(Summary English Translation of the Materials disclosed via the Internet pursuant to Laws, Regulations, and the Articles
of Incorporaion regarding the Notice of the 110th Ordinary General Meeting of Shareholders Originally Issued in Japanese
Language)

June 6, 2022

MATERIALS DISCLOSED VIA THE INTERNET PURSUANT TO LAWS, REGULATIONS,AND THE ARTICLES OF INCORPORATION REGARDING THE NOTICE OF THE 110TH
ORDINARY GENERAL MEETING OF SHAREHOLDERS

Notes to Consolidated Financial Statements
Notes to Non-consolidated Financial Statements

MAKITA CORPORATION

Pursuant to applicable laws and regulations and Article 14 of the Articles of Incorporation of the Corporation, thesecontents are deemed to be provided to shareholders by posting them on our website (https://www.makita.biz/ir/).

Notes to Consolidated Financial Statements
Notes to Important Basic Matters for Preparation of Consolidated Financial Statements
1. Basis of presentation
The consolidated financial statements are prepared in accordance with International Financial Reporting Standards(“IFRS”) pursuant to the provision of Article 120, paragraph 1 of the Ordinance on Accounting of Companies. Provided
that certain statements and notes required by IFRS are omitted in accordance with the second sentence of said Article.
2. Scope of consolidation
Number of consolidated subsidiaries: 52
Major subsidiaries are as follows:
Makita U.S.A. Inc., Makita (U.K.) Ltd., Makita Werkzeug GmbH. (Germany), Makita France SAS,
Makita Oy (Finland), Makita LLC (Russia), Makita (China) Co., Ltd., Makita (Kunshan) Co., Ltd.,
Makita (Australia) Pty. Ltd., SC Makita EU S.R.L., etc.
3. Valuation of Financial Instruments(1) Non-derivative financial assets(i) Initial recognition and measurement
At initial recognition, Makita classifies financial assets as financial assets measured at amortized cost, financial assets
measured at fair value through other comprehensive income, or financial assets measured at fair value through profit
or loss. We initially recognize trade receivables and other receivables on the effective date, and other financial assets
on the transaction date in which we become a party to the contract of the financial instrument.
All of the financial assets, except financial assets measured at fair value through profit or loss, are initially measured
at the amount of fair value added to the transaction cost directly attributable to the financial asset. However, tradereceivables without a significant financial component are initially measured at the transaction price.
(a) Financial assets measured at amortized cost
We classify financial assets that both of the following conditions are met as financial assets measured atamortized cost:
・ The financial asset is held within a business model whose objective is to hold financial assets in order tocollect contractual cash flows, and・ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
(b) Financial assets measured at fair value through other comprehensive income
An entity may, at initial recognition, make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value of a particular investment in an equity instrument not held for trading thatwould otherwise be measured at fair value and not classified as financial assets measured at amortized cost.
Makita determines the designation for each financial instrument.
(c) Financial assets measured at fair value through profit or loss
Financial assets, other than financial assets measured at amortized cost or at fair value through othercomprehensive income, are classified as financial assets measured at fair value through profit or loss.
(ii) Subsequent measurement(a) Financial assets measured at amortized cost
Financial assets measured at amortized cost are, after initial recognition, measured at amortized cost based on
the effective interest method. Interest revenue calculated by using the effective interest method is recognized in
profit or loss.
(b) Financial assets measured at fair value through other comprehensive income
Equity instruments measured at fair value through other comprehensive income are, after initial recognition,measured at fair value, and its subsequent changes are recognized in other comprehensive income. The
cumulative amount that is recognized in other comprehensive income is transferred to retained earnings, when
the amount is derecognized or when the fair value decreases significantly. In addition, dividends from equity
instruments measured at fair value through other comprehensive income are recognized in profit or loss.
(c) Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss are, after initial recognition, measured at fair value.
Gain or loss of valuation arising from changes in fair value, dividends, and interest revenue are recognized in
profit or loss.

