MAKITA CORPORATION | ||
(Registrant) |
By : | /s/ Masahiko Goto | |||||
Masahiko Goto | ||||||
President and Representative Director |
Yen (million) | ||||||||||||||||||||||||
For the six months | For the six months | |||||||||||||||||||||||
ended September | ended September | For the year ended | ||||||||||||||||||||||
30, 2006 | 30, 2007 | March 31, 2007 | ||||||||||||||||||||||
% | % | % | ||||||||||||||||||||||
Net sales |
131,891 | 23.7 | 169,537 | 28.5 | 279,933 | 22.2 | ||||||||||||||||||
Operating income |
21,387 | (17.4 | ) | 33,899 | 58.5 | 48,176 | 5.2 | |||||||||||||||||
Income before income taxes |
21,796 | (17.8 | ) | 34,468 | 58.1 | 49,323 | 0.4 | |||||||||||||||||
Net income |
15,390 | (40.4 | ) | 23,596 | 53.3 | 36,971 | (8.5 | ) | ||||||||||||||||
Yen | ||||||||||||||||||||||||
Net income per share: |
||||||||||||||||||||||||
Basic |
107.09 | 164.17 | 257.27 | |||||||||||||||||||||
Diluted |
107.09 | 164.17 | 257.27 |
Notes: | 1. | Equity in net earnings of affiliated companies (including non-consolidated subsidiaries): NIL |
2. | The table above shows the change in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year. |
Yen (million) | ||||||||||||
As of | As of | As of | ||||||||||
September 30, 2006 | September 30, 2007 | March 31, 2007 | ||||||||||
Total assets |
340,176 | 393,148 | 368,494 | |||||||||
Shareholders equity |
279,374 | 320,144 | 302,675 | |||||||||
Shareholders equity ratio to total assets (%) |
82.1 | % | 81.4 | % | 82.1 | % | ||||||
Yen | ||||||||||||
Shareholders equity per share |
1,944.05 | 2,226.68 | 2,106.28 |
Yen (million) | ||||||||||||
For the six months | For the six months | For the year | ||||||||||
ended September | ended September | ended March 31, | ||||||||||
30, 2006 | 30, 2007 | 2007 | ||||||||||
Net cash provided by operating activities |
13,419 | 13,803 | 32,360 | |||||||||
Net cash used in investing activities |
(14,203 | ) | (4,950 | ) | (27,276 | ) | ||||||
Net cash used in financing activities |
(3,978 | ) | (10,047 | ) | (8,307 | ) | ||||||
Cash and cash equivalents, end of period |
35,302 | 35,686 | 37,128 |
1
Yen | ||||||||
For the year ended | For the year ending | |||||||
March 31, 2007 | March 31, 2008 | |||||||
Cash dividend per share: |
||||||||
Interim |
19.00 | 30.00 | ||||||
Year-end |
55.00 | (Note) | ||||||
Total |
74.00 | (Note) |
Note: | Regarding our forecast for dividends, refer to page 6. |
Yen (million) | ||||||||
For the year ending March 31, 2008 | ||||||||
Net sales |
330,000 | 17.9 | ||||||
Operating income |
62,000 | 28.7 | ||||||
Income before income taxes |
62,500 | 26.7 | ||||||
Net income |
42,800 | 15.8 | ||||||
Yen | ||||||||
Net income per share |
297.68 |
(1) | Changes in important subsidiaries during the term (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None. |
Consolidation
|
(Newly included) | 2 subsidiaries (Makita Numazu Corporation, etc.) | ||
2 equity method affiliates |
Note: | The name of Makita Numazu Corporation was changed from Fuji Robin Industries Ltd. on August 1, 2007. |
(2) | Changes in principle, procedure and representation of the accounting policies concerning consolidated financial statement creation (Changes indicated to CHANGE OF SIGNIFICANT ACCOUNTING POLICIES): None. |
(3) | Number of shares outstanding (common stock) |
1. | Number of shares issued (including treasury stock): |
As of September 30, 2006: |
144,008,760 | |||
As of September 30, 2007: |
144,008,760 | |||
As of March 31, 2007: |
144,008,760 |
2. | Number of treasury stock: |
As of September 30, 2006: |
301,519 | |||
As of September 30, 2007: |
232,286 | |||
As of March 31, 2007: |
307,481 |
Note: | Regarding number of shares used as the basis for calculation of net income per share, please see page 22 Information per share. |
2
3
| We will continue to develop new products that are high in value added, and new products that are responsive to a wide range of user requirements. | ||
| Advances will be made in globalizing production by expansion of plants in China, Romania and Brazil. | ||
| We will further strengthen our sales capability by use of our global sales and after-service network. | ||
| We will further develop our business relationships with large-scale retailers in the United States, where the market will slacken, and will work to increase our brand value. |
| There will be a decline in new housing starts in Japan, and the demand environment will become less friendly. | ||
| In Western Europe where the market has been firm, we detect some murkiness in the market environment, and expect an intensification of inter-firm competition. | ||
| The growth rates in the Eastern Europe and Russian markets, where rates were high owing to the warm winter last year, will slacken. | ||
| Demand will expand in emerging markets such as that of Central and South America, the Middle East and Africa. | ||
| In some Asian countries political circumstances will depress demand. | ||
| Exchange rates will shift the appreciation of the yen. |
(Million yen, %) | ||||||||||||||||
Income before | ||||||||||||||||
Net sales | Operating income | income taxes | Net income | |||||||||||||
Financial outlook announced
previously (A) |
320,000 | 56,500 | 57,800 | 39,700 | ||||||||||||
Revised financial outlook (B) |
330,000 | 62,000 | 62,500 | 42,800 | ||||||||||||
Change (B-A) |
10,000 | 5,500 | 4,700 | 3,100 | ||||||||||||
