MAKITA CORPORATION
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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 November, 2006
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 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): 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)(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 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
A MESSAGE FROM THE PRESIDENT
CONSOLIDATED NET SALES BY GEOGRAPHIC AREA
PROFIT RATIO
PRODUCTION BY COUNTRY
NET INCOME PER SHARE
CASH DIVIDEND PER SHARE
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
OPERATING SEGMENT INFORMATION
CONDITION OF SHAREHOLDERS AND SHARES
CORPORATE DATA
INFORMATION ON SHARES

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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)
 
      /s/  Masahiko Goto 
   
 
        Masahiko Goto
President and Representative Director
 
Date: November 24, 2006

 

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((MAKITA LOGO)









Makita Corporation




The 95th Semiannual Report
for the six months
ended September 30, 2006
(U.S. GAAP Financial Information)





(English translation of “CHUKAN-KI JIGYOU NO GOHOUKOKU”

semiannual report originally issued in Japanese language

for the benefit and information of shareholders

of the Company’s common stock)

 

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((MAKITA LOGO)

A MESSAGE FROM THE PRESIDENT

We are pleased to present the results for Makita’s 95th interim period, ended September 30, 2006.

n   Consolidated net sales reached a record high for two consecutive terms.

     Regarding consolidated results of operations for the interim period under review, net sales rose 23.7% over the same period of the previous year, to 131,891 million yen. Sales in Japan rose 14.5% to 22,927 million yen compared with the same period of the previous year, as a result of the added sales from the air tools related business which Makita acquired in January of this year. Meanwhile, overseas sales posted a 25.8% increase to 108,964 million yen due primarily to the introduction of new products in response to the market needs, enhanced sales activities, expansion of emerging markets including the Eastern European and Russian markets, as well as the foreign exchange market that transitioned toward depreciation of the yen. As a result, overseas sales accounted for 82.6% of net sales for the period. Examining overseas sales by individual region, sales in Europe were up 35.3%, to 56,558 million yen, while sales in North America expanded 18.7%, to 24,513 million yen. Sales in Asia rose 15.4%, to 9,776 million yen, and sales in other regions increased 15.4%, to 18,117 million yen.

     With regard to earnings, operating income amounted to 21,387 million yen (ratio of operating income to net sales; 16.2%), down 17.4% from the same period of the previous year, income before income taxes amounted to 21,796 million yen (ratio of income before income taxes to net sales; 16.5%), down 17.8% and net income for the interim period amounted to 15,390 million yen (ratio of net income to net sales; 11.7%), down 40.4%. These decreases from the same period of the previous year were mainly due to a special factor of a gain from the sale of the Company’s golf course management subsidiary following the completion of the civil rehabilitation proceedings in May 2005. The gain of transfer of its ownership interests in the subsidiary resulted in approximately 8.5 billion yen in operating income and 11.9 billion yen in net income for the interim period of 2005.

n   Issues to Be Addressed

     As to our opinions on what lies ahead, while the domestic economy is expected to stay on a gradual recovery path, the price of raw materials does not allow for optimism. The outlook for the environment in which the company does business is somewhat opaque, considering the worldwide trend toward rising interest rates as well as some concerns over the outlook for both the American and the Asian economy.

     In light of this outlook, Makita will be striving to further improve its results by aggressively addressing such tasks as the continuous introduction of new products that will lead the industry, further improvement in the productivity of its Chinese factories, a smooth startup of the Romanian factory, which is Makita’s new production base, improvement in brand equity in the U.S., enhancement of the air tool category, etc.

 

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((MAKITA LOGO)

n   The Interim Dividends of 19 Yen Per Share

     Makita’s basic policy on the distribution of profits is to maintain a 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. For the interim period under review, Makita will pay a dividend of 19 yen per share of the same amount as the interim period of 2005, as announced in April 2006.

