Fact Book2016 - MakinoFact Book2016 For the ended March 31, 2016 (Consolidated) Corporate Data Corporate Name: Makino Milling Machine Co., Ltd. Head Office: 3-19 Nakane 2-chome, Meguro-ku,

Fact Book 2016

For the ended March 31, 2016 (Consolidated)

Corporate DataCorporate Name: Makino Milling Machine Co., Ltd.

Head Office: 3-19 Nakane 2-chome, Meguro-ku, Tokyo 152-8578, JapanPhone: +81-3-3717-1151

Established: May 1937

Paid-in Capital: 19,263 million yen

President: Shinichi Inoue

Activities:

Number of Employees: 4,455 (consllidated), 1,507 (non-consolidated) As of March 31, 2016

Website Address: http://www.makino.co.jp/

Contents

1. Results of Operations

2. Financial positions

3. Capital expenditures, Depreciation, R&D expences

4. Cash Flows

5. Sales by Region

6. Sales by Products

7. Per Share Data

8. Development of Makino Group

9. Situation of Share of Stock and Information for Shareholders

10. Common Stock Prices and Trading Volume

Manufacturing, sales and repairs of machine tools such as machining centers, NCelectrical discharge machines(EDMs), NC milling machines, milling machines, FMS,CAD/CAM systems and other products.

1. Results of Operations

2011 2012 2013 2014 2015Net Sales (Billions of yen) 110.4 126.8 123.8 149.5 161.9Operating Income / Loss (Billions of yen) 5.8 8.0 4.9 12.0 14.4Operating Income Ratio (%) 5.3 6.4 4.0 8.0 8.9Ordinary Income / Loss (Billions of yen) 5.0 7.6 5.3 13.2 15.3Ordinary Income Ratio (%) 4.6 6.0 4.3 8.9 9.5Net Income / Lossattributable

(Billions of yen) 3.6 5.1 4.2 11.4 12.1

Net Income Ratio (%) 3.3 4.1 3.5 7.7 7.5

Fiscal Year

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30

60

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120

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180

2011 2012 2013 2014 2015

(bn. yen)

Net Sales

(FY)

0

3

6

9

12

15

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4

8

12

16

2011 2012 2013 2014 2015

(%)(bn. yen)Operating income / 

Operating income ratio

(FY)

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3

6

9

12

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0

4

8

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16

2011 2012 2013 2014 2015

(%)(bn. yen)Ordinary Income / 

Ordinary Income ratio

(FY)

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6

9

12

15

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4

8

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16

2011 2012 2013 2014 2015

(%)(bn. yen)Net Income / 

Net Income Ratio

(FY)

2. Financial positions

Fiscal Year 2011 2012 2013 2014 2015Total Assets (Billions of yen) 178.3 209.7 218.4 245.4 234.2Return on Assets (ROA) (%) 2.1 2.7 2.0 4.9 5.1Total Asset Trunover (Times) 0.9 0.7 0.6 0.6 0.7Shareholders' Equity (Billions of yen) 83.1 91.9 98.6 117.1 116.4Shareholders' Equity Ratio (%) 46.6 43.8 45.1 47.7 49.7Retrun on Equity (ROE) (%) 4.6 5.9 4.5 10.6 10.4Current Ratio (%) 265.2 225.6 228.1 241.5 238.7

Return on Assets (ROA) = Net Income attributable to owners of the parent / Average Total Assets x 100Total Asset turnover = Net Sales / Average Total AssetsShareholders' Equity Ratio = Shareholders' Equity / Total Assets x 100

Retrun on Equity (ROE) = Net Income attributable to owners of the parent / Shareholders' Equity (Average)Current Ratio = Current Assets / Current Liabilities x 100

0

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100

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300

2011 2012 2013 2014 2015

(bn. yen)

Total Assets

(FY)

40

42

44

46

48

50

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150

2011 2012 2013 2014 2015

(%)(bn. yen)

Shareholders' Equity / Shareholders' Equity  Ratio

(FY)