Percentage revision |
3.1 | % | 9.7 | % | 8.1 | % | 7.8 | % | ||||||||
Actual results for the previous year
ended March 31, 2007 |
279,933 | 48,176 | 49,323 | 36,971 |
4
As of | ||||||||||||||||||||
As of (year ended) March 31, | September | |||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 30, 2007 | ||||||||||||||||
Operating income to net sales ratio |
8.0 | % | 16.1 | % | 20.0 | % | 17.2 | % | 20.0 | % | ||||||||||
Equity ratio |
69.5 | % | 75.8 | % | 81.8 | % | 82.1 | % | 81.4 | % | ||||||||||
Equity ratio based on a current market price |
69.3 | % | 97.1 | % | 160.0 | % | 170.4 | % | 184.3 | % | ||||||||||
Debt redemption (years) |
0.7 | 0.5 | 0.1 | 0.1 | 0.1 | |||||||||||||||
Interest coverage ratio (times) |
47.8 | 28.4 | 54.7 | 102.4 | 83.2 |
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. | ||
4. | The debt redemption period for the interim period is calculated based on an estimate of operating cash flows computed by multiplying operating cash flow for the interim period by two. |
5
For the year ended | For the year ending | |||
March 31, 2007 | March 31, 2008 | |||
Cash dividend per share for the interim period
|
19 yen | 30 yen (Note 1) | ||
Cash dividend per share for the second half
|
55 yen | (Note 2) | ||
Total cash dividend per share for the year
|
74 yen (Note 3) | (Note 2) |
1. | As stated in the Announcement of Revisions in Interim Dividend Forecast for the Fiscal Year Ending March 2008 released today, it was resolved at the meeting of the Board of Directors held on October 31, 2007 that interim dividends would be 30 yen per share (payable on November 26, 2007). | |
2. | The Board of Directors plans to meet in April 2008 for a report on earnings for the year ending March 31, 2008. 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 the net income. The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2008. However, if certain special circumstances arise, computation of the amount of dividends will be based on consolidated net income after certain adjustments. | |
3. | Because the reversal of valuation allowances for deferred income tax assets at the Companys American subsidiary was treated as a special circumstance, net income for the period increased by approximately 1.7 billion yen. This special circumstance was not taken into account when calculating the amount to be paid as dividends. | |
4. | 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 100 is multiplied. |
6
(1) | Makitas sales is affected by the levels of construction activities and capital investments in its markets. | ||
The demand for power tools, Makitas main products, is affected to a large extent by the levels of construction activities and capital investments in the relevant regions. Generally speaking, the levels of construction activities and capital investment depend largely on the economic conditions in the market. As a result, when economic conditions weaken in the principal markets for Makitas activities, including Japan, Europe, North America, Asia, Central and South America, the Middle East, Africa, and Oceania, this may have an adverse impact on Makitas consolidated financial condition and results of operations. |
(2) | Currency exchange rate fluctuations may adversely affect Makitas financial results. | ||
The functional currency for all of Makitas significant foreign operations is the local currency. The results of transactions denominated in local currencies of Makitas subsidiaries around the world are translated into yen using the average market conversion rate during each financial period. Assets and liabilities denominated in local currencies are converted into yen at the rate prevailing at the end of each financial period. As a result, Makitas operating results, assets, liabilities and shareholders equity are affected by fluctuation in values of the Japanese yen against these local currencies. In an effort to minimize the impact of short-term exchange rate fluctuations between major currencies, mainly the U.S. dollar, the euro, and the yen, Makita engages in hedging transactions. However, medium-to-long-term fluctuations of exchange rates may make it difficult for Makita to execute procurement, production, logistics, and sales activities as planned and may have an adverse impact on Makitas consolidated financial condition and results of operations. |
(3) | Makita faces intense competition in the global market for its power tools for professional use. | ||
The global market for power tools for professional use is highly competitive. Factors that affect competition in the markets for Makitas products include the quality, functionality of products, technological developments, the pace of new product development, price, reliability, durability, after-sales service and the rise of new competitors. While Makita strives to ensure its position as a leading international supplier of power tools for professional use, there is no guarantee that it will be able to compete effectively in the future. If Makita is unable to compete effectively, it may lose market share and its earnings may be adversely affected. Moreover, if Makita is unable to compete effectively, Makitas sales volumes may decrease and inventories may increase, resulting in a downward pressure on the prices for Makitas products, which in turn could have an adverse impact on Makitas consolidated financial condition and results of operations. |