     Based on its dividend policy, Makita’s Board of Directors will decide on proposals for the dividend for the end of the fiscal year at their meeting to approve the financial statements after they are finalized near the end of April 2007. Their proposals will be presented for discussion and final approval at the Ordinary General Meeting of Shareholders.

     We look forward to the continuing support and cooperation of our shareholders.

     
    November 2006
 
 
    Masahiko Goto
President and Representative Director  

 

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((MAKITA LOGO)

CONSOLIDATED FINANCIAL HIGHLIGHTS

                                         
 
    Yen (millions)
    For the six
months ended		     For the six
months ended		     For the six
months ended		     Rate of     For the  
    September 30,     September 30,     September 30,     change     year ended  
    2004
     2005
     2006
     (%)
     March 31, 2006
  
Net sales
     97,430       106,649       131,891       23.7       229,075  
Operating income
     19,464       25,897       21,387       (17.4 )     45,778  
Operating income to net sales ratio (%)
     20.0       24.3       16.2               20.0  
Income before income taxes
     20,238       26,504       21,796       (17.8 )     49,143  
Net income
     12,953       25,807       15,390       (40.4 )     40,411  
Net income to net sales ratio (%)
     13.3       24.2       11.7               17.6  
                                       
   
   
   
   
   
 
    As of
September 30,		     As of
September 30,		     As of
September 30,		     Rate of
change		     As of  
    2004
     2005
     2006
     (%)
     March 31, 2006
  
Shareholders’ equity
     211,721       245,579       279,374       13.8       266,584  
Total assets
     291,842       298,978       340,176       13.8       326,038  
Shareholders’ equity ratio to total assets (%)
     72.5       82.1       82.1               81.8  
                                       
   
   
   
   
   
 
    For the
six months		     For the
six months		     For the
six months		     Rate of     For the  
    ended September 30,     ended September 30,     ended September 30,     change     year ended  
    2004
     2005
     2006
     (%)
     March 31, 2006
  
Capital expenditures
     2,071       4,856       4,873       0.4       11,383  
Depreciation and amortization
     2,664       2,658       3,715       39.8       5,922  
R&D cost
     2,222       2,345       2,605       11.1       4,826  
Employees (Jobs)
     8,598       8,557       9,077       6.1       8,629  
Average number of shares outstanding (Shares)
     143,874,488       143,757,513       143,709,479               143,736,927  
Net income per share (Yen)
     90.0       179.5       107.1       (40.3 )     281.2  
Cash dividend per share (Yen)
     11.0       19.0       19.0               57.0  
 

Notes:

1.   Consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States.
2.   In principle, amounts of less than 1 million yen have been rounded.

 

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((MAKITA LOGO)

CONSOLIDATED NET SALES BY GEOGRAPHIC AREA

                                         
 
    Yen (billions)
    For the six months ended
    September     March 31,     September     March 31,     September  
    30, 2004
     2005
     30, 2005
     2006
     30, 2006
  
Japan
     19.0       20.4       20.0       21.6       22.9  
North America
     19.7       18.8       20.6       27.0       24.5  
Europe
     36.4       38.8       41.8       48.7       56.6  
Asia
     9.3       7.0       8.5       8.5       9.8  
Other regions
     13.0       12.3       15.7       16.6       18.1  
 
  
 		    
 		    
 		    
 		    
 		  
Total
     97.4       97.3       106.6       122.4       131.9  
 
  
 		    
 		    
 		    
 		    
 		  
 
Note:    The table above sets forth Makita’s consolidated net sales by geographic area based on customer location for the periods presented.