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(iii) Derecognition
Financial assets are derecognized, when the contractual rights to the cash flows from the financial asset expire, or
when the contractual rights to receive the cash flows of the financial asset along with almost all of the risks related
to the contract and its economic value transferred.
(2) Impairment of financial assets
Makita recognizes allowance for doubtful receivables for expected credit losses related to financial assets measured atamortized cost. Expected credit losses are measured based on discounted present value of the difference between
contractual cash flows to be received based on the contract and cash flows to be expected to be received.
If the credit risks related to the financial asset increase significantly after initial recognition, lifetime expected credit
losses are recognized in allowance for doubtful receivables. If the risk does not increase significantly after initialrecognition, 12-month expected credit losses are recognized in allowance for doubtful receivables. In addition, tradereceivables without a significant financial component are classified in accordance with the credit risk of the other party
based on the past due information or the internal credit rating, and their allowance for doubtful receivables arenecessarily measured at an amount equal to lifetime expected credit losses, with the ratio of past credit losses calculatedby the classification multiplied the provision ratio in consideration of expected future economic conditions.
We assess whether credit risks related to financial assets increase significantly after initial recognition or not bycomparing the risk of default at initial recognition and the risk of default at each reporting date, taking into
consideration the reasonable information with evidence as well as the past due information. If entire or part of afinancial asset is judged to be impossible or incredibly difficult to be collected, it is considered to be in default andtreated as credit-impaired financial assets.
We directly reduce the gross carrying amount of a financial asset when there is no reasonable expectations ofrecovering the financial asset in its entirety or a portion thereof.
Allowance for doubtful receivables and reversal of allowance for doubtful receivables of financial assets arerecognized in profit or loss.
(3) Non-derivative financial liabilities(i) Initial recognition and measurement
At initial recognition, Makita classifies financial liabilities as financial liabilities measured at amortized cost or
liabilities measured at fair value through profit or loss. A financial liability is initially recognized on the transaction
date in which we become a party to the contract of the financial liability.
All of the financial liabilities are measured at fair value at initial recognition. However, financial liabilities measured
at amortized cost are measured at the amount after deduction of the transaction cost directly attributable to thefinancial liabilities from the fair value.
(ii) Subsequent measurement(a) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost are, after initial recognition, measured at amortized cost basedon the effective interest method.
(b) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss are, after initial recognition, measured at fairvalue. Gain or loss of valuation arising from changes in fair value are recognized in profit or loss.
(iii) Derecognition
A financial liability is derecognized, when it is extinguished, namely, when the obligation specified in the contract
is discharged, chancelled or expired.
(4) Derivatives
Makita uses derivative transactions including foreign exchange contracts in order to hedge the foreign currency risk.
Derivatives are initially recognized at fair value and remeasured at fair value after initial recongnition. Changes in fairvalue of derivatives are recognized in profit or loss.

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4. Valuation of Inventories
Inventories are measured at the lower of the acquisition cost and the net realizable value. Acquisition costs include allcosts of purchases, conversion and other costs incurred in bringing the inventories to their present location and condition.
Acquisition costs are calculated by using the weighted average cost formula. Costs of conversion include production
overheads based on the normal capacity of production. Net realizable value is the estimated selling price in the ordinary
course of business less the estimated cost necessary to make the sale.
5. Depreciation Method of Significant Depreciable Assets(1) Property, plant and equipment
Property, plant and equipment other than land and construction in progress are depreciated by using the straight-line
method, for its depreciable amount that is its acquisition cost less the residual value, over its estimated useful life
beginning from the point when the assets are available for use. The estimated useful lives of the major assets are as
follows.
Buildings and improvements:
3 to 60 years
Machinery and equipment:
2 to 20 years
Depreciation method, residual value and estimated useful lives are reviewed every year and revised if necessary.
(2) Intangible assets
Intangible assets with definite useful lives are amortized by using the straight-line method over each estimated usefullife. The estimated useful lives of the major intagible assets are as follows.
Development expenses:
5 years
Software:2 to 10 years
Industrial property rights:
4 to 17 years
Amortization method, residual value and estimated useful lives are reviewed every year and revised if necessary.
(3) Right-of-use assets
After the initial recognition of the right-of-use assets, when the ownership of the underlying asset transfers to Makita
or when it is reasonably certain that Makita will exercise a purchase option, the right-of-use assets are depreciated byusing the straight-line method over the estimated useful life of the underlying asset. In other cases, the right-of-use
assets are depreciated by using the straight-line method over the shorter of the estimated useful life and the lease term.
6. Impariment of Non-financial Assets
We judge at the reporting date whether there are any indications that Makita’s non-financial assets except inventories
and deferred income taxes may be impaired.
If any of those indications is present, we conduct impairment tests to estimate recoverable amount of the assets.
Goodwill, intangible assets with no definite useful life, and intangible assets that are not yet available for use are notamortized, and the impairment tests are conducted every year and every time when indications of impairment arepresent.
Makita’s corporate assets do not generate independent cash inflow, therefore, if there is any indication that the corporate
assets may be impaired, the recoverable amount of cash-generating unit to which the corporate assets is attributable isestimated.
A recoverable amount is the higher amount of the fair value less the cost of disposal and the value in use. In culculating
value in use, an estimate of the future cash flows is discounted to the present value by using the discount rate before
tax that reflects the time value of money and the risk inherent in the asset.
If the carrying amount of each asset or cash-generating unit exceeds the recoverable amount, the impaiement loss isrecognized in profit or loss, and the carrying amount of the asset is reduced to a recoverable amount. Any impairment
loss recognized related to cash-generating units or groups of cash-generating units is allocated to reduce the carrying
amount of goodwill allocated to the unit, and then the carrying amount of other assets in the unit is reduced
proportionally.
Impairment losses of goodwill are not reversed. As for impairment losses of non-financial assets other than goodwill,
the recorvarable amount of the asset is estimated if there is no impairment losses or any indication of possibility thatthe impairment loss is reduced, and the impairment loss is reversed if the recoverable amount exceeds the carrying
amount after impairment. In addition, reversal of impairment losses are recognized in profit or loss, within the range
not exceeding the carrying amount when there was no impairment loss recognized in the asset in the past.