(4) | If Makita is not able to develop attractive products, Makitas sales activities may be adversely affected. | ||
Makitas principal competitive strengths are its diverse range of high-quality, high-performance power tools for professional use, and the strong reputation of the MAKITA brand, both of which depend in part on Makitas ability to continue to develop attractive and innovative products that are well received by the market. There is no assurance that Makita will be able to continue to develop such products. If Makita is no longer able to quickly develop new products that meet the changing needs of the market for high-end, professional users, it may have an adverse impact on Makitas consolidated financial condition and results of operations. | |||
7
(5) | Geographic concentration of Makitas main facilities may have adverse effects on Makitas business activities. | ||
Makitas principal management functions, including its headquarters, and the companies on which it relies for supplying major parts are located in Aichi Prefecture (Aichi), Japan. Makitas manufacturing facilities in Aichi and Kunshan, Jiangsu Province, China, collectively account for approximately 80% of Makitas total production volume on a consolidated basis during the interim period under review. Due to this geographic concentration of Makitas major functions, including plants and other operations in Japan and China, Makitas performance may be significantly affected by major natural disasters and other catastrophic events, including earthquakes, floods, fires, power outages, and suspension of water supplies. In addition, Makitas facilities in China may also be affected by changes in political and legal environments, changes in economic conditions, revisions in tariff rates, currency appreciation, labor disputes, emerging infectious diseases, power outages resulting from inadequacies in infrastructure, and other factors. In the event that such developments cannot be foreseen or measures taken to alleviate their damaging impact are inadequate, Makitas consolidated financial condition and results of operations may be adversely affected. | |||
(6) | Makitas overseas activities and entry into overseas markets entail risks, which may have a material adverse effect on Makitas business activities. | ||
Makita derives a majority of its sales in markets located outside of Japan, including Europe, North America, Asia, Oceania, the Middle East, Central and South America, and emerging markets such as Russia and Eastern Europe. During the interim period under review, approximately 85% of Makitas consolidated net sales were derived from products sold overseas. The high percentage of overseas sales gives rise to a number of risks. If such risks occur, they may have a material adverse impact on Makitas consolidated financial condition and results of operations. Such risks include the following: |
1. | Unexpected changes in laws and regulations; | ||
2. | Disadvantageous political and economic factors; | ||
3. | The outflow of technical know-how and knowledge due to personnel turnover enabling Makitas competitors to strengthen their position; | ||
4. | Potentially unfavorable tax systems; and |
||
5. | Terrorism, war, and other factors that lead to social turbulence. |
(7) | If Makita fails to maintain cooperative relationships with significant customers, Makitas sales may be seriously affected. | ||
Makita has a number of significant customers. If Makita loses these customers and is unable to develop new sales channels to take their place, sales may decline and have an adverse impact on Makitas business performance and financial position. In addition, if major customers of Makita select power tools and other items made in China and sell them under their own brand, this may have an adverse impact on Makitas consolidated financial condition and results of operations. | |||
(8) | If any of Makitas suppliers fail to deliver materials or parts required for production as scheduled, Makitas production activities may be adversely affected. | ||
Makitas production activities are greatly dependent on the on-schedule delivery of materials and parts from its suppliers. Purchases of production-use materials from Chinese manufacturers have increased in recent years. When launching new products, sales commencement dates can slip if Chinese manufacturing technology does not satisfy our demands, or if it takes an inordinate amount of time in order to satisfy our demands. There is a concern that this can result in lost sales opportunities. Makita purchases some of its component parts from sole suppliers. There is no assurance that Makita will be able to find alternate suppliers that can provide materials and parts of similar quality and price in a sufficient quantity and in a timely manner. In the event that any of these suppliers cannot deliver the required quality and quantity of parts on schedule, this will have an adverse effect on Makitas production schedules and cause a delay in Makitas own product deliveries. This may cause Makita to lose some customers or require Makita to purchase replacement materials or parts from alternate sources at a higher price. Any of these occurrences may have a detrimental effect on Makitas consolidated financial condition and results of operations. | |||
8