PROFIT RATIO

                                         
 
    %
    For the six months ended
    September     March 31,     September     March 31,     September  
    30, 2004
     2005
     30, 2005
     2006
     30, 2006
  
Operating income to net sales ratio
     20.0       12.3       24.3       16.2       16.2  
Net income to net sales ratio
     13.3       9.4       24.2       11.9       11.7  
 

PRODUCTION BY COUNTRY

                                         
 
    Million units
    For the six months ended
    September     March 31,     September     March 31,     September  
    30, 2004
     2005
     30, 2005
     2006
     30, 2006
  
Japan
     2.22       1.63       2.03       2.15       2.43  
U.S.A.
     0.66       0.51       0.54       0.52       0.44  
U.K
     0.61       0.68       0.71       0.66       0.80  
China
     3.13       3.26       3.28       3.29       4.53  
Other
     0.42       0.45       0.48       0.55       0.54  
 
  
 		    
 		    
 		    
 		    
 		  
Total
     7.04       6.53       7.04       7.17       8.74  
 
  
 		    
 		    
 		    
 		    
 		  
 

 

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((MAKITA LOGO)

SHAREHOLDERS’ EQUITY PER SHARE

                                         
 
    Yen
    As of
    September     March 31,     September     March 31,     September  
    30, 2004
     2005
     30, 2005
     2006
     30, 2006
  
Shareholders’ equity per share
     1,472       1,528       1,709       1,855       1,944  
 

NET INCOME PER SHARE

                         
 
    Yen
    For the year ended     For the year ended     For the year ending  
    March 31, 2005
     March 31, 2006
     March 31, 2007
  
Net income per share for the interim period
     90.0       179.5       107.1  
Net income per share for the year
     153.9       281.2       -  
 

CASH DIVIDEND PER SHARE

                         
 
    Yen
    For the year ended     For the year ended     For the year ending  
    March 31, 2005
     March 31, 2006
     March 31, 2007
  
Cash dividend per share for the interim period
     11       19       19  
Total cash dividend per share for the year
     47       57       -  
 

 

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((MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS

                         
 
    Yen (millions)
  
    As of     As of     Increase  
    March 31, 2006
     September 30, 2006
     (Decrease)
  
ASSETS
                        
CURRENT ASSETS:
                        
Cash and cash equivalents
     39,054       35,302       (3,752 )
Time deposits
     1,845       4,987       3,142  
Marketable securities
     47,773       52,693       4,920  
Trade receivables-
                        
Notes
     1,936       2,666       730  
Accounts
     46,074       46,969       895  
Less- Allowance for doubtful receivables
     (1,016 )     (1,038 )     (22 )
Inventories
     79,821       88,700       8,879  
Deferred income taxes
     3,661       3,967       306  
Prepaid expenses and other current assets
     8,621       8,572       (49 )
 
  
 		    
 		    
 		  
Total current assets
     227,769       242,818       15,049  
 
  
 		    
 		    
 		  
 
                        
PROPERTY, PLANT AND EQUIPMENT, at cost:
                        
Land
     17,737       16,733       (1,004 )
Buildings and improvements
     55,470       55,508       38  
Machinery and equipment
     74,501       74,109       (392 )
Construction in progress
     2,340       3,030       690  
 
  
 		    
 		    
 		  
 
     150,048       149,380       (668 )
Less- Accumulated depreciation
     (90,845 )     (89,803 )     1,042  
 
  
 		    
 		    
 		  
 
     59,203       59,577       374  
 
  
 		    
 		    
 		  
 
                        
INVESTMENTS AND OTHER ASSETS:
                        
Investment securities
     30,439       28,008       (2,431 )
Deferred income taxes
     698       559       (139 )
Other assets
     7,929       9,214       1,285  
 
  
 		    
 		    
 		  
 
     39,066       37,781       (1,285 )
 
  
 		    
 		    
 		  
 
     326,038       340,176       14,138  
 
  
 		    
 		    
 		  
 

 

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((MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS

                         
 
    Yen (millions)
    As of     As of     Increase  
    March 31, 2006
     September 30, 2006
     (Decrease)
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
CURRENT LIABILITIES:
                        
