

     Our profit figures were adversely affected by a decrease in sales on the Japanese yen basis due to the appreciation of the yen against many other currencies and a higher ratio of SGA expenses to sales, especially in the second half of the year. Consequently, operating income for the year decreased by 25.3% to 50,075 million yen from the previous year (operating income ratio: 17.0%). As for other expenses, exchange losses on foreign currency transactions and realized losses on securities due to falling stock prices increased from the previous year. Consequently, income before income taxes was 44,017 million yen (income before income taxes ratio: 15.0%), a 33.1% decrease from the previous year, and net income was 33,286 million yen (net income ratio: 11.3%), a 27.7% decrease.

     Sales results by region were as follows:

     Sales in Japan decreased by 11.4% from the previous year to 46,222 million yen due to the economic stagnation and weak housing start. There was no sign of recovery in the demand for power tools in the domestic market.

     Sales in Europe decreased by 14.5% to 137,113 million yen due to the decline in construction demand in Western Europe, along with the decline in demand since last fall in Eastern Europe and Russia, where sales had been strong in the past. The stronger yen against the British pound, the euro and other European currencies also had an adverse effect on sales.

     Sales in North America decreased by 25.0% to 42,289 million yen due to the worsening housing and commercial construction markets in the United States, weak sales in the Christmas season and the stronger yen against the U.S. dollar.

     Sales in Asia totaled 21,995 million yen, a 2.8% decrease from the previous year. Sales in Asia were significantly affected by the steep decline in construction investments in Southeast Asian countries.

     Sales results in other areas were negatively affected by sharply worsening economic conditions in these areas caused mainly by the steep decline in the prices of crude oil and other mineral resources. Significant depreciation in local currency values against yen also had a negative effect. Consequently, sales in Central and South America

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

totaled 16,738 million yen, a 0.2% decrease from the previous year, sales in the Middle East and Africa region totaled 16,466 million yen, a 11.9% decrease, and sales in Oceania totaled 13,211 million yen, a 14.9% decrease.

(2) Outlook for the year ending March 31, 2010

     Regarding the future forecast, business conditions for Makita are expected to remain severe for the present. The global simultaneous recession is expected to continue to worsen. Consequently, the demand for power tools will remain low everywhere in the world, with competition in the industry intensifying further. Movement in the foreign exchange market will be unpredictable. However, it is expected that the economy will show some signs of recovery in the second half of 2009 by the effect of all economic and financial measures implemented by countries around the world in concert.

     Based on these forecasts, 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.

     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:

	•		The yen will become stronger against other currencies, compared with the current year.
	•		Recovery of the demand for power tools and related materials is unlikely in Japan, the United States, Western Europe and other developed countries.
	•		Since the potential demand is strong in many emerging countries, it is expected that their recovery pace will be faster than that of developed countries.
	•		Raw material prices will become lower compared with the current year.

     To cope with these assumed conditions, Makita will:

	•		Continue development of new products that meet the changing needs of the market;
	•		Strengthen its development activities for engine products;
	•		Continue production volume adjustments until around the summer to respond to the decline in global demand and to reduce inventories;
	•		Implement production cost-saving measures, taking advantage of its global production organizations;
	•		Reduce the parts procurement cost; and
	•		Strive to improve its marketing and brand power by fine-tuned response to professional users needs and further improved after-sales service.

          On the basis of above measures, Makita forecasts the following performance for the year ending March 31, 2010.

Consolidated Financial Forecast for the Year Ending March 31, 2010

		Yen (million)
		For the six months ending				For the year ending
		September 30, 2009				March 31, 2010
Net sales			113,500				230,000
Operating income			8,200				18,000
Income before income taxes			7,700				17,000
Net income attributable to Makita Corporation			5,400				12,000

The meaning of “Net income attributable to Makita Corporation” is the same as the former “Net income”.

Assumption:

     The above forecast is based on the assumption of exchange rates of 95 yen to US$1 and 125 yen to 1 Euro.