(9) | When the procurement of raw materials used by Makita becomes difficult or prices of these raw materials rise sharply, this may have an adverse impact on performance. | ||
In manufacturing power tools, Makita purchases raw materials and components, including silicon steel plates, aluminum, steel products, copper wire, and electronic parts. In recent years, demand for these materials in China and the rest of the world has risen substantially, and some suppliers are experiencing a shortage of capacity. Under these circumstances, if the Makita is unable to obtain the necessary quantities of these materials, this may have an effect on production schedules. In addition, the shortage of capacity among suppliers is a factor leading to increased prices of production materials. If the Makita experiences increases in prices of production materials, greater than what can be absorbed by increased productivity or through other internal efforts and prices of final products cannot be raised sufficiently, such circumstance may have a detrimental impact on the performance and financial position of the Makita. | |||
(10) | Product liability litigation or recalls may harm Makitas financial statements and reputation. | ||
Makita manufactures a wide range of power tools at factories worldwide according to ISO internationally accepted quality control standards. However, Makita cannot be certain that all of its products will be free of defects nor that it will be subject to product recalls in the future. A large-scale recall or a substantial product liability suit brought against Makita may result in severe damage to Makitas brand image and reputation. In addition, a major product recall or product liability lawsuit is likely to be very costly and would require a significant amount of management time and attention. Any of these occurrences may have a major adverse impact on Makitas consolidated financial condition and results of operations. | |||
(11) | Fluctuations in stock market prices may adversely affect Makitas financial statements. | ||
Makita holds certain Japanese equity securities and equity-linked financial instruments, and classified them as available-for-sale securities on its consolidated financial statements. The values of these investments are influenced by fluctuations in the quoted market prices. A significant depreciation in the value of these securities will have an adverse impact on Makitas consolidated financial condition and results of operations. | |||
(12) | Makita may be unable to protect its intellectual property rights and could suffer significant liabilities, litigation costs or licensing expenses or be prevented from selling its products if it is infringing the intellectual property of third parties. | ||
Makita relies on patents, utility models, design rights, trademarks and copyrights obtained in various countries to actively protect its proprietary rights. However, in general, it is difficult for Makita to detect, and investigate, the products believed to infringe its intellectual property rights and therefore Makita cannot ensure that its intellectual property rights will provide meaningful protection of its proprietary rights. In addition, Makita may be unknowingly infringing the intellectual property rights of third parties and may be held responsible for that infringement, which may require Makita to pay significant damages or license fees or modify its products or processes, stop making products or stop using processes. If such risks occur, they may have a material adverse impact in Makitas consolidated financial condition and results of operations. | |||
(13) | Environmental or other government regulations may have a material adverse impact on Makitas business activities. | ||
Makita maintains strict compliance with environmental, commercial, export and import, tax, safety and other regulations that are applicable to its activities in all the countries in which Makita operates. If Makita is unable to continue its compliance with existing regulations or is unable to comply with any new or amended regulations, it may be subject to fines and other penalties and its activities may be significantly restricted. The costs related to compliance with any new or amended regulations may also result in significant increases in overall costs. | |||
9
(14) | Investor confidence and the value of Makitas ADRs and ordinary shares may be adversely impacted if Makitas management concludes that Makitas internal control over financial reporting is not effective or if Makitas independent registered public accounting firm is unable to provide adequate attestation over the adequacy of the internal control over Makitas financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002. | ||
Makita is required to include in its annual report on Form 20-F from the fiscal year 2007 and in future fiscal years to be filed with the U.S. Securities and Exchange Commission, an assessment by Makitas management on the effectiveness of Makitas internal control over financial reporting, as promulgated under section 404 of the Sarbanes-Oxley Act of 2002. In addition, the companys independent registered public accounting firm is required to audit and report on the effectiveness of Makitas internal control over financial reporting. Makita has been reviewing and evaluating its internal control over financial reporting to ensure compliance with the requirements under section 404 of the Sarbanes-Oxley Act of 2002. However, if Makitas management concludes that Makitas internal control over financial reporting is not effective, or if the independent registered public accounting firm issues a report that Makitas internal control over financial reporting is not effective, there could be an adverse reaction in the market resulting from a loss of investor confidence in the reliability of Makitas financial statements, which ultimately could negatively impact the market price of Makitas ADRs and ordinary shares. | |||