Short-term borrowings
     1,728       3,396       1,668  
Trade notes and accounts payable
     13,908       14,672       764  
Accrued payroll
     8,224       8,333       109  
Accrued expenses and other
     15,224       14,394       (830 )
Income taxes payable
     6,701       7,515       814  
Deferred income taxes
     176       129       (47 )
 
  
 		    
 		    
 		  
Total current liabilities
     45,961       48,439       2,478  
 
  
 		    
 		    
 		  
 
                        
LONG-TERM LIABILITIES:
                        
Long-term indebtedness
     104       100       (4 )
Accrued retirement and termination allowances
     2,901       3,264       363  
Deferred income taxes
     7,923       6,233       (1,690 )
Other liabilities
     930       1,015       85  
 
  
 		    
 		    
 		  
 
     11,858       10,612       (1,246 )
 
  
 		    
 		    
 		  
 
                        
MINORITY INTERESTS
     1,635       1,751       116  
 
  
 		    
 		    
 		  
 
                        
COMMITMENTS AND CONTINGENT LIABILITIES
     -       -       -  
 
                        
SHAREHOLDERS’ EQUITY:
                        
Common stock
     23,805       23,805       -  
Additional paid-in capital
     45,437       45,437       -  
Legal reserve and retained earnings
     192,255       202,184       9,929  
Accumulated other comprehensive income
     5,345       8,223       2,878  
Treasury stock, at cost
     (258 )     (275 )     (17 )
 
  
 		    
 		    
 		  
 
     266,584       279,374       12,790  
 
  
 		    
 		    
 		  
 
     326,038       340,176       14,138  
 
  
 		    
 		    
 		  
 

Note:  Consolidated subsidiaries: 45 subsidiaries as of March 31, 2006 and September 30, 2006

 

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((MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                 
 
    Yen (millions)
    For the six months     For the six months      
    ended September 30,     ended September 30,     Increase
    2005
     2006
     (Decrease)
                    (Amount)     (%)  
                         
NET SALES
     106,649       131,891       25,242       23.7  
Cost of sales
     61,554       77,343       15,789       25.7  
 
  
 		    
 		    
 		    
 		  
GROSS PROFIT
     45,095       54,548       9,453       21.0  
Selling, general, administrative and other expenses
     19,198       33,161       13,963       72.7  
 
  
 		    
 		    
 		    
 		  
OPERATING INCOME
     25,897       21,387       (4,510 )     (17.4 )
 
  
 		    
 		    
 		    
 		  
 
                                
OTHER INCOME (EXPENSES) :
                                
Interest and dividend income
     548       569       21       3.8  
Interest expense
     (233 )     (163 )     70       (30.0 )
Exchange gains (losses) on foreign currency transactions, net
     4       (193 )     (197 )     -  
Realized gains on securities, net
     360       311       (49 )     (13.6 )
Other, net
     (72 )     (115 )     (43 )     59.7  
 
  
 		    
 		    
 		    
 		  
Total
     607       409       (198 )     (32.6 )
 
  
 		    
 		    
 		    
 		  
INCOME BEFORE INCOME TAXES
     26,504       21,796       (4,708 )     (17.8 )
 
  
 		    
 		    
 		    
 		  
 
                                
PROVISION FOR INCOME TAXES:
                                
Current
     6,419       7,230       811       12.6  
Deferred
     (5,722 )     (824 )     4,898       (85.6 )
 
  
 		    
 		    
 		    
 		  
Total
     697       6,406       5,709       819.1  
 
  
 		    
 		    
 		    
 		  
NET INCOME
     25,807       15,390       (10,417 )     (40.4 )
 
  
 		    
 		    
 		    
 		  
 

 

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((MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

                 
 
    Yen (millions)
    For the six months     For the six months  
    ended September 30,     ended September 30,  
    2005
     2006
  
CASH FLOWS FROM OPERATING ACTIVITIES:
                