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7. Provisions
Provisions are recognized when Makita has a present legal obligation or constructive obligation as a result of a past
event, and when it is probable that an outflow of resources embodying economic benefits will be required to settle theobligation and a reliable estimate can be made of the amount of the obligation.
When the effect of the time value of money is material, the provision is measured at the present value of the expendituresthat are expected to be required to settle the obligation. Present value is culculated by using the discount rate before tax
that reflects the time value of money and the risks inherent in the liability. Rebate of the discounted amount arisingfrom the passage of time is recognized as financial cost.
Warranty provisions are provided to prepare for the expense of after-sales service for the products based on the pastactual cost, taking into consideration the defective rate of current products, the malfunction of specific products never
manufactured before, the effects of the costs of materials and shipping related to repair of defective products. Warranty
provisions are provided as provisions and cost of sales, when the revenue is recognized.
8. Post-emplyment Benefits
Makita has adopted defined benefit pension plans and defined contribution plans for post-employment benefits.
(i) Defined benefit pension plans
The present value of the defined benefit obligations and the related current service cost and past service cost arecalculated by using the projected unit credit method.
A discount rate is calculated based on the market yields of high quality corporate bonds at the reporting datecorresponding to a discount period which is determined based on the period until the expected date of future benefit
payment in each fiscal year.
Assets and liabilities related to defined benefit pension plans are calculated by the amount of the present value of
defined benefit obligations less the fair value of the plan assets. The current service cost and net interest on the net
defined benefit liability are recognized in profit or loss. Past service costs are recognized as expense during theperiod in which they occur.
Remeasurements of the net defined benefit liability or asset are entirely recognized in other comprehensive incomein the period in which they occur, and immediately transferred to retained earnings.
(ii) Defined contribution plans
The contribution payable to defined contribution plans is recognized as expense during the period in which
employees render the related service.
9. Translation(1) Foreign Currency Transactions
Foreign currency transactions are conducted by translating into a functional currency of each company of Makita at theexchange rate as of the tansaction date.
Monetary assets and liabilities denominated in foreign currencies as of the reporting date are translated into functional
currencies at the exchange rate as of the reporting date.
As for non-monetary assets and liabilities denominated in foreign currencies, those measured at the acquisition cost aretranslated by using the exchange rate as of the transaction date, and those measured at fair value are translated by using
the exchange rate as of the date of calculation of the fair value. The exchange differences arising from the translationor the settlement are recognized in profit or loss. However, the differences arising from the translation of equity
instruments measured at fair value whose changes are recognized in other comprehensive income are recognized inother comprehensive income.
(2) Foreign operations
Assets and liabilities of a foreign operation are translated into Japanese yen at the exchange rate as of the reporting date,and its revenue and expenses are translted at the average exchange rate for the period except the case that the exchage
rate changes significantly. The exchange differences as a result of this are recognized in other comprehensive income.
Also, the exchange differences of a foreign operation are recognized in profit or loss during the period in which theforeign operation is disposed.

-4-10. Revenue Recognition
Makita recognizes revenue by applying the following five steps.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
Makita is engaged mainly in production and sales of power tools and outdoor power equipment, etc. Regarding theseproduct, we have determined that a performance obligation is satisfied when a product is transferred to a customer as
the customer has control of the product. Therefore, revenue of these products is recognized at the point of transferring
these products. In addition, the revenue is measured at the amount of the promised consideration in a contract with acustomer less the amount of a reduction, rebate and returned products.

Notes to Accounting Estimates
The following items have balance amounts recorded in the consolidated financial statements for the fiscal year ended
March 31, 2022 under the accounting estimates and may have a significant impact on the consolidated financial statements
for the fiscal year ended March 31, 2023.
・Measurement of defined benefit obligation
The amount of defined benefit obligation recorded in the consolidated financial statements for the fiscal year ended
March 31, 2022 is 38,560 million yen. Makita has adopted defined benefit pension plans and defined contribution plansfor post-employment benefits. The present value of the defined benefit obligations and the related current service cost,etc. are calculated by actuarial assumptions. Actuarial assumptions requires estimates and judgement for various factors
including discount rates. Actuarial assumptions is decided by estimates and judgement made by management. However,it may be affected by the fluctuation of future uncertain financial condition or by amending or promulgating related
laws. In the event that revision is necessary, it may have a significant impact on the amount recognized in the
consolidated financial statements from the following consolidated fiscal year.
・Recoverability of deferred tax asset
The amount of deferred tax asset recorded in the consolidated financial statements for the fiscal year ended March 31,
2022 is 12,238 million yen. Deferred tax assets are recognized for the carryforward of unused tax losses, tax credits, anddeductible temporary differences, to the extent of that it is probable that future taxable income will be available against
such deferred tax assets. Period and amount of taxable income may be affected by the fluctuation of future uncertain
financial condition. In the event that the actual period and amount of taxable income are different from the assumption forwhich the estimation is used, it may have a significant impact on the amount recognized in the consolidated financial
statements from the following consolidated fiscal year. In the event of changes in effective tax rate, the balance ofdeferred tax assets may increase or decrease.
・Valuation of inventories
The amount of inventories recorded in the consolidated financial statements for the fiscal year ended March 31, 2022 is475,128 million yen, which is recorded after subtracting the book value devaluation of 28,084 million yen due to a decline
in net realizable value.
Inventories are measured at the lower of the acquisition cost and the net realizable value. When inventories are measured
at the net realizable value, the difference between the acquisition cost is recognized as cost of sales in principle.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost necessary to
make the sale. However, for inventories that stay outside of the business cycle process, the net realizable value iscalculated by reflecting sales policies, future demand and market trends. If the market environment deteriorates more than
expected and the net realizable value falls significantly, it may have a significant impact on the amount recognized in the
consolidated financial statements from the following consolidated fiscal year.