3. Capital expenditures, Depreciation, R&D expences

Fiscal Year 2011 2012 2013 2014 2015Capital expenditures (Billions of yen) 10.6 6.5 11.6 7.1 8.1Depreciation (Billions of yen) 3.1 3.4 3.6 4.7 5.1R&D expenses (Billions of yen) 4.7 4.8 5.0 5.1 5.7

0

3

6

9

12

15

2011 2012 2013 2014 2015

(bn. yen)Capital expenditures

(FY)

0

1

2

3

4

5

6

2011 2012 2013 2014 2015

(bn. yen)Depreciation

(FY)

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1

2

3

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5

6

2011 2012 2013 2014 2015

(bn. yen)

R&D expences

(FY)

4. Cash Flows

Fiscal Year 2011 2012 2013 2014 2015Net cash provided by (used in) operating activities (Billions of yen) -6.1 12.5 8.1 10.6 24.8Net cash provided by (used in) investing activities (Billions of yen) -9.6 -19.8 0.7 -6.8 -6.3Net cash provided by (used in) financing activities (Billions of yen) 7.1 21.1 -10.4 -5.7 -6.7Cash and cash equivalents, end of period (Billions of yen) 27.8 43.2 42.6 42.2 52.3

‐25

‐20

‐15

‐10

‐5

0

5

10

15

20

25

30

2011 2012 2013 2014 2015

(bn. yen)Cash Flows

Net cash provided by (used in) operating activitiesNet cash provided by (used in) investing activitiesNet cash provided by (used in) financing activities

(FY)

5. Sales by Region

Fiscal Year 2011 2012 2013 2014 2015Domestic sales (Billions of yen) 30.7 32.5 34.7 36.7 46.4Overseas sales　America (Billions of yen) 26.3 33.2 40.7 48.8 47.9　Europe (Billions of yen) 9.7 13.1 15.4 18.9 14.7　Asia and Others (Billions of yen) 43.6 47.8 32.9 44.9 52.8Total (Billions of yen) 110.4 126.8 123.8 149.5 161.9

0

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160

180

2011 2012 2013 2014 2015

(bn. yen) Sales by Region

Japan America Europe Asia and Others

(FY)

6. Sales by Products

Fiscal Year 2011 2012 2013 2014 2015Machining centers (Billions of yen) 78.7 85.3 75.7 100.1 110.3EDMs (Billions of yen) 7.0 7.9 10.7 13.7 14.4Milling Machines (Billions of yen) 0.5 0.7 0.8 0.6 0.8Others (Billions of yen) 24.1 32.8 36.4 34.9 36.3 Total (Billions of yen) 110.4 126.8 123.8 149.5 161.9

0

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80

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160

180

2011 2012 2013 2014 2015

(bn. yen) Sales by Products

Machining centers EDMs

Milling Machines Others

(FY)

7. Per Share Data

Fiscal Year 2011 2012 2013 2014 2015Net Income per Share (yen) 33.2 46.3 38.6 102.9 109.5Net Assets per Share (yen) 746.9 826.5 886.5 1,053.5 1,058.0Price-Earnings Ratio (PER) (Times) 21.3 12.4 18.8 9.9 6.3Price-Book value Ratio (PBR) (Times) 0.9 0.7 0.8 1.0 0.7Cash Divicends per Share (yen) 8 9 10 14 16Payout Ratio (%) 24.1 19.4 25.9 13.6 14.6Dividend on Equity Ratio (DOE) (%) 1.1 1.1 1.2 1.4 1.5

Net Income per Share = Net Income attributable to owners of the parent / Average number of Shares outstanding (excluding treasury stocks)Net Assets per Share = Net Assets (concerning common stock) / Number of Shares outstanding (excluding treasury stocks)Price-Earnings Ratio (PER) = Common stock price at the end of fiscal year / Net Income per SharePrice-Book value Ratio (PBR) = Common stock price at the end of fiscal year / Net Assets per SharePayout Ratio = Cash Dividend per Share / Net Income per Share x 100Dividend on Equity Ratio (DOE) = Cash Dividend per share / Net Assets per Share (Average) x 100

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100

120

2011 2012 2013 2014 2015

(yen)Net Income per Share

(FY)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0

200

400

600

800

1,000

1,200

2011 2012 2013 2014 2015

(Times)(yen)Net Assets per Share / PBR

(FY)