Net income
     25,807       15,390  
Adjustments to reconcile net income to net cash provided by operating activities-
     (16,458 )     (1,971 )
Depreciation and amortization
     2,658       3,715  
Deferred income taxes
     (5,722 )     (824 )
Realized gains on securities, net
     (360 )     (311 )
Losses (gains) on disposals or sales of property, plant and equipment
     (8,598 )     464  
Impairment of long-lived assets
     -       1,131  
Changes in assets and liabilities-
                
Trade receivables
     14       (325 )
Inventories
     (5,581 )     (6,365 )
Trade notes and accounts payables and accrued expenses
     1,192       359  
Income taxes payable
     220       100  
Accrued retirement and termination benefits
     (270 )     (911 )
Other, net
     (11 )     996  
 
  
 		    
 		  
Net cash provided by operating activities
     9,349       13,419  
 
  
 		    
 		  
CASH FLOWS FROM INVESTING ACTIVITIES:
                
Capital expenditures
     (4,856 )     (4,873 )
Purchases of available-for-sale securities
     (13,297 )     (14,046 )
Purchases of held-to-maturity securities
     (1,799 )     (200 )
Proceeds from sales and maturities of available-for-sale securities
     21,742       8,108  
Proceeds from maturities of held-to-maturity securities
     -       1,100  
Proceeds from sales of property, plant and equipment
     800       60  
Decrease (increase) in time deposits
     3,959       (3,046 )
Cash paid for acquisition of business
     -       (649 )
Other, net
     (373 )     (657 )
 
  
 		    
 		  
Net cash provided by (used in) investing activities
     6,176       (14,203 )
 
  
 		    
 		  
CASH FLOWS FROM FINANCING ACTIVITIES:
                
Increase (decrease) in short-term borrowings
     (2,687 )     1,609  
Repayment of long-term indebtedness
     (150 )     -  
Repayment of club members’ deposits
     (6,375 )     -  
Purchases and sales of treasury stock, net
     (117 )     (17 )
Cash dividends paid
     (5,176 )     (5,461 )
Other, net
     (35 )     (109 )
 
  
 		    
 		  
Net cash used in financing activities
     (14,540 )     (3,978 )
 
  
 		    
 		  
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
     (76 )     1,010  
 
  
 		    
 		  
NET CHANGE IN CASH AND CASH EQUIVALENTS
     909       (3,752 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
     25,384       39,054  
 
  
 		    
 		  
CASH AND CASH EQUIVALENTS, END OF PERIOD
     26,293       35,302  
 
  
 		    
 		  
 

 

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English Translation of “CHUKAN-KI JIGYOU NO GOHOUKOKU” originally issued in Japanese language

Table of Contents

((MAKITA LOGO)

OPERATING SEGMENT INFORMATION

Six months ended September 30, 2005

                                                                 
 
    Yen (millions)
                    North                             Corporate and     Consoli-  
    Japan
     Europe
     America
     Asia
     Other
     Total
     eliminations
     dated
  
Sales:
                                                                
(1) External customers
     25,874       42,218       20,798       4,197       13,562       106,649       -       106,649  
(2) Intersegment
     25,208       3,433       1,589       19,601       96       49,927       (49,927 )     -  
 
  
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  
Total
     51,082       45,651       22,387       23,798       13,658       156,576       (49,927 )     106,649  
 
  
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  
Operating expenses
     35,779       39,791       21,818       20,775       12,171       130,334       (49,582 )     80,752  
Operating income
     15,303       5,860       569       3,023       1,487       26,242       (345 )     25,897  
Identifiable assets
     231,482       75,882       36,077       35,887       20,020       399,348       (100,370 )     298,978  
 

Six months ended September 30, 2006

                                                                 
 
    Yen (millions)
                    North                             Corporate and     Consoli-  
    Japan
     Europe
     America
     Asia
     Other
     Total
     eliminations
     dated
  
Sales:
                                                                
(1) External customers
     30,497       57,050       24,386       4,864       15,094       131,891       -       131,891  
(2) Intersegment
     30,883       2,763       2,704       32,482       88       68,920       (68,920 )     -  
 
