Makita Corporation
Consolidated Financial Results
for the three months
ended June 30, 2023
(IFRS Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2023 (Unaudited)
July 31, 2023

Makita Corporation
Stock code: 6586
URL: https://www.makita.biz/
Munetoshi Goto, President, Representative Director

1. Summary operating results of the three months ended June 30, 2023 (From April 1, 2023 to June 30, 2023)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the three months ended
For the three months ended
June 30, 2022
June 30, 2023(%)(%)
Revenue ................................................................
195,348
5.4
184,455(5.6)
Operating profit ....................................................
15,228(46.3)
16,311
7.1
Profit before income taxes ....................................
15,719(47.4)
16,045
2.1
Profit .....................................................................
10,436(52.2)
11,167
7.0
Profit attributable to owners of the parent ............
10,563(51.1)
11,185
5.9
Comprehensive income ........................................
56,42591.5
52,693(6.6)
Yen
Profit attributable toOwners of the parent per share(Basic)..................................................................
38.90
41.30
(Diluted) ..............................................................
Notes:
1.
Amounts of less than one million yen have been rounded.
2.
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, profit,profit attributable to owners of the parent, and comprehensive income against the corresponding period of the previous year.

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

Total assets ............................................................
Total equity ...........................................................
Equity attributable to owners of the parent ...........
Ratio of equity attributable to owners of theparent to total assets (%) .......................................

Yen (millions)
As of March 31, 2023
As of June 30, 2023
1,099,351
1,080,933
775,699
816,801
769,247
809,902
70.0%

74.9%

Note: Amounts of less than one million yen have been rounded.

2. Dividend Information
YenFor the year ended
March 31, 2023

For the year ending
March 31, 2024
(Forecast)

10.0011.00
21.00

10.00
(Note)(Note)Cash dividend per share:
Interim .................................................................
Year-end ..............................................................
Total ....................................................................

Notes:
1. The forecast for cash dividend announced on April 27, 2023 has not been revised.
2. The projected amount of dividends for the year ending March 31, 2024 has not been determined yet. For further details, refer
to “Explanation regarding proper use of business forecast, and other significant matters” on page 2.

English translation of "KESSAN TANSHIN" originally issued in Japanese13. Consolidated Financial Forecast for the year ending March 31, 2024 (From April 1, 2023 to March 31, 2024)
Yen (millions)
For the year ending
March 31, 2024(%)
Revenue .............................................................................................
680,000(11.1）
Operating profit .................................................................................
55,00094.7
Profit before income taxes.................................................................
47,00096.8
Profit attributable to owners of the parent .........................................
33,300184.5
YenProfit attributable toOwners of the parent per share(Basic) ..............................................
122.63
Notes:
1. Changes of the forecasts from the most recent disclosure: No
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes and profit
attributable to owners of the parent against the previous year.

4. Others(1) Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes inscope of consolidation during the quarter): None
(2) Changes in accounting policies and accounting estimates:
1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimate: None
(3) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury shares): As of June 30, 2023:
As of March 31, 2023:

280,017,520
280,017,520

2. Number of treasury shares:

As of June 30, 2023:
As of March 31, 2023:

10,674,514
8,475,674

3. Average number of shares outstanding:

For the three months ended June 30, 2023:
For the three months ended June 30, 2022:

270,831,718
271,532,359

Makita’s earnings releases (KESSAN TANSHIN) are not subject to an audit.
Explanation regarding proper use of business forecasts, and other significant matters
1. The financial forecast given above is based on information as available at the present time, and includes potential
risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts
provided above. Regarding the assumptions for the forecasts and other matters, refer to “SUPPLEMENTINFORMATION (CONSOLIDATED)”, “1. Overview of operating results”, “(3) Outlook for the fiscal year ending
March 31, 2024” on page 3.
2. Makita's basic policy on the distribution of profits is to maintain the total return ratio(*) at 35% or greater, with alower limit on annual cash dividends of 20 yen per share. However, in the event special circumstances arise,computation of the amount of dividends will be based on profit attributable to owners of the parent per share after
certain adjustments.
The Board of Directors plans to meet in April 2024 for a report on earnings for the year ending March 31, 2024. Atthe 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 35% of total return attributable to owners of the parent. The Boardof Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2024.
Cash dividend per share +*Total return ratio =Total amount of purchased
treasury shares during the year

Average number ofshares outstanding

×100

Profit attributable to owners of the parent per share (Excluding special factors)