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

2. Financial position

(1) Analysis on assets, liabilities and total assets

     Total assets at the end of year decreased by 49,823 million yen compared to the previous year to 336,644 million yen. Main factors for this decrease were the sales of marketable securities in order to acquire the Company’s own shares, the decrease in trade accounts receivable resulting from the decreased sales revenues and the decrease in the value of assets held in foreign currencies due to the stronger yen against these currencies

     Liabilities decreased by 16,555 million yen compared to the previous year to 50,898 million yen. Main factors for this decrease were the decreased trade notes and accounts payable resulting from the reduced production volume implemented to reduce the inventory level and the decreased income taxes payable due to the decrease in the taxable income.

     Shareholders’ equity decreased by 33,013 million yen compared to the previous year to 283,485 million yen. Main factor for this decrease was the decreased foreign currency translation adjustment that was included in “Accumulated Other Comprehensive Income”, resulting from the decrease in the value of net assets held by foreign subsidiaries due to the stronger yen against their local currencies.

(2) Analysis on cash flows and financial ratios

     Total cash and cash equivalents (cash) at the end of year amounted to 34,215 million yen, reflecting a decrease of 12,091 million yen from the end of the previous year.

          (Net Cash Provided by Operating Activities)

     As stated in the “Outline of operations and business results for the year ended March 31, 2009” in Page 4, net cash provided from operating activities weakened to 22,178 million yen due to the operating results that have weakened since the beginning of the second half of the year.

          (Net Cash Provided by Investing Activities)

     Net cash provided by investing activities increased by 232 million yen. Main factor for this increase was proceeds received from sales and redemption of marketable securities, which exceeded expenditures aggressively used in capital investment, including the expansion of the Romanian plant, the construction of the second plant in Brazil and the manufacture of molds for new products.

          (Net Cash Used in Financing Activities)

     Net cash used in financing activities totaled 33,179 million yen. Major uses of cash were buy-back of six million shares of the Company’s own stock and payments of dividends to shareholders.

Financial ratios
		As of (year ended) March 31,
		2005				2006				2007				2008				2009
Operating income to net sales ratio			16.1	%			20.0	%			17.2	%			19.6	%			17.0	%
Equity ratio			75.8	%			81.8	%			82.1	%			81.9	%			84.2	%
Equity ratio based on a current market price			97.1	%			160.0	%			170.4	%			116.4	%			90.0	%
Interest-bearing liabilities to net cash provided by operating activities			0.5				0.1				0.1				0.1				0.0
Interest coverage ratio (times)			28.4				54.7				102.4				108.8				95.6

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

3. Basic policy regarding profit distribution and cash dividend for the fiscal 2009 and 2010

     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. 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.

     Makita bought back 3 million shares of Makita in May and November 2008, respectively, totaling 6 million shares, or 17.6 billion yen. Of these treasury shares, 4 million shares were retired in February 2009 following deliberate considerations regarding future utilization and the appropriate level of treasury shares to be retained by Makita.

     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				For the year ending
		March 31, 2009				March 31, 2010
		(Result and Forecast)				(Forecast)
Cash dividend per share:
Interim		30.00 yen				15.00 yen
Year-end		50.00 yen				(Note 1)
Total		80.00 yen				(Note 1)

Notes:						The Board of Directors plans to meet in April 2010 for a report on earnings for the year ending March 31, 2010. 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. The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2010. However, if certain special circumstances arise, computation of the amount of dividends will be based on consolidated net income after certain adjustments.
						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.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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, 48 consolidated subsidiaries and an equity method affiliate.

     Group Structure of Makita is outlined as follows;

     

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

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 build a strong brand equity that is unrivaled in the industry and to become what it refers to as a “Strong Company,” in other words, to become a company that can obtain and maintain worldwide market leadership as a global total supplier of tools such as power tools for professional use, gardening tools, and air tools. This is to be accomplished through the ability to develop new products that satisfy professional users, a global production structure that achieves both high quality and cost competitiveness, as well as a sales and after-sales service structure that leads the industry both in the domestic and overseas markets.