-5-Notes to Consolidated Balance Sheet
1.

Allowance for doubtful receivables directly deducted from assets
Trade receivables and other receivables:
2. Accumulated depreciation of property, plant and equipment:
Accumulated depreciation includes accumulated impairment losses.

1,614
173,686

million yen
million yen

Notes to Consolidated Statement of Changes in Equity
1. Matter regarding shares issued
Kind of shares
Common stock

Beginning of the period

Increase

280,017,520 shares

Decrease-

End of the period-

280,017,520 shares

2. Matter regarding dividend distribution(1) Amount of dividend distribution
Resolution

Type of shares

Total amount ofdividends

Record date(Millions of Yen)

Dividend
per share(Yen)

Effective dateOrdinary General Meeting of
Shareholders held on June 25, 2021

Common stock

16,02059

March 31, 2021

June 28, 2021

Board of Directors
held on October 28, 2021

Common stock

2,715

10

September 30, 2021

November 26, 2021

(2) Dividends that becomes effective during the following period, whose record date falls during the period under review
Scheduled resolution
Ordinary General
Meeting of Shareholders
held on June 28, 2022

Type of shares

Common stock

Dividend resource

Retained earnings

Total amount ofdividends(Millions of Yen)

Dividend
per share(Yen)

16,83562

Record date

Effective date

March 31, 2022

June 29, 2022

Notes to Financial Instruments
1. Matter regarding status of financial instruments
In the course of business activities, Makita is exposed to financial risks, such asforeign exchange rate risks, stock pricerisks, interest rate risks, credit risks, and liquidity risks. We perform risk management activities to reduce such financial
risks.
(1) Market risk(i) Foreign exchange rate risk management
Makita operates business activities globally and is exposed to risks related to foreign exchange rate fluctuation inpurchase and sales transactions denominated in foreign currencies. For foreign currency transactions, we hedge
against the foreign exchange rate fluctuation risk through derivative transactions such as settlement and forward
exchange contract in a bank account abroad to reduce the impact of the exchange rate fluctuation risk. Although we
do not apply hedge accounting to these derivative transactions, we have judged that the transactions effectively offset
the impact of the exchange rate fluctuation.
(ii) Stock price risk management
Makita holds listed stock and is exposed to market price fluctuation risks. To manage the risks, we periodicallymonitor the market prices and financial conditions of issuing entities and revise our stock holding status appropriately.
(2) Interest rate risk
Makita’s liabilities with interest include borrowings and lease liabilities , partial borrowings are financed atvariable interest rates. Although, we consider that the change of the market interest rate has a minor impact on
Makita’s profit or loss because all borrowings are short-term. Accordingly, the matter of interest rate risks isimmaterial for Makita.
(3) Credit risk
Makita is exposed to credit risks causing financial losses due to default by the other party of our financial assets. Tradeaccounts receivable and trade notes receivable, which are trade receivable, are exposed to the credit risk of customers.
In order to reduce the risks, we established a credit limit for each partner in accordance with the credit management
rules, and our sales management department manages a fixed date and balance of each partner, periodically monitoring-6-the conditions of the major partners to identify doubtful accounts due to worsening financial conditions as soon as
possible. In addition, we do not have over-concentration risks of a partner or of a group that the partner belongs to.
The fund management of Makita is exposed to credit risks of depositees or issuers of receivables. We hold cash andcash equivalents and other financial assets of only high-ranked financial institutions in accordance with the guidelines
for fund managemet. Therefore, we believe that credit risks are low.
(4) Liquidity risk
The liquidity risk is a risk that Makita may be unable to repay the obligation related to a financial liability to be settled
by cash or other financial assets on the due date.
Although trade payables and other payables, borrowings, and other financial liablities are exposed to liquidity risks,
we manage the risks by maintaining borrowing limits of financial institutions as well as developing and renewing acash plan in a timely manner.
2.

Matter regarding such as fair value of financial instruments
The carrying amount and fair value of the financial instruments as of March 31, 2021 are as follows.
(Millions of Yen)
Carrying amount

Fair value

Financial assets measured at amortized cost
200
200
Debt securities(Notes) 1. The table above does not include financial instruments measured at fair value in the consolidated balance sheet andfinancial instruments whose carrying amounts are reasonable approximations to the fair value.
2. Debt securities of financial assets measured at amortized cost are included in “Other financial assets” in the
consolidated balance sheet.