English translation of "KESSAN TANSHIN" originally issued in Japanese

2

SUPPLEMENT INFORMATION (CONSOLIDATED)
1. Overview of operating results(1) Overview of operating results of the three month ended June 30, 2023
Looking at the international economic situation during the first quarter of the current fiscal year, business
confidence deteriorated with the prolonged conflict in Ukraine, high raw material, energy prices, and continued
monetary tightening in various countries due to high inflation.
In the Group’s consolidated business results for the first quarter of the current fiscal year, sales remained weak due
to slowing demand for housing and reduced investment in the building and construction market owing to monetary
tightening in various countries, and consolidated revenue decreased by 5.6% year on year to 184,455 million yen. In
terms of profit, operating profit increased by 7.1% year on year to 16,311 million yen (an operating profit ratio of8.8%) because of the impact of foreign exchange rates and a decrease in selling, general, and administrative expenses.
Profit before income taxes increased by 2.1% year on year to 16,045 million yen (profit before income taxes ratio of8.7%) and profit attributable to owners of the parent increased by 5.9% year on year to 11,185 million yen (a ratio ofprofit attributable to owners of the parent of 6.1%).
Revenue results by region were as follows:
Revenue by region shows revenue in each market and differs from revenue in Segment Information (based on thesource of shipments).
In Japan, housing starts remained weak and sales were at a high level in the same period of the previous fiscal year.
As a result, revenue decreased by 4.6% year on year to 29,978 million yen.
In Europe, although the increases in energy and raw material prices began to subside, there was no improvement inmarket conditions, and sales declined. As a result, revenue decreased by 5.3% year on year to 89,249 million yen.
In North America, high inflation and the associated monetary tightening continued and the economy slowed further.
As a result, revenue decreased by 10.9% year on year to 24,822 million yen.
In Asia, amid a slowdown in the Chinese economy, demand for tools remained weak overall although there werestrengths and weaknesses from country to country. As a result, revenue decreased by 4.1% year on year to 11,115
million yen.
In Central and South America, there was increased uncertainty concerning the future due to continued monetary
tightening in various countries. As a result, revenue decreased by 6.4% year on year to 11,209 million yen.
In Oceania, the outlook remained uncertain as a result of monetary tightening due to high inflation and sales ofoutdoor power equipment declined due to unfavorable weather conditions. As a result, revenue decreased by 3.9% year
on year to 14,391 million yen.
In the Middle East and Africa, demand for construction and refurbishment remained strong overall. As a result,revenue increased by 10.5% year on year to 3,691 million yen.

(2) Overview of financial situation as of June 30, 2023
Total assets decreased 18,418 million yen from the end of the previous fiscal year to 1,080,933 million yen. Thisdecrease was mainly due to the decrease in “Cash and cash equivalents.”
Total liabilities decreased 59,520 million yen from the end of the previous fiscal year to 264,132 million yen. Thisdecrease was mainly due to the reduction in “Borrowings.”
Total equity increased 41,102 million yen from the end of the previous fiscal year to 816,801 million yen. This
increase was mainly due to the change in exchange differences on translating foreign operations included in “Othercomponents of equity.”(3) Outlook for the fiscal year ending March 31, 2024
There are uncertainties about the business environments surrounding us and developments in exchange markets.
Therefore, we have not reviewed the forecast of its consolidated financial performance for the year ending March 31,
2024 announced on April 27, 2023.

English translation of "KESSAN TANSHIN" originally issued in Japanese32. Consolidated Financial Statements (Unaudited)(1) Consolidated Statement of Financial Position
Yen (millions)
As of March 31, 2023
As of June 30, 2023
Composition ratio

Composition ratio

ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................................

162,720

137,678

Trade and other receivables ..............................

110,884

109,785

Inventories ........................................................

453,752

445,975

Other financial assets ........................................

6,970

5,111

Other current assets ..........................................

19,113

21,167

Total current assets ........................................

753,43968.5%

719,716

66.6%

NON-CURRENT ASSETS:
Property, plant and equipment, at cost ..............

265,638

276,507

Goodwill and intangible assets .........................

10,427

10,444

Other financial assets ........................................

36,60739,903Retirement benefit assets ..................................

12,157

12,141

Deferred tax assets ............................................

17,901

18,761Other non-current assets ...................................

3,182

3,461

Total non-current assets .................................

345,91231.5%

361,217

33.4%

Total assets ..............................................................

1,099,351

100.0%

1,080,933

100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese

4Yen (millions)
As of March 31, 2023
As of June 30, 2023
Composition ratio

Composition ratio

LIABILITIES AND EQUITY
LIABILITIESCURRENT LIABILITIES:
Trade and other payables ................................