     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

4. CONSOLIDATED FINANCIAL STATEMENTS

1. CONDENSED CONSOLIDATED BALANCE SHEETS

		Yen (millions)
		As of March 31, 2008								As of March 31, 2009
		Composition ratio								Composition ratio
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			46,306								34,215
Time deposits			2,393								2,623
Marketable securities			49,443								29,470
Trade receivables-
Notes			2,950								2,611
Accounts			60,234								43,078
Less- Allowance for doubtful receivables			(1,018	)							(1,129	)
Inventories			112,187								111,002
Deferred income taxes			6,478								7,264
Prepaid expenses and other current assets			11,382								11,269
Total current assets			290,355				75.1%				240,403				71.4%
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			18,370								18,173
Buildings and improvements			64,268								65,223
Machinery and equipment			75,651								74,458
Construction in progress			2,765								4,516
			161,054								162,370
Less- Accumulated depreciation			(91,996	)							(89,674	)
			69,058				17.9%				72,696				21.6%
INVESTMENTS AND OTHER ASSETS:
Investment securities			18,034								11,290
Goodwill			2,001								1,987
Other intangible assets, net			2,240								2,280
Deferred income taxes			1,826								5,050
Other assets			2,953								2,938
			27,054				7.0%				23,545				7.0%
			386,467				100.0%				336,644				100.0%

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

		Yen (millions)
		As of March 31, 2008								As of March 31, 2009
		Composition ratio								Composition ratio
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings			1,724								239
Trade notes and accounts payable			23,372								14,820
Other payables			5,640								4,397
Accrued expenses			7,982								5,642
Accrued payroll			8,096								7,361
Income taxes payable			7,518								2,772
Deferred income taxes			58								50
Other current liabilities			5,266								5,536
Total current liabilities			59,656				15.4%				40,817				12.1%
LONG-TERM LIABILITIES:
Long-term indebtedness			908								818
Accrued retirement and termination allowances			3,716								7,116
Deferred income taxes			1,215								548
Other liabilities			1,958								1,599
			7,797				2.0%				10,081				3.0%
			67,453				17.4%				50,898				15.1%
MINORITY INTERESTS			2,516				0.7%				2,261				0.7%
SHAREHOLDERS’ EQUITY:
Common stock			23,805								23,805
Additional paid-in capital			45,753								45,420
Legal reserve			5,669								5,669
Retained earnings			249,191								257,487
Accumulated other comprehensive income (loss)			(7,657	)							(42,461	)
Treasury stock, at cost			(263	)							(6,435	)
			316,498				81.9%				283,485				84.2%
			386,467				100.0%				336,644				100.0%

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

2. CONDENSED CONSOLIDATED STATEMENTS OF INCOME

		Yen (millions)
		For the year ended								For the year ended
		March 31, 2008								March 31, 2009
		Composition ratio								Composition ratio
NET SALES			342,577				100.0%				294,034				100.0%
Cost of sales			199,220				58.2%				170,894				58.1%
GROSS PROFIT			143,357				41.8%				123,140				41.9%
Selling, general, administrative and other expenses			76,326				22.2%				73,065				24.9%
OPERATING INCOME			67,031				19.6%				50,075				17.0%
OTHER INCOME (EXPENSES):
Interest and dividend income			2,092								1,562
Interest expense			(269	)							(236	)
Exchange gains (losses) on foreign currency transactions, net			(1,233	)							(3,408	)
Realized gains (losses) on securities, net			(1,384	)							(3,548	)
Other, net			(466	)							(428	)
Total			(1,260	)			(0.4)%				(6,058	)			(2.0)%
INCOME BEFORE INCOME TAXES			65,771				19.2%				44,017				15.0%
PROVISION FOR INCOME TAXES:
Current			19,148								11,277
Deferred			580								(546	)
Total			19,728				5.8%				10,731				3.7%
NET INCOME			46,043				13.4%				33,286				11.3%