  
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  
Total
     61,380       59,813       27,090       37,346       15,182       200,811       (68,920 )     131,891  
 
  
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  
Operating expenses
     53,462       52,062       26,001       31,975       13,457       176,957       (66,453 )     110,504  
Operating income
     7,918       7,751       1,089       5,371       1,725       23,854       (2,467 )     21,387  
Identifiable assets
     247,919       94,315       42,314       45,929       23,975       454,452       (114,276 )     340,176  
 

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

 

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Table of Contents

(MAKITA LOGO)

CONDITION OF SHAREHOLDERS AND SHARES

(As of September 30, 2006)

     
Total number of shares authorized
   496,000,000 shares
 
    
Total number of shares outstanding
   144,008,760 shares
 
    
Number of shareholders
   12,094 (248 reduction compared with as of March 31, 2006)
 
    
10 largest shareholders
   

                 
Name of shareholder
   Number of shares held
    Units (thousand)
     %
  
Japan Trustee Services Bank, Ltd. (Trust account)
     11,504       7.99  
The Master Trust Bank of Japan, Ltd. (Trust account)
     8,413       5.84  
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
     5,213       3.62  
Northern Trust Company (AVFC) Sub-account American Client
     4,750       3.30  
The Chase Manhattan Bank, N.A. London
     4,518       3.14  
Makita Cooperation Companies’ Investment Association
     3,885       2.70  
Nippon Life Insurance Company
     3,713       2.58  
Maruwa Co., Ltd.
     3,209       2.23  
Sumitomo Mitsui Banking Corporation
     2,900       2.01  
Hero & Co.
     2,579       1.79  
 
  
 		    
 		  
Total
     50,685       35.20  
 
  
 		    
 		  
 
Note:   Hero & Co. is the nominal holder of the shares of The Bank of New York, the trustee bank for the Company’s American Depositary Shares.

Distribution of share-ownership

                 
Class of shareholder
   Number of shares held
    Units
     %
  
Financial institutions and securities firms
     55,602,215       38.6  
Japanese individuals and other
     25,745,660       17.9  
Foreign investors
     44,771,443       31.1  
Other Japanese business corporations
     17,587,923       12.2  
Treasury stock
     301,519       0.2  

                 
Class of shareholder
   Number of shareholders
    Units
     %
  
Financial institutions and securities firms
     148       1.2  
Japanese individuals and other
     11,214       92.7  
Foreign investors
     373       3.1  
Other Japanese business corporations
     358       3.0  
Treasury stock
     1       0.0  
 

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English Translation of “CHUKAN-KI JIGYOU NO GOHOUKOKU” originally issued in Japanese language

 

Table of Contents

(MAKITA LOGO)

Price per share and volume of shares traded on The Tokyo Stock Exchange

                                                 
    2006
    April
     May
     June
     July
     August
     September
  
High (yen)
     3,720       3,830       3,670       3,830       3,730       3,600  
Low (yen)
     3,290       3,260       2,995       3,460       3,380       3,210  
Volume (thousand shares)
     6,959       15,568       20,614       12,138       14,437       11,083  
 
         
Note:   The highest price, lowest price, and total volume of shares traded on The Tokyo Stock Exchange for the six months ended September 30, 2006 were as follows:
 
  The highest price per share:   3,830 yen marked on May 11 and July 10, 2006
 
  The lowest price per share:   2,995 yen marked on June 14, 2006
 
  Total volume of shares traded:   80,798 thousand shares

Basic policy regarding profit distribution

     Makita’s basic policy on the distribution of profits is to maintain a 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.