10
11
12
Yen (millions) | ||||||||||||||||
As of | As of | As of | ||||||||||||||
September 30, | September | Increase | March | |||||||||||||
2006 | 30, 2007 | (Decrease) | 31, 2007 | |||||||||||||
ASSETS |
||||||||||||||||
CURRENT ASSETS: |
||||||||||||||||
Cash and cash equivalents |
35,302 | 35,686 | 384 | 37,128 | ||||||||||||
Time deposits |
4,987 | 6,616 | 1,629 | 6,866 | ||||||||||||
Marketable securities |
52,693 | 54,215 | 1,522 | 58,217 | ||||||||||||
Trade receivables- |
||||||||||||||||
Notes |
2,666 | 3,470 | 804 | 3,125 | ||||||||||||
Accounts |
46,969 | 62,144 | 15,175 | 54,189 | ||||||||||||
Less- Allowance for doubtful receivables |
(1,038 | ) | (1,015 | ) | 23 | (869 | ) | |||||||||
Inventories |
88,700 | 107,118 | 18,418 | 92,800 | ||||||||||||
Deferred income taxes |
3,967 | 5,315 | 1,348 | 5,080 | ||||||||||||
Prepaid expenses and other current assets |
8,572 | 10,901 | 2,329 | 9,963 | ||||||||||||
Total current assets |
242,818 | 284,450 | 41,632 | 266,499 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT, at cost: |
||||||||||||||||
Land |
16,733 | 18,898 | 2,165 | 16,732 | ||||||||||||
Buildings and improvements |
55,508 | 61,691 | 6,183 | 57,242 | ||||||||||||
Machinery and equipment |
74,109 | 77,683 | 3,574 | 74,087 | ||||||||||||
Construction in progress |
3,030 | 4,993 | 1,963 | 5,576 | ||||||||||||
149,380 | 163,265 | 13,885 | 153,637 | |||||||||||||
Less- Accumulated depreciation |
(89,803 | ) | (92,873 | ) | (3,070 | ) | (90,257 | ) | ||||||||
59,577 | 70,392 | 10,815 | 63,380 | |||||||||||||
INVESTMENTS AND OTHER ASSETS: |
||||||||||||||||
Investment securities |
28,008 | 23,860 | (4,148 | ) | 27,279 | |||||||||||
Deferred income taxes |
559 | 1,491 | 932 | 1,367 | ||||||||||||
Other assets |
9,214 | 12,955 | 3,741 | 9,969 | ||||||||||||
37,781 | 38,306 | 525 | 38,615 | |||||||||||||
340,176 | 393,148 | 52,972 | 368,494 | |||||||||||||
13
Yen (millions) | ||||||||||||||||
As of | As of | As of | ||||||||||||||
September 30, | September | Increase | March | |||||||||||||
2006 | 30, 2007 | (Decrease) | 31, 2007 | |||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||
CURRENT LIABILITIES: |
||||||||||||||||
Short-term borrowings |
3,396 | 1,111 | (2,285 | ) | 1,892 | |||||||||||
Trade notes and accounts payable |
14,672 | 21,717 | 7,045 | 16,025 | ||||||||||||
Accrued payroll |
8,333 | 8,728 | 395 | 8,571 | ||||||||||||
Accrued expenses and other |
14,394 | 18,145 | 3,751 | 17,353 | ||||||||||||
Income taxes payable |
7,515 | 8,941 | 1,426 | 10,447 | ||||||||||||
Deferred income taxes |
129 | 5 | (124 | ) | 28 | |||||||||||
Total current liabilities |
48,439 | 58,647 | 10,208 | 54,316 | ||||||||||||
LONG-TERM LIABILITIES: |
||||||||||||||||
Long-term indebtedness |
100 | 931 | 831 | 53 | ||||||||||||
Accrued retirement and termination allowances |
3,264 | 4,095 | 831 | 3,227 | ||||||||||||
Deferred income taxes |
6,233 | 4,958 | (1,275 | ) | 4,976 | |||||||||||
Other liabilities |
1,015 | 2,084 | 1,069 | 1,112 | ||||||||||||
10,612 | 12,068 | 1,456 | 9,368 | |||||||||||||
MINORITY INTERESTS |
1,751 | 2,289 | 538 | 2,135 | ||||||||||||
SHAREHOLDERS EQUITY: |
||||||||||||||||
Common stock |
23,805 | 23,805 | | 23,805 | ||||||||||||
Additional paid-in capital |
45,437 | 45,750 | 313 | 45,437 | ||||||||||||
Legal reserve and retained earnings |
202,184 | 236,727 | 34,543 | 221,034 | ||||||||||||
Accumulated other comprehensive income |
8,223 | 14,108 | 5,885 | 12,697 | ||||||||||||
Treasury stock, at cost |
(275 | ) | (246 | ) | 29 | (298 | ) | |||||||||
279,374 | 320,144 | 40,770 | 302,675 | |||||||||||||
340,176 | 393,148 | 52,972 | 368,494 | |||||||||||||
14
Yen (millions) | ||||||||||||||||||||||||||||||||
For the six | For the six | |||||||||||||||||||||||||||||||
months ended | months ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | Increase | For the year ended | |||||||||||||||||||||||||||||
2006 | 2007 | (Decrease) | March 31, 2007 | |||||||||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||||||||
NET SALES |
131,891 | 100.0 | 169,537 | 100.0 | 37,646 | 28.5 | 279,933 | 100.0 | ||||||||||||||||||||||||
Cost of sales |
77,343 | 58.6 | 98,847 | 58.3 | 21,504 | 27.8 | 163,909 | 58.6 | ||||||||||||||||||||||||
GROSS PROFIT |
54,548 | 41.4 | 70,690 | 41.7 | 16,142 | 29.6 | 116,024 | 41.4 | ||||||||||||||||||||||||
Selling, general,
administrative and
other expenses |
33,161 | 25.2 | 36,791 | 21.7 | 3,630 | 10.9 | 67,848 | 24.2 | ||||||||||||||||||||||||
OPERATING INCOME |
21,387 | 16.2 | 33,899 | 20.0 | 12,511 | 58.5 | 48,176 | 17.2 | ||||||||||||||||||||||||
OTHER INCOME (EXPENSES): |
||||||||||||||||||||||||||||||||
Interest and dividend
income |
569 | 0.4 | 1,022 | 0.6 | 453 | 79.6 | 1,364 | 0.5 | ||||||||||||||||||||||||
Interest expense |