(The fair value hierarchy)
The fair value hierarchy of financial instruments is categorized as follows:
Level 1: Fair value measured with quoted prices for identical assets and liabilities in an active market.
Level 2: Fair value measured with inputs other than quoted prices categorized within Level 1 that are observable,
either directly or indirectly, for the asset or liability.
Level 3: Fair value measured using valuation techniques, including inputs not based on observable market data
for the asset or liability.
(Measurement of fair value)(Cash and cash equivalents, trade receivables and other receivables, and trade payables and other payables)
Since they are settled in a short period, the carrying amounts are reasonable approximations to the fair value.
(Borrowings)
Since all of them are settled within 1 year, the carrying amounts are reasonable approximations to the fair value.
(Other financial assets and other financial liabilities)
Since time deposits due over 3 months of the other financial assets are settled in a short period, the carrying
amounts are reasonable approximations to the fair value. Listed stock is determined by exchange market prices
as financial assets measured at fair value through other comprehensive income. Debt securities are calculated
at an exchange market price or a price presented by a financial institution as financial assets measured at fairvalue through profit or loss.
Derivatives are calculated as financial assets or financial liabilites measured at fair value through profit or loss,
based on such basic conditions observable at the market as exchage rate, etc.

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3. Matter regarding the details of the fair value of financial instruments for each appropriate classification(1) Finantial instruments measured at amortized cost
The carrying amount and fair value of financial instruments measured at amortized cost are as follows.
(Millions of Yen)
The fair value
The carrying
AmountLevel 1
Level 2
Level 3
Total
Debt securities
200
200
200
(Notes) 1. The table above does not include financial instruments whose carrying amounts are reasonable approximations
to the fair value.
2. Debt securities of financial assets measured at amortized cost are included in “Other financial assets” in the
consolidated balance sheet.
The fair value of Level 1 debt securities is based on quoted prices in active markets where there is sufficient trading
volume and frequent trading.
(2) The fair value of financial assets and liabilities measured at fair value on a recurring basis
Details of the financial assets and liabilities measured at fair value on a recurring basis, classified by level in the fairvalue hierarchy are as follows:
Reclassification between levels in the fair value hierarchy is recognized on the date when the event or change incircumstances occurred that caused the reclassification.
(Millions of Yen)
Level 1
Level 2
Level 3
Total
Financial assets
Financial assets measured at fair value throughother comprehensive income
Stocks23,4601,448
24,908Financial assets measured at fair value throughnet profit or loss
Derivative assets
315
315
Total
23,460315
1,448
25,223Financial liabilities
Financial liabilities measured at fair value
through net profit or loss
Derivative liabilities
7,053
7,053
Total
7,053
7,305
(Notes) 1. There were no reclassifications between Level 1 and Level 2 during the consolidated fiscal year ended March
31, 2022.
2. Financial assets measured at fair value through other comprehensive income, and financial assets measured atfair value through profit or loss are included in “Other financial assets” in the consolidated balance sheet.
Financial liabilities measured at fair value through profit or loss are included in “Other financial liabilities” inthe consolidated balance sheet.
Financial assets classified as Level 1 are mainly marketable publicly listed stocks. Publicly listed stocks are based onquoted prices in active markets where there is sufficient trading volume and frequent trading.
Financial assets and liabilities classified as Level 2 are derivatives. Derivatives are mainly exchange contracts andare calculated based on the basic terms observable in the market such as exchange rates.
Financial assets classified as Level 3 are primarily unlisted stocks. In accordance with the Group’s accounting policies,
the fair value is measured using the most recently available data. There were no significant changes from the previous
year in respect of the financial assets classified as Level 3.

-8-Notes to Revenue Recognition(1) The breakdown of revenue
Makita has conducted the business activities in sigularity business field of the production and sales of power tools andoutdoor power equipment. The details of the revenue are as follows. Our revenue arises from contracts with ourcustomers.
(i) Revenue by each product and services
Details of revenue by each product and services are as follows:

Power tools
Outdoor power equipments, household tools, and other
tools
Components, repairing, and accessories
Total amounts(Millions of Yen)
The consolidated fisical year
(From April 1, 2021
To March 31, 2022)
422,076
189,579
127,605739,260(ii) Revenue by region
Details of revenue by region are as follows:(Millions of Yen)
The consolidated fisical year
(From April 1, 2021
To March 31, 2022)
Japan
118,050
Europe352,470
North America
112,248(America)(99,549)
Asia
49,196
Others107,296
Total amounts
739,260(Notes) Revenue is classified as countries or regions on the basis of the location of customers.
(2) Basic information for understanding revenue
The content and time of revenue recognition of the performance obligations based on the contract with a customer in
Makita’s major business is stated in “10. Revenue Recognition” of Notes to Important Basic Matters for Preparation ofConsolidated Financial Statements.
Notes to Information Per Share
Equity attributable to owners of the parent per share

2,748.64 yen

Profit attributable to owners of the parent per share
238.54 yen(Basic)Notes to Significant Subsequent Events:
None.
*Amounts less than 1 million yen have been rounded.