8. Development of Makino Group

■Primary Locations ■Consolidated SubsidiariesHead Office (Tokyo, Japan) MAKINO ASIA PTE LTD (Singapore)Domestic Works (Japan) MAKINO INC. (USA)　Atsugi Office (Kanagawa) MAKINO Europe GmbH (Germany)　Fuji Katsuyama Office (Yamanashi) MAKINO RESOURCE DEVELOPMENT PTE LTD　Makino J Co., Ltd. (Kanagawa) (Singapore)Overseas Works MAKINO KOREA Co., Ltd. (Korea)　MAKINO ASIA PTE LTD (Singapore) Makino J Co., Ltd. (Japan)　Makino (China) Co., Ltd. (China) Makino Denso Co., Ltd. (Japan)　MAKINO INDIA PRIVATE LIMTED (India) Makino Technical Service Co., Ltd. (Japan)Domestic Sales & Service Office (Japan) Kanto Bussan Kaisha, Ltd. (Japan)　Tokyo Makino Giken Co., Ltd. (Japan)　Osaka Makino Logistics Co., Ltd. (Japan)　Aichi (Nagoya)　Gunma　Saitama　FukuokaOverseas Sales & Service Office　MAKINO INC. (USA)　MAKINO Europe GmbH (Germany)　MAKINO ASIA PTE LTD (Singapore)　Makino (China) Co., Ltd. (China)　MAKINO INDIA PRIVATE LIMTED (India)

MAKINO Europe GmbH (Germany)

MAKINO INDIA PRIVATE LIMTED (India)

MAKINO (CHINA) Co., Ltd. （China）

MAKINO ASIA PTE LTD (Singapore)

Makino Milling Machine Co., Ltd. （Japan）

MAKINO INC. (USA)

9. Situation of Share of Stock and Information for Shareholders

Situation of Share of Stock (as of March 31, 2016) Number of shares outstanding 119,944,543 Number of shareholders 10,137 Principle shareholders (Top 10 holders)

Number ofheld shares

Percentageof shares

(thousand) (%)

(Figures less than one thousand shares are rounded down.)Notes: 1. We have the treasury stock of 9,893,017 stocks, which is not included in the above figures of principle shareholders. 2. The ratio of shareholders was calculated after deducting the treasury stock.

Breakdown by Shareholders

Information for ShareholdersFiscal year : from April 1 to March 31

Record date : (Year-end dividend) March 31 (Mid-term Dividend) September 30

Annual general meeting ofShare holders

: held in every June

: Mitsubishi UFJ Trust and Banking

Contact information : Mitsubishi UFJ Trust and Banking, Corporate Agency Division 7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, Japan Telephone: 0120-232-711 (toll free in Japan)

Listed securities exchange : Tokyo Stock Exchange

Method of notification : Electronic notification Website address for notifications: http://www.makino.co.jp/ (If electric notification is not available due to an accident or other unavoidable circumstances, official notifications will be published in the Nihon Keizai Shimbun newspaper.)

1.75

JPMC GOLDMAN SACHS TRUST JASDEC LENDING ACCOUNT

Shun Makino

2,361

Shareholders

Japan Trustee Service Bank, Ltd (Trust account)

Machine Tool Engineering Foundation

The Master Trust Bank of Japan, Ltd (Trust account)

Jiro Makino

DEUTSCHE BANK AG LONDON-PB NON-TREATY CLIENTS 613

8,317 7.56

4.064,469

4,181 3.80

Administrator of theshareholders' registerSpecial purpose bankaccount governing body

2,394 2.18

2,409 2.19

2.15

2,180 1.98

MSIP CLIENT SECURITIES

Bank of Tokyo-Mitsubishi UFJ, Ltd.

Toda Corporation 1,773 1.61

2,165 1.97

1,920

10. Common Stock Prices and Trading Volume

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1 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5

2012 2013 2014 2015 2016

(Trading Volume: millions of Shares)(Stock Price: yen) Trading Volume Stock Price (closing)

For further corporate information, visit our website at:

http://www.makino.co.jp/