41,767

40,685

Borrowings .....................................................

186,390

124,725

Other financial liabilities.................................

7,504

10,710

Income taxes payable ......................................

3,757

5,395

Provisions .......................................................

4,623

4,961

Other current liabilities ...................................

47,552

41,923

Total current liabilities .................................

291,59326.5%

228,399

21.1%

NON-CURRENT LIABILITIES:
Retirement benefit liabilities .............................

2,830

3,062

Other financial liabilities.................................

14,835

16,562

Provisions .......................................................

1,618

1,721

Deferred tax liabilities.....................................

12,57614,186

Other non-current liabilities ............................

200

202

Total non-current liabilities ..........................

32,0592.9%35,733

3.3%

Total liabilities .......................................................

323,652

29.4%

264,132

24.4%

EQUITY
Share Capital ...................................................

23,80523,805

Capital Surplus ................................................

45,60645,614Retained earnings ............................................

629,314

637,512

Treasury shares ...............................................

(11,528)(20,140)

Other components of equity ............................

82,050123,111

Total equity attributable to owners of the parent ...

769,24770.0%

809,902

74.9%

NON-CONTROLLING INTEREST .....................

6,452

0.6%

6,899

0.7%

Total equity ............................................................

775,69970.6%

816,801

75.6%

Total liabilities and equity .....................................

1,099,351

100.0%

1,080,933

100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese5(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income
Consolidated Statements of Profit or Loss
Yen (millions)
For the three months
For the three months
ended June 30, 2023
ended June 30, 2022
Ratio to revenue

Ratio to revenue

REVENUE...............................................................................

195,348 100.0%

184,455

100.0%

Cost of sales .............................................................................

(139,075) (71.2%)(127,501)(69.1%)GROSS PROFIT......................................................................

56,27328.8%

56,95430.9%

Selling, general, administrative and others, net .......................

(41,045) (21.0%)(40,643)(22.1%)OPERATING PROFIT ............................................................

15,22816,311

8.8%

Financial income......................................................................

836

1,131

Financial expenses ...................................................................

(345)(1,397)

PROFIT BEFORE INCOME TAXES .....................................

15,719

Income tax expenses ................................................................

(5,283)

PROFIT ...................................................................................

10,436

5.3%

11,167

6.1%

Owners of the parent................................................................

10,563

5.4%

11,185

6.1%

Non-controlling interests .........................................................

(127)(0.1%)(18)(0.0%)

7.8%

8.0%

16,045

8.7%(4,878)

Profit attributable to:Consolidated Statements of Comprehensive Income
Yen (millions)
For the three months
For the three months
ended June 30, 2023
ended June 30, 2022
10,436

11,167through other comprehensive income (loss) ............................

(534)

1,616

Total of items that will not be reclassified to profit (loss) ...........

(534)

1,616

Exchange differences on translating foreign operations ..........

46,52339,910Total of items that may be reclassified to profit (loss) ...............

46,52339,910Total other comprehensive income (loss), net of tax ...................

45,98941,526COMPREHENSIVE INCOME ...................................................

56,42552,693

Owners of the parent ................................................................

56,22352,246

Non-controlling interests .........................................................

202

447

PROFIT .......................................................................................
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Items that will not be reclassified to profit (loss)
Equity financial goods measured at fair value

Items that may be reclassified to profit or loss

Comprehensive income attributable to:English translation of "KESSAN TANSHIN" originally issued in Japanese

6(3) Consolidated Statement of Changes in Equity
Yen (millions)
For the three months ended June 30, 2022
Equity attributable to owners of the parent
SharecapitalBalance at April 1, 2022

CapitalSurplus23,80545,585

Profit for the period

Retainedearnings

TreasurysharesOther
componentsof equity

640,577(11,540)

47,917

Comprehensive income--Dividends paid

10,563-

6,186

752,530

10,563(127)

10,43645,66045,66032945,989

45,66056,223

202

56,425(16,835)(16,835)(1)(1)

99(135)--(1)

Share-based paymenttransaction
Transfer from othercomponents of equity toretained earnings

9135

Total amounts of transactions
with owners

Totalequity

746,344(16,835)

Purchase of treasury shares

Balance at June 30, 2022

Total

10,563

Other comprehensive income

NonControllinginterest-

9(16,700)

(1)

(135)

(16,827)-(16,827)

23,80545,594

634,440(11,541)

93,442785,740

6,388

792,128

Yen (millions)
For the three months ended June 30, 2023Equity attributable to owners of the parent
SharecapitalBalance at April 1, 2023