-9-Notes to Non-consolidated Financial Statements
Notes to Significant Accounting Policies
1. Valuation of securities
Held-to-maturity securities:
Amortized cost (straight-line method)
Stocks of subsidiaries:
At moving-average cost
Other securities
Other than stocks having no fair market value:
Fair market value as of the end of the period(Valuation differences are presented as valuation and translation
adjustments in net assets.
The cost of securities sold is calculated based on the moving-averagemethod.)Stocks having no fair market value:
At moving-average cost
2. Valuation of net assets and liabilities accrued from derivative transactions:
Fair market value as of the end of the period
3. Valuation of inventories
Inventories are valued at the lower of cost based (the balance sheet amount is computed using the method ofdevaluing the book price to reflect declines in profitability).
Finished goods, merchandise, work in process, and raw materials:
At average cost
Supplies:
At latest purchase cost
4. Depreciation method of fixed assets
Tangible fixed assets:(Excluding lease assets)

Straight-line method
Useful life:
Buildings:
Machinery and equipment:

31 to 50 years
5 to 10 years

Intangible fixed assets:(Excluding lease assets)

Straight-line method
Software for internal use is depreciated on the straight-line method over its
estimated useful life (5 years).
Industrial property rights are depreciated on the straight-line method over
4 to 17 year period.

Lease assets:

Lease assets relating to finance lease transactions, excluding those whose
ownership is transferred to the lessee upon lease expiration, are depreciatedby the straight-line method over the lease term with no residual value, thelease term being regarded as the useful life.

- 10 -

5. Allowances
Allowance for doubtful accounts:

Allowance for directors’ bonuses:
Allowance for product warranties:

Retirement and termination
allowance:

Retirement allowance for Directors
and Audit & Supervisory Board
Members:

The allowance for doubtful accounts is reserved based on the historical
write-off ratio for accounts receivable. For accounts receivable that are
difficult to collect, individually estimated write-off amounts arereserved.
In preparation for the anticipated payment of directors’ bonuses, weappropriate the amount estimated to pay for the period.
In preparation for the payment of product after-service and free postsale repair services, we appropriate the projected amount based on
actual payment in the past.
To be prepared for employee retirement, retirement and termination
allowance and prepaid pension cost are reserved based on projected
benefit obligations and plan assets at the balance sheet date. In
calculating the projected benefit obligations, the Corporation adopted
the benefit formula basis as the method for attributing the expected
benefit to the period up to the end of the period. Past service costs areamortized by the straight-line method over the average remaining
employment period. Actuarial differences are amortized starting
immediately after the year of accruement by the straight-line method
over the average remaining employment period.
The Corporation terminated the retirement allowance plan for Directors
and Audit & Supervisory Board Members as of the conclusion of theordinary general meeting of shareholders held on June 29, 2006. Thebalance of the period end is the amount of the reserve for the period of
office served until abolition of the plan by those current directors(excluding outside directors) who served until June 29, 2006.

6. Income and Expense

The Corporation is primarily involved in the production and sales of power tools and outdoor equipment, etc.
Regarding these products, the Corporation has determined that the performance obligation is satisfied when the
product is delivered to a customer, as the customer has control of the product. Therefore, revenue in respect of theseproducts is recognized at the point in time of delivery of these products. In addition, the revenue is measured at theamount of the promised consideration in the contract with a customer less the amount of any reduction, rebate or
returned products.
Changes in Accounting Policies
The Corporation applied the “Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan(ASBJ) Statement No. 30, July 4, 2019, the “Accounting Standard for Fair Value Measurement”) and related measuresfrom the beginning of the fiscal year ended March 31, 2022, and in the future the Corporation will apply the new accounting
policy specified in the Accounting Standard for Fair Value Measurement and related measures, in accordance with thetransitional treatment stipulated in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Item 44-2of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). It does not have any

impact on the financial statements.
Notes to Accounting Estimate
The following item has balance amount recorded in the financial statements for the period under the accounting estimatesand may have a significant impact on the financial statements for the following period.
・Valuation of inventories
The amount of inventories recorded in the financial statements for the period is 47,512 million yen, which is recorded
after subtracting the book value devaluation of 1,067 million yen due to a decline in profitability.
Inventories are valued at the lower of cost based (the balance sheet amount is computed using the method of devaluing
the book price to reflect declines in profitability). If the true cash value (calculated by deducting the estimated direct
selling expense from the estimated selling price) is lower than the acquisition cost, inventories are measured at the true
cash value and the difference between the acquisition cost is recognized as cost of sales in principle. For inventories thatstay outside of the business cycle process, the book value thereof is devaluated, in consideration of sales policies, future
demand and market trends. If the market environment deteriorates more than expected and profitability fall significantly,
it may have a significant impact on the amount recognized in the consolidated financial statements from the following
period.
- 11 -