(163 | ) | (0.1 | ) | (166 | ) | (0.1 | ) | (3 | ) | | (316 | ) | (0.1 | ) | |||||||||||||||||
Exchange losses
on foreign currency
transactions, net |
(193 | ) | (0.1 | ) | (125 | ) | (0.1 | ) | 68 | | (418 | ) | (0.2 | ) | ||||||||||||||||||
Realized gains
on securities, net |
311 | 0.2 | 8 | 0.0 | (303 | ) | (97.4 | ) | 918 | 0.3 | ||||||||||||||||||||||
Other, net |
(115 | ) | (0.1 | ) | (170 | ) | (0.1 | ) | (54 | ) | | (401 | ) | (0.1 | ) | |||||||||||||||||
Total |
409 | 0.3 | 569 | 0.3 | 160 | 39.1 | 1,147 | 0.4 | ||||||||||||||||||||||||
INCOME BEFORE
INCOME TAXES |
21,796 | 16.5 | 34,468 | 20.3 | 12,672 | 58.1 | 49,323 | 17.6 | ||||||||||||||||||||||||
PROVISION FOR
INCOME TAXES: |
||||||||||||||||||||||||||||||||
Current |
7,230 | 5.5 | 10,168 | 6.0 | 2,938 | 40.6 | 16,486 | 5.9 | ||||||||||||||||||||||||
Deferred |
(824 | ) | (0.7 | ) | 704 | 0.4 | 1,528 | | (4,134 | ) | (1.5 | ) | ||||||||||||||||||||
Total |
6,406 | 4.8 | 10,872 | 6.4 | 4,466 | 69.7 | 12,352 | 4.4 | ||||||||||||||||||||||||
NET INCOME |
15,390 | 11.7 | 23,596 | 13.9 | 8,206 | 53.3 | 36,971 | 13.2 | ||||||||||||||||||||||||
15
Yen (millions) | ||||||||||||
For the six | For the six | |||||||||||
months ended | months ended | For the year | ||||||||||
September 30, | September 30, | ended March | ||||||||||
2006 | 2007 | 31, 2007 | ||||||||||
COMMON STOCK: |
||||||||||||
Beginning balance |
23,805 | 23,805 | 23,805 | |||||||||
Ending balance |
23,805 | 23,805 | 23,805 | |||||||||
ADDITIONAL PAID-IN CAPITAL: |
||||||||||||
Beginning balance |
45,437 | 45,437 | 45,437 | |||||||||
Gain on sales of treasury stock |
| 313 | | |||||||||
Ending balance |
45,437 | 45,750 | 45,437 | |||||||||
LEGAL RESERVE AND RETAINED EARNINGS: |
||||||||||||
Beginning balance |
192,255 | 221,034 | 192,255 | |||||||||
Cash dividends |
(5,461 | ) | (7,903 | ) | (8,192 | ) | ||||||
Net income |
15,390 | 23,596 | 36,971 | |||||||||
Ending balance |
202,184 | 236,727 | 221,034 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME: |
||||||||||||
Beginning balance |
5,345 | 12,697 | 5,345 | |||||||||
Other comprehensive income for the period |
2,878 | 1,411 | 7,515 | |||||||||
Adjustment to initially apply SFAS No.158, net of tax |
| | (163 | ) | ||||||||
Ending balance |
8,223 | 14,108 | 12,697 | |||||||||
TREASURY STOCK, at cost: |
||||||||||||
Beginning balance |
(258 | ) | (298 | ) | (258 | ) | ||||||
Purchases |
(17 | ) | (32 | ) | (40 | ) | ||||||
Sales |
| 84 | | |||||||||
Ending balance |
(275 | ) | (246 | ) | (298 | ) | ||||||
TOTAL SHAREHOLDERS EQUITY |
279,374 | 320,144 | 302,675 | |||||||||
DISCLOSURE OF COMPREHENSIVE INCOME: |
||||||||||||
Net income for the period |
15,390 | 23,596 | 36,971 | |||||||||
Other comprehensive income for the period, net of tax |
2,878 | 1,411 | 7,515 | |||||||||
Total comprehensive income for the period |
18,268 | 25,007 | 44,486 | |||||||||
16
Yen (millions) | ||||||||||||
For the six | For the six | |||||||||||
months ended | months ended | For the year | ||||||||||
September 30, | September 30, | ended March | ||||||||||
2006 | 2007 | 31, 2007 | ||||||||||
Net cash provided by operating activities |
13,419 | 13,803 | 32,360 | |||||||||
Net cash used in investing activities |
(14,203 | ) | (4,950 | ) | (27,276 | ) | ||||||
Net cash used in financing activities |
(3,978 | ) | (10,047 | ) | (8,307 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents |
1,010 | (248 | ) | 1,297 | ||||||||
Net change in cash and cash equivalents |
(3,752 | ) | (1,442 | ) | (1,926 | ) | ||||||
Cash and cash equivalents, beginning of period |
39,054 | 37,128 | 39,054 | |||||||||
Cash and cash equivalents, end of period |
35,302 | 35,686 | 37,128 | |||||||||
5. | SIGNIFICANT ACCOUNTING POLICIES |
(1) | Scope of consolidation and equity method | |
Number of consolidated subsidiaries: 47 | ||
Major subsidiaries are as follows: |
Number of equity method affiliates: 2 | ||
(2) | Consolidated 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 Makitas 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. |
17
18
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
North | and elimi- | Consoli- | ||||||||||||||||||||||||||||||
Japan | Europe | America | Asia | Other | Total | nations | 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 |
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
North | and elimi- | Consoli- | ||||||||||||||||||||||||||||||
Japan | Europe | America | Asia | Other | Total | nations | dated | |||||||||||||||||||||||||
Sales: |
||||||||||||||||||||||||||||||||
(1) External
customers |
35,281 | 78,871 | 28,792 | 5,511 | 21,082 | 169,537 | | 169,537 | ||||||||||||||||||||||||
(2) Intersegment |
34,085 | 2,707 | 2,342 | 48,684 | 106 | 87,924 | (87,924 | ) | | |||||||||||||||||||||||
Total |
69,366 | 81,578 | 31,134 | 54,195 | 21,188 | 257,461 | (87,924 | ) | 169,537 | |||||||||||||||||||||||
Operating expenses |
57,352 | 68,485 | 30,016 | 47,603 | 18,240 | 221,696 | (86,058 | ) | 135,638 | |||||||||||||||||||||||
Operating income |
12,014 | 13,093 | 1,118 | 6,592 | 2,948 | 35,765 | (1,866 | ) | 33,899 |
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
North | and elimi- | Consoli- | ||||||||||||||||||||||||||||||
Japan | Europe | America | Asia | Other | Total | nations | dated | |||||||||||||||||||||||||
Sales: |
||||||||||||||||||||||||||||||||
(1) External
customers |
61,776 | 124,924 | 51,432 | 9,698 | 32,103 | 279,933 | | 279,933 | ||||||||||||||||||||||||