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

3. CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS)

		Yen (millions)
		For the year ended				For the year ended
		March 31, 2008				March 31, 2009
COMMON STOCK:
Beginning balance			23,805				23,805
Ending balance			23,805				23,805
ADDITIONAL PAID-IN CAPITAL:
Beginning balance			45,437				45,753
Retirement of treasury stock			—				(329	)
Disposal of treasury stock			316				(4	)
Ending balance			45,753				45,420
LEGAL RESERVE:
Beginning balance			5,669				5,669
Ending balance			5,669				5,669
RETAINED EARNINGS:
Beginning balance			215,365				249,191
Cash dividends			(12,217	)			(13,855	)
Retirement of treasury stock			—				(11,135	)
Net income			46,043				33,286
Ending balance			249,191				257,487
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
Beginning balance			12,697				(7,657	)
Other comprehensive income (loss) for the year			(20,354	)			(34,804	)
Ending balance			(7,657	)			(42,461	)
TREASURY STOCK, at cost:
Beginning balance			(298	)			(263	)
Purchases			(51	)			(17,655	)
Retirement			—				11,464
Disposal			86				19
Ending balance			(263	)			(6,435	)
TOTAL SHAREHOLDERS’ EQUITY			316,498				283,485
DISCLOSURE OF COMPREHENSIVE INCOME (LOSS):
Net income for the year			46,043				33,286
Other comprehensive income (loss) for the year :
Foreign currency translation adjustment			(10,274	)			(28,051	)
Unrealized holding losses on available-for-sale securities			(6,395	)			(3,065	)
Pension liability adjustment			(3,685	)			(3,688	)
Total comprehensive income (loss) for the year			25,689				(1,518	)

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

4. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		Yen (millions)
		For the year ended				For the year ended
		March 31, 2008				March 31, 2009
Net cash provided by operating activities			29,275				22,178
Net cash provided by (used in) investing activities			(4,508	)			232
Net cash used in financing activities			(13,815	)			(33,179	)
Effect of exchange rate changes on cash and cash equivalents			(1,774	)			(1,322	)
Net change in cash and cash equivalents			9,178				(12,091	)
Cash and cash equivalents, beginning of year			37,128				46,306
Cash and cash equivalents, end of year			46,306				34,215

5. NOTES ON THE PRECONDITIONS FOR A GOING CONCERN: None

6. SIGNIFICANT ACCOUNTING POLICIES

(1) Scope of consolidation and equity method

Number of consolidated subsidiaries: 48

Major subsidiaries are as follows;

Makita U.S.A. Inc., Makita Corporation of America, Makita (U.K.) Ltd.,
Makita France SAS, Makita Werkzeug GmbH (Germany), Makita Oy (Finland),
Makita (China) Co., Ltd., Makita (Kunshan) Co., Ltd., Makita (Australia) Pty. Ltd.

Number of equity method affiliates: 1

(2) Significant Accounting Policies (Summary)

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

1.

Marketable and Investment Securities

Makita accounts for marketable and investment securities in accordance with SFAS No. 115, “Accounting for Certain Investments in Debt and Equity Securities,” which requires all investments in debt and marketable equity securities to be classified as either trading, available-for-sale securities or held-to-maturity securities.

2.

Allowance for Doubtful Receivables

Allowance for doubtful receivables represents the Makita’s best estimate of the amount of probable credit losses in its existing receivables. The allowance is determined based on, but is not limited to, historical collection experience adjusted for the effects of the current economic environment, assessment of inherent risks, aging and financial performance.

3.

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.

4.

Property, Plant and Equipment and Depreciation

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

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

5.

Goodwill and Other Intangible Assets

Makita follows the provisions of SFAS No. 141 and SFAS No. 142. SFAS No. 141, “Business Combinations” requires the use of only the purchase method of accounting for business combinations and refines the definition of intangible assets acquired in a purchase business combination. SFAS No. 142, “Goodwill and Other Intangible Assets” eliminates the amortization of goodwill and instead requires annual impairment testing thereof. SFAS No. 142 also requires acquired intangible assets with a definite useful life to be amortized over their respective estimated useful lives and reviewed for impairment in accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.”

6.

Income Taxes

Makita accounts for income taxes in accordance with the provision of SFAS No. 109, “Accounting for Income Taxes,” which requires an asset and liability approach for financial accounting and reporting for income taxes. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Makita also adopts FIN 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109”

7.

Pension Plans

Makita accounts for pension plans in accordance with the provisions of SFAS No. 87, “Employers’ Accounting for Pensions” and SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans.”

8.

Impairment of Long-Lived Assets

Makita accounts for impairment of long-lived assets with finite useful lives in accordance with the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-lived Assets.”

9.

Derivative Financial Instruments

Makita conforms to SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” as amended.

10.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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.

11.

Revenue Recognition

Makita recognizes revenue at the time of delivery or shipment when all of the following conditions are met; (1) The sales price is fixed and determinable, (2) Collectability is reasonably assured, (3) The title and risk of loss pass to the customer, and (4) Payment terms are established consistent with Makita’s normal payment terms.