Notes to Balance Sheet
1. Accumulated depreciation on tangible fixed assets:
32,066

million yen

Structures

2,818

million yen

Machinery and equipment

12,467

million yen

263

million yen

Tools, furniture and fixtures

27,805

million yen

Total

75,419million yen

6,120

million yen

Short-term receivables

170,451

million yen

Short-term payables

73,041

million yen

Sales391,726

million yen

Purchases, etc.
Amount of non-operating transactions

377,300

million yen

4,201

million yen

Buildings

Vehicles and transportation equipment

2. Guarantee:
Guarantee for borrowing from financial institution
Maximum amount of guarantee for Makita U.S.A. Inc.
(50 million U.S. dollars)
3. Receivables and payables for affiliates:

Notes to Statement of Income
Transactions with affiliates
Amount of operating transactions

Notes to Statement of Changes in Net Assets
1. Matter regarding treasury stock
Beginning of theKind of sharesperiodCommon stock
8,490,396 shares(Reasons for the change)

Increase

Decrease

End of the period

1,249 shares

6,584 shares

8,485,061 shares

The reason for the increase is as follows:
Purchase of shares constituting less than a full unit:

1,249

shares6,584

shares

The reason for the decrease is as follows:
Allotment of restricted shares- 12 -

Notes to Tax Effect Accounting
1. The main reasons for deferred income tax assets and liabilities are as follows:
Deferred income tax assets
Accrued expenses
2,113
Inventories
878
Accrued enterprise taxes
523
Loss on valuation of investment securities
2,005
Excess in depreciation
3,274
Retirement allowance for directors and audit &91
supervisory board members
Loss on impairment of fixed assets
84
Other
153
Subtotal
Valuation allowance

million yen
million yen
million yen
million yen
million yen
million yen
million yen
million yen

9,121 million yen(361) million yen

Total

8,760

million yen

Deferred income tax liabilities
Prepaid pension cost

Net unrealized gains on securities
Reserve for advanced depreciation of fixed assets
Total(3,314) million yen(2,129) million yen(1,026) million yen(6,469) million yen

Net amount of deferred income tax liabilities

2,291 million yen

2. Major items causing the significant difference between the statutory income tax rates applicable to the Corporation andthe effective income tax rates after the adoption of tax effect accounting are as follows:
Statutory income tax rate
30.2%
(Reconciliations)
Dividend income and other permanently
non-taxable income(2.4%)

Withholding tax on foreign dividends

0.2%

Tax credit for R&D expenses
Other
Effective income tax rate after the adoption of tax effectaccounting(1.7%)
0.9%
27.2%

Notes to Fixed Assets Used through Leases
Operating leases
Lease commitments under non-cancelable operating leases
Within 1 year
Over 1 year

314
2,138

- 13 -

million yen
million yen

Notes to Transactions with Related Parties
1. Directors and primary individual shareholders
Attribute

Companies which directors and their relatives own the majority of voting rights(including the subsidiaries of such companies)

Corporate name

TOA Co., Ltd. (Note 1)

Maruwa, Ltd. (Note 2)

Principal business orDesign, production and distribution of automatic

position

regulators

Real estate business

Owning and owned
ratio of voting rights

Direct owned ratio: 0.0

Direct owned ratio: 3.2(%)
RelationshipPrincipaltransactions

Transaction amount(Millions of Yen)

Account title

Purchase of production equipment

AdvertisingInterlocking Directors(Number of directors: 2)

Interlocking Directors (Number of directors: 2)

Purchase of production equipment (Note 3)Advertising (Note 3)

199

2

Other payable

-

19

-

Balance at end of
the period(Millions of Yen)

Terms of transactions and the policy to decide the terms(Note 1) Masahiko Goto, Chairman and Representative Director of the Corporation, Munetoshi Goto, President
and Representative Director of the Corporation, and their relatives own 100% of voting rights of TOA
Co., Ltd.
(Note 2) Masahiko Goto, Chairman and Representative Director of the Corporation, Munetoshi Goto, President
and Representative Director of the Corporation, and their relatives own 68.1% of voting rights of Maruwa,
Ltd.
(Note 3) The prices of the transactions with TOA Co., Ltd. and Maruwa, Ltd. are determined upon negotiation,
considering the prevailing market prices.

- 14 -

2. Subsidiaries
Subsidiaries

Attribute

Makita U.S.A. Inc.
Corporate name
Owning andowned ratio of

Direct owning ratio: 100.0

voting rights (%)
Debt guarantee

Sale of merchandise and finished goods
Relationship
Interlocking Directors (Number of directors: 3)
Principaltransactions

Debt guarantee (Note 1)

Sale of merchandise and finished goods (Note 2)

6,120

74,865-Trade accounts receivable-

42,688Transaction
amount(Millions of Yen)
Account title
Balance at end of
the period(Millions ofYen)

Attribute
Corporate name
Owning and owned
ratio of voting
rights (%)
RelationshipPrincipaltransactions

Subsidiaries
Makita Werkzeug GmbH.
(Germany)
Direct owning ratio:1.0
Indirect owning ratio:99.0

Sale of merchandise and finished goods
Interlocking Directors (Number of directors: 3)

Sale of merchandise and finished goods (Note 2)

Transaction amount

43,441(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

10,158(Millions of Yen)

- 15 -

Attribute

Subsidiaries

Corporate nameMakita (U.K) Ltd.