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(MAKITA LOGO)

CORPORATE DATA

(As of September 30, 2006)

Makita Corporation

3-11-8, Sumiyoshi-cho, Anjo, Aichi 446-8502, Japan
Phone: (0566) 98-1711
Website: http://www.makita.co.jp/global/
         
Date of founding   March 21, 1915
 
        
Date of incorporation   December 10, 1938
 
        
Paid-in Capital   24,206 million yen (non-consolidated)
 
        
Description of business   Production and sales of electric power tools, air tools, garden tools and household tools
 
        
Number of consolidated subsidiaries   45 (Domestic 3, Overseas 42)
 
        
Plants   Three in Japan, seven outside of Japan (two in China, and one each in the United States, Canada, Brazil, the United Kingdom, and Germany), and under construction of a new plant in Romania
 
        
Employees   9,077 (consolidated)
    3,007 (non-consolidated)
 
        
Board of Directors
        
President and Representative Director
  Masahiko Goto    
 
        
Managing Director
  Masami Tsuruta   (General Manager of Domestic Sales Marketing Headquarters)
 
        
Directors
  Yasuhiko Kanzaki   (General Manager of International Sales Headquarters:
 
      Europe Area)
 
        
 
  Kenichiro Nakai   (General Manager of Administration Headquarters)
 
        
 
  Tadayoshi Torii   (General Manager of Production Headquarters)
 
        
 
  Tomoyasu Kato   (General Manager of Development and Engineering Headquarters)
 
        
 
  Kazuya Nakamura   (General Manager of International Sales Headquarters:
 
      Asia and Oceania Area)
 
        
 
  Masahiro Yamaguchi   (General Manager of Purchasing Headquarters)
 
        
 
  Shiro Hori   (General Manager of International Sales Headquarters:
 
      America Area and International Administration)
 
        
 
  Tadashi Asanuma   (Assistant General Manager of Domestic Sales Marketing Headquarters)
 
        
 
  Hisayoshi Niwa   (General Manager of Quality Headquarters)
 
        
 
  Zenji Mashiko   (Assistant General Manager of Domestic Sales Marketing Headquarters)
 
        
Outside Director 
  Motohiko Yokoyama   (Vice President and Representative Director of JTEKT Corporation)
Board of Statutory Auditors
        
Standing Statutory Auditor
  Akio Kondo    
 
        
 
  Hiromichi Murase    
 
        
Statutory Auditor
  Keiichi Usui   (Outside Auditor)
 
        
 
  Shoichi Hase   (Outside Auditor, Patent Attorney)
 
Independent Registered Public Accounting Firm    
KPMG AZSA & Co.
        

 

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(MAKITA LOGO)

INFORMATION ON SHARES

(As of September 30, 2006)

     
Fiscal period
  From April 1 to March 31 of each year
 
    
Ordinary general meeting of shareholders
  June of each year
 
    
Number of shares constituting one unit
  100 shares
 
    
Record dates
  1) Ordinary general meeting of shareholders and cash dividend for the second half
 
 
March 31 of each year
 
    
 
  2) Cash dividend for the interim period
 
 
September 30 of each year
 
    
Transfer agent of common stock
  The Chuo Mitsui Trust and Banking Company, Limited
33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan
 
    
Its handling office
  The Chuo Mitsui Trust and Banking Company, Limited
 
  Nagoya Branch Office
 
  15-33, Sakae 3-chome, Naka-ku, Nagoya, Aichi 460-8685, Japan
 
  Website: http://www.chuomitsui.co.jp/person/p_06.html
 
    
Its liaison offices
  Head office and nationwide branch offices of The Chuo Mitsui Trust and Banking Company, Limited
 
  Head office and nationwide branch offices of Japan Securities Agents, Ltd.
 
    
Means of public notice
  Website: http://www.makita.co.jp/ir/index1.htm
 
    
Common stock listings
  Domestic          Tokyo and Nagoya stock exchanges (stock code: 6586)
 
  Overseas          American Depositary Receipts: The Nasdaq Global Select Market

 

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English Translation of “CHUKAN-KI JIGYOU NO GOHOUKOKU” originally issued in Japanese language