(2) Intersegment |
64,040 | 5,709 | 5,297 | 67,021 | 149 | 142,216 | (142,216 | ) | | |||||||||||||||||||||||
Total |
125,816 | 130,633 | 56,729 | 76,719 | 32,252 | 422,149 | (142,216 | ) | 279,933 | |||||||||||||||||||||||
Operating expenses |
108,403 | 112,577 | 54,217 | 66,815 | 28,786 | 370,798 | (139,041 | ) | 231,757 | |||||||||||||||||||||||
Operating income |
17,413 | 18,056 | 2,512 | 9,904 | 3,466 | 51,351 | (3,175 | ) | 48,176 |
19
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Equity securities |
1,517 | 1,814 | 15 | 3,316 | 3,316 | |||||||||||||||
Debt securities |
3,545 | 5 | 26 | 3,524 | 3,524 | |||||||||||||||
Funds in trusts and
investments in trusts |
43,886 | 1,229 | 62 | 45,053 | 45,053 | |||||||||||||||
48,948 | 3,048 | 103 | 51,893 | 51,893 | ||||||||||||||||
Investment securities: |
||||||||||||||||||||
Equity securities |
10,901 | 14,335 | 13 | 25,223 | 25,223 | |||||||||||||||
Debt securities |
30 | | | 30 | 30 | |||||||||||||||
Investments in trusts |
731 | 175 | | 906 | 906 | |||||||||||||||
11,662 | 14,510 | 13 | 26,159 | 26,159 | ||||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Equity securities |
1,486 | 1,577 | 3 | 3,060 | 3,060 | |||||||||||||||
Debt securities |
6,438 | 21 | 1 | 6,458 | 6,458 | |||||||||||||||
Funds in trusts and
investments in trusts |
41,707 | 2,110 | 220 | 43,597 | 43,597 | |||||||||||||||
49,631 | 3,708 | 224 | 53,115 | 53,115 | ||||||||||||||||
Investment securities: |
||||||||||||||||||||
Equity securities |
11,423 | 11,339 | 595 | 22,167 | 22,167 | |||||||||||||||
Investments in trusts |
236 | 9 | | 245 | 245 | |||||||||||||||
11,659 | 11,348 | 595 | 22,412 | 22,412 | ||||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Equity securities |
1,481 | 1,914 | | 3,395 | 3,395 | |||||||||||||||
Debt securities |
6,438 | 10 | 1 | 6,447 | 6,447 | |||||||||||||||
Funds in trusts and
investments in trusts |
45,115 | 2,025 | 64 | 47,076 | 47,076 | |||||||||||||||
53,034 | 3,949 | 65 | 56,918 | 56,918 | ||||||||||||||||
Investment securities: |
||||||||||||||||||||
Equity securities |
11,113 | 13,856 | 12 | 24,957 | 24,957 | |||||||||||||||
Investments in trusts |
720 | 264 | 12 | 972 | 972 | |||||||||||||||
11,833 | 14,120 | 24 | 25,929 | 25,929 | ||||||||||||||||
20
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Debt securities |
800 | | | 800 | 800 | |||||||||||||||
Investment securities: |
||||||||||||||||||||
Debt securities |
1,849 | | 108 | 1,741 | 1,849 | |||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Debt securities |
1,100 | | 2 | 1,098 | 1,100 | |||||||||||||||
Investment securities: |
||||||||||||||||||||
Debt securities |
1,448 | | 109 | 1,339 | 1,448 | |||||||||||||||
Yen (millions) | ||||||||||||||||||||
Gross unrealized holding | Carrying | |||||||||||||||||||
Cost | Gains | Losses | Fair value | Amount | ||||||||||||||||
Marketable securities: |
||||||||||||||||||||
Debt securities |
1,299 | | 1 | 1,298 | 1,299 | |||||||||||||||
Investment securities: |
||||||||||||||||||||
Debt securities |
1,350 | | 107 | 1,243 | 1,350 | |||||||||||||||
21
Yen (millions) | ||||||||||||||||||||||||
For the six months ended |
For the six months ended |
For the year | ||||||||||||||||||||||
September 30, | September 30, | ended March 31, | ||||||||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||
Finished goods |
112,769 | 85.5 | 146,451 | 86.4 | 239,017 | 85.3 | ||||||||||||||||||
Parts, repairs and accessories |
19,122 | 14.5 | 23,086 | 13.6 | 40,916 | 14.7 | ||||||||||||||||||
Total net sales |
131,891 | 100.0 | 169,537 | 100.0 | 279,933 | 100.0 | ||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||
For the six months ended |
For the six months ended |
For the year | ||||||||||||||||||||||
September 30, | September 30, | ended March 31, | ||||||||||||||||||||||
2006 | 2007 | 2007 | ||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||
Finished goods |
95,959 | 88.1 | 128,048 | 89.0 | 204,670 | 87.8 | ||||||||||||||||||
Parts, repairs and accessories |
13,005 | 11.9 | 15,840 | 11.0 | 28,403 | 12.2 | ||||||||||||||||||
Total overseas sales |
108,964 | 100.0 | 143,888 | 100.0 | 233,073 | 100.0 | ||||||||||||||||||
Yen | ||||||||||||
As of | As of | As of | ||||||||||
September 30, 2006 | September 30, 2007 | March 31, 2007 | ||||||||||
Shareholders equity per share |
1,944.05 | 2,226.68 | 2,106.28 |
Yen | ||||||||||||
For the six months | For the six months | |||||||||||
ended September 30, | ended September 30, | For the year ended | ||||||||||
2006 | 2007 | March 31, 2007 | ||||||||||
Net income per share: |
||||||||||||
Basic |
107.09 | 164.17 | 257.27 | |||||||||
Diluted |
107.09 | 164.17 | 257.27 |
Note: | Net income per share is calculated on the basis of the average
number of shares outstanding during the period. Average number of shares outstanding is as follows: |
For the six months ended September 30, 2006: |
143,709,479 | |||
For the six months ended September 30, 2007: |
143,725,286 | |||
For the year ended March 31, 2007: |
143,706,789 |
Moreover, there are no shares having a potentially dilutive effect for any period. |
22
Yen (millions) | ||||||||||||||||||||||||||||||||||||
For the six months | For the six months | For the six months | ||||||||||||||||||||||||||||||||||
ended September | ended September | ended September | ||||||||||||||||||||||||||||||||||