Owning and owned
ratio of voting

Direct owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions
Transaction amount(Millions of Yen)
Account title

Sale of merchandise and finished goods
Subscription of additional increase of capitalInterlocking Directors (Number of directors: 3)

Capital increase (Note 3)

Sale of merchandise and finished goods (Note 2)

8,016

27,094-

Trade accounts receivable

-

9,446

Balance at end of
the period(Millions of Yen)

Attribute

Subsidiaries
Makita Oy

Corporate name(Finland)Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions

Sale of merchandise and finished goods
Interlocking Directors (Number of directors: 2)

Sale of merchandise and finished goods (Note 2)

Transaction amount

24,792(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

8,158(Millions of Yen)
Attribute

Subsidiaries- 16 -

Makita LLC

Corporate name
Owning and owned
ratio of voting
rights (%)
RelationshipPrincipaltransactions(Russia)
Direct owning ratio:80.2
Indirect owning ratio:19.8

Sale of merchandise and finished goods

Sale of merchandise and finished goods (Note 2)

Transaction amount

21,331(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

7,831(Millions of Yen)
Attribute

Corporate nameSubsidiaries

Makita sp. zo.o
(Poland)Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions

Sale of merchandise and finished goods

Sale of merchandise and finished goods (Note 2)

Transaction amount

17,433(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
7,032

the period(Millions of Yen)

- 17 -

Attribute

Subsidiaries

Corporate nameMakita (Australia) Pty. Ltd.

Owning and owned
ratio of voting

Direct owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions

Sale of merchandise and finished goods

Sale of merchandise and finished goods (Note 2)

Transaction amount

32,730(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

6,886(Millions of Yen)

Attribute
Corporate nameSubsidiaries
Makita Werkzeug GmbH.
(Austria)

Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions

Sale of merchandise and finished goods
Interlocking Directors (Number of directors: 2)

Sale of merchandise and finished goods (Note 2)

Transaction amount

17,036(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

6,568(Millions of Yen)

- 18 -

Attribute

Subsidiaries

Corporate nameMakita France SAS

Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
RelationshipPrincipaltransactions

Sale of merchandise and finished goods
Interlocking Directors (Number of directors: 2)

Sale of merchandise and finished goods (Note 2)

Transaction amount

16,999(Millions of Yen)
Account title

Trade accounts receivable

Balance at end of
the period

6,506(Millions of Yen)

Attribute
Corporate nameSubsidiaries
Makita EU S.R.L.
(Romania)

Owning and owned
ratio of voting

Direct owning ratio:100.0

rights (%)
Relationship

Loan of funds
Interlocking Directors (Number of directors: 1)

Principal

Loan of funds

transactions(Notes 4)

Transaction amount

7,391(Millions of Yen)
Account title

Loans receivable to affiliates

Balance at end of
the period

11,893(Millions of Yen)

- 19 -

Attribute

Subsidiaries

Corporate nameMakita (China) Co., Ltd.

Makita (Kunshan) Co., Ltd.

Direct owning ratio: 100.0

Direct owning ratio: 100.0

Owning and owned
ratio of voting
rights (%)

RelationshipPrincipal

Purchase of merchandise and finished goods, etc. Purchase of merchandise and finished goods, etc.
Interlocking Directors (Number of directors: 4)Interlocking Directors (Number of directors: 4)Purchase of merchandise and finished goods, etc. Purchase of merchandise and finished goods, etc.

transactions

Transaction amount(Millions of Yen)

Account title(Note 2)

(Note 2)

103,342

252,935

Trade accounts payable

Trade accounts payable

17,44451,442

Balance at end of
the period(Millions of Yen)

Terms of transactions and the policy to decide the terms(Note 1) For Makita U.S.A. Inc., the Corporation has guaranteed its debt, and the amount shown in “Transaction
amount” represents the maximum amount of guarantee (50 million U.S. dollars with no payment deadline).
(Note 2) The price of goods and other terms of transactions are determined upon negotiation, considering theprevailing market prices.
(Note 3) Investment by way of capital increase was made.
(Note 4) The lending interest rate in loan of funds is reasonably determined in consideration with market interest
rate. The Corporation has not taken collateral.
Notes to Revenue Recognition
It is omitted as described in “Notes to Revenue Recognition” of the Notes to the Consolidated Financial Statements.
Notes to Information Per Share
Net assets per share

1,607.61

yen

Net income per share

121.22yen

Notes to Significant Subsequent Events:
None.

Notes to Company to which Consolidated Dividend Regulations Apply
The Corporation is a company to which consolidated dividend regulations apply.
*Amounts less than 1 million yen have been rounded.

- 20 -