12.

Changes in principles, procedures and disclosures of the accounting policies concerning 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.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

7. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Operating segment information

For the year ended March 31, 2008
		Yen (millions)
										North																Corporate and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			72,466				160,218				56,234				11,271				42,388				342,577				—				342,577
(2) Inter-segment			69,540				5,606				5,212				101,211				172				181,741				(181,741	)			—
Total			142,006				165,824				61,446				112,482				42,560				524,318				(181,741	)			342,577
Operating expenses			120,020				138,850				59,727				98,468				36,964				454,029				(178,483	)			275,546
Operating income			21,986				26,974				1,719				14,014				5,596				70,289				(3,258	)			67,031

For the year ended March 31, 2009
		Yen (millions)
										North																Corporate and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			63,859				137,230				42,446				9,954				40,545				294,034				—				294,034
(2) Inter-segment			56,371				4,154				4,690				86,697				121				152,033				(152,033	)			—
Total			120,230				141,384				47,136				96,651				40,666				446,067				(152,033	)			294,034
Operating expenses			112,109				121,668				46,291				84,438				35,816				400,322				(156,363	)			243,959
Operating income			8,121				19,716				845				12,213				4,850				45,745				4,330				50,075

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

Marketable Securities and Investment Securities

1. Available-for-sale securities

As of March 31, 2008
		Yen (millions)
						Gross unrealized holding												Carrying
		Cost				Gains				Losses				Fair value				Amount
Marketable securities:
Equity securities			1,473				941				2				2,412				2,412
Debt securities			3,411				83				—				3,494				3,494
Investments in trusts			42,563				991				616				42,938				42,938
			47,447				2,015				618				48,844				48,844
Investment securities:
Equity securities			10,234				5,977				107				16,104				16,104
Investments in trusts			184				—				2				182				182
			10,418				5,977				109				16,286				16,286
As of March 31, 2009
		Yen (millions)
						Gross unrealized holding												Carrying
		Cost				Gains				Losses				Fair value				Amount
Marketable securities:
Equity securities			998				343				33				1,308				1,308
Debt securities			954				60				—				1,014				1,014
Investments in trusts			26,704				204				110				26,798				26,798
			28,656				607				143				29,120				29,120
Investment securities:
Equity securities			8,220				1,847				177				9,890				9,890
Investments in trusts			1				—				—				1				1
			8,221				1,847				177				9,891				9,891

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

2. Held-to-maturity securities

As of March 31, 2008

		Yen (millions)
						Gross unrealized holding												Carrying
		Cost				Gains				Losses				Fair value				Amount
Marketable securities:
Debt securities			599				—				—				599				599
Investment securities:
Debt securities			1,748				—				71				1,677				1,748

As of March 31, 2009

		Yen (millions)
						Gross unrealized holding												Carrying
		Cost				Gains				Losses				Fair value				Amount
Marketable securities:
Debt securities			350				—				2				348				350
Investment securities:
Debt securities			1,399				1				52				1,348				1,399

Net sales by product categories

		Yen (millions)
		For the year ended								For the year ended								Increase
		March 31, 2008								March 31, 2009								(Decrease)
		Composition ratio								Composition ratio								(%)
Finished goods			296,279				86.5				251,619				85.6				(15.1	)
Parts, repairs and accessories			46,298				13.5				42,415				14.4				(8.4	)
Total net sales			342,577				100.0				294,034				100.0				(14.2	)

Overseas sales by product categories

		Yen (millions)
		For the year ended								For the year ended								Increase
		March 31, 2008								March 31, 2009								(Decrease)
		Composition ratio								Composition ratio								(%)
Finished goods			257,334				88.6				217,924				87.9				(15.3	)
Parts, repairs and accessories			33,050				11.4				29,888				12.1				(9.6	)
Total overseas sales			290,384				100.0				247,812				100.0				(14.7	)

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English Translation of “KESSAN TANSHIN” originally issued in Japanese

Information per share

		Yen
		As of				As of
		March 31, 2008				March 31, 2009
Shareholders’ equity per share			2,201.36				2,057.76

		Yen
		For the year ended				For the year ended
		March 31, 2008				March 31, 2009
Net income per share:
Basic			320.30				236.88