30, 2005 | 30, 2006 | 30, 2007 | ||||||||||||||||||||||||||||||||||
(Results) | (Results) | (Results) | ||||||||||||||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||||||||||||||
Net sales |
106,649 | 9.5 | 131,891 | 23.7 | 169,537 | 28.5 | ||||||||||||||||||||||||||||||
Domestic |
20,029 | 5.3 | 22,927 | 14.5 | 25,649 | 11.9 | ||||||||||||||||||||||||||||||
Overseas |
86,620 | 10.5 | 108,964 | 25.8 | 143,888 | 32.1 | ||||||||||||||||||||||||||||||
Operating income |
25,897 | 33.1 | 21,387 | (17.4 | ) | 33,899 | 58.5 | |||||||||||||||||||||||||||||
Income before income taxes |
26,504 | 31.0 | 21,796 | (17.8 | ) | 34,468 | 58.1 | |||||||||||||||||||||||||||||
Net income |
25,807 | 99.2 | 15,390 | (40.4 | ) | 23,596 | 53.3 | |||||||||||||||||||||||||||||
Net income per share (Yen) |
179.52 | 107.09 | 164.17 | |||||||||||||||||||||||||||||||||
Cash dividend per share (Yen) |
19.00 | 19.00 | 30.00 | |||||||||||||||||||||||||||||||||
Dividend payout ratio (%) |
10.6 | 17.7 | 18.3 | |||||||||||||||||||||||||||||||||
Employees |
8,557 | 9,077 | 10,093 |
Yen (millions) | ||||||||||||||||||||||||||||
For the year ended | For the year ending | |||||||||||||||||||||||||||
March 31, 2007 | March 31, 2008 | |||||||||||||||||||||||||||
(Results) | (Forecast) | |||||||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | |||||||||||||||||||||||||
Net sales |
279,933 | 22.2 | 330,000 | 17.9 | ||||||||||||||||||||||||
Domestic |
46,860 | 12.6 | 51,000 | 8.8 | ||||||||||||||||||||||||
Overseas |
233,073 | 24.3 | 279,000 | 19.7 | ||||||||||||||||||||||||
Operating income |
48,176 | 5.2 | 62,000 | 28.7 | ||||||||||||||||||||||||
Income before income taxes |
49,323 | 0.4 | 62,500 | 26.7 | ||||||||||||||||||||||||
Net income |
(Note 2) | 36,971 | (8.5 | ) | 42,800 | 15.8 | ||||||||||||||||||||||
Net income per share (Yen) |
(Note 2) | 257.27 | 297.68 | |||||||||||||||||||||||||
Cash dividend per share (Yen) |
(Note 2) | 74.00 | | |||||||||||||||||||||||||
Dividend payout ratio (%) |
(Note 2) | 28.8 | | |||||||||||||||||||||||||
Employees |
9,062 | |
Notes: | 1. The table above shows the change 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. Special circumstances that influenced the calculation of the dividend for the year ended March 31, 2007 were 1.7 billion yen. Excluding these special circumstances, Net income, Net income per share and Dividend payout ratio for the year ended March 31, 2007 are as follows: |
Net income:
|
35.3 billion yen | |||
Net income per share:
|
245.41 yen | |||
Dividend payout ratio:
|
30.2 | % |
23
Yen (millions) | ||||||||||||||||||||||||
For the six months | For the six months | For the six months | ||||||||||||||||||||||
ended September | ended September | ended September | ||||||||||||||||||||||
30, 2005 | 30, 2006 | 30, 2007 | ||||||||||||||||||||||
(Results) | (Results) | (Results) | ||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||
Japan |
20,029 | 5.3 | 22,927 | 14.5 | 25,649 | 11.9 | ||||||||||||||||||
Europe |
41,802 | 14.8 | 56,558 | 35.3 | 78,865 | 39.4 | ||||||||||||||||||
North America |
20,648 | 4.8 | 24,513 | 18.7 | 28,942 | 18.1 | ||||||||||||||||||
Asia |
8,472 | (9.1 | ) | 9,776 | 15.4 | 11,021 | 12.7 | |||||||||||||||||
Other regions |
15,698 | 21.0 | 18,117 | 15.4 | 25,060 | 38.3 | ||||||||||||||||||
The Middle East and Africa |
5,118 | 19.6 | 6,203 | 21.2 | 8,650 | 39.4 | ||||||||||||||||||
Oceania |
5,486 | (0.9 | ) | 5,983 | 9.1 | 8,276 | 38.3 | |||||||||||||||||
Central and South America |
5,094 | 61.4 | 5,931 | 16.4 | 8,134 | 37.1 | ||||||||||||||||||
Total |
106,649 | 9.5 | 131,891 | 23.7 | 169,537 | 28.5 |
Note: | The table above sets forth Makitas consolidated net sales by geographic area based on customers location for the periods presented. |
Yen | ||||||||||||
For the six months | For the six months | For the six months | ||||||||||
ended September | ended September | ended September | ||||||||||
30, 2005 | 30, 2006 | 30, 2007 | ||||||||||
(Results) | (Results) | (Results) | ||||||||||
Yen/U.S. Dollar |
109.52 | 115.38 | 119.40 | |||||||||
Yen/Euro |
135.61 | 146.01 | 162.33 |
Yen | ||||||||
For the six months | For the year | |||||||
ending March 31, | ending March 31, | |||||||
2008 | 2008 | |||||||
(Forecast) | (Forecast) | |||||||
Yen/U.S. Dollar |
112 | 116 | ||||||
Yen/Euro |
160 | 161 |
For the six months | ||||
ended September | ||||
30, 2007 | ||||
(Results) | ||||
(%) | ||||
U.S.A. |
11.1 | |||
Germany |
20.3 | |||
U.K. |
27.1 | |||
France |
15.2 | |||
China |
16.9 | |||
Australia |
17.1 |
24
For the six months | For the six months | For the six months | ||||||||||
ended September | ended September | ended September | ||||||||||
30, 2005 | 30, 2006 | 30, 2007 | ||||||||||
(Results) | (Results) | (Results) | ||||||||||
(%) | (%) | (%) | ||||||||||
Domestic |
28.9 | 27.9 | 24.0 | |||||||||
Overseas |
71.1 | 72.1 | 76.0 |
Yen (millions) | ||||||||||||||||
For the six months | For the six months | For the six months | ||||||||||||||
ended September | ended September | ended September | For the year ending | |||||||||||||
30, 2005 | 30, 2006 | 30, 2007 | March 31, 2008 | |||||||||||||
(Results) | (Results) | (Results) | (Forecast) | |||||||||||||
Capital expenditures |
4,856 | 4,873 | 7,161 | 17,700 | ||||||||||||
Depreciation and
amortization |
2,658 | 3,715 | 3,879 | 8,700 | ||||||||||||
R&D cost |
2,345 | 2,605 | 2,826 | 5,800 |
25