CapitalSurplus23,80545,606

Profit for the period

Retainedearnings

TreasurysharesOthercomponentsof equity629,314(11,528)

82,050Comprehensive income--Dividends paid

11,185-

Total amounts of transactions
with owners
Balance at June 30, 2023

775,699

11,185(18)

11,16741,061

41,061

465

41,526

41,061

52,246447

52,693(8,612)

Share-based paymenttransaction

Total
equity6,452(2,987)Purchase of treasury shares

Total
769,247

11,185

Other comprehensive income

NonControllinginterest

8(2,987)(2,987)(8,612)(8,612)88-

8(2,987)(8,612)-(11,591)-(11,591)

23,80545,614

637,512(20,140)

123,111

809,9026,899

816,801

English translation of "KESSAN TANSHIN" originally issued in Japanese7(4) Consolidated Statements of Cash Flows
Yen (millions)
For the three months
For the three months
ended June 30, 2023
ended June 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:Profit ....................................................................................................

10,436

11,167Depreciation and amortization .............................................................

5,528

7,146

Income tax expenses ............................................................................

5,283

4,878

Financial income and expenses............................................................

(491)

266

Loss (gain) on sales and retirement of property, plant and equipment .............

266

124

Decrease (increase) in trade and other receivables ..............................

8,819

8,252

Decrease (increase) in inventories .......................................................

(10,016)

38,252

Increase (decrease) in trade and other payables ...................................

4,131(2,934)

Increase (decrease) in retirement benefit assets and liabilities ............

87

55

Other ....................................................................................................

(576)(11,321)

Subtotal ..........................................................................................

23,46755,885

Dividends received ..............................................................................

448

330

Interest received ...................................................................................

182

799

Interest paid .........................................................................................

(332)(1,123)

Income taxes paid ................................................................................

(12,091)(3,622)

Cash flows from operating activities .............................................

11,67452,269CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-current assets .............................................................

(11,580)(6,063)

Proceeds from sales of non-current assets ...........................................

70

227

Purchase of investments ......................................................................

(0)

(10)

Proceeds from sales and redemption of investments ..............................

803-Payments into time deposits ................................................................

(330)

(693)

Proceeds from withdrawal of time deposits .........................................

908

415

Other ....................................................................................................

(230)

(130)

Cash flows from investing activities ..............................................

(10,359)(6,254)

Net increase (decrease) in short-term borrowings .............................

55,468(65,670)

Purchase and sales of treasury shares, net ...........................................

(1)(8,612)

Cash dividends paid .............................................................................

(16,835)(2,987)

Repayment of lease liabilities ..............................................................

(1,130)(952)

Other ....................................................................................................

1,075

201

Cash flows from financing activities .............................................

38,577(78,020)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS ......................................................................

(2,617)

6,963

NET CHANGE IN CASH AND CASH EQUIVALENTS .................

37,275(25,042)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ...

71,057

162,720

CASH AND CASH EQUIVALENTS, END OF PERIOD .................

108,332

137,678

CASH FLOWS FROM FINANCING ACTIVITIES:English translation of "KESSAN TANSHIN" originally issued in Japanese8(5) Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
Changes in accounting policy:
The Group has applied the following standards and interpretations from the current fiscal year as follows:
IFRS

IAS 12Title

Time of compulsory
application (fiscal year
starting after that)

Income Taxes

January 1,2023

Fiscal year in which
it applies to theGroup

Overview

Fiscal year ending
March 2024

Disclosure of income taxes arising fromtax laws enacted or substantially enactedto introduce the Pillar Two Model Rules
published by the Organization for
Economic Cooperation and Development(OECD).

The application of the standard, etc. has no material impact on the condensed quarterly consolidated financialstatements.

Segment Information
Yen (millions)
For the three months ended June 30, 2022
North
Asia
Total
OtherAmerica

Eliminations

Consolidated

27,815
177(127,785)

195,348-

295,141

27,992(127,785)

195,348

15,201

2,061(2,034)

15,228

Yen (millions)
For the three months ended June 30, 2023
North
Asia
Total
OtherAmerica

Eliminations

Consolidated

JapanEurope

Inter-segment ............

35,73464,29795,084
4,372

28,512
1,316

8,203
57,623

167,533
127,608

Total ................

100,031

99,45629,82865,826

Operating profit (loss)...

5,796

6,251(232)3,386

Revenue:
Externalcustomers ..................

JapanEurope

Inter-segment ............

34,27940,94690,1402,127

25,581860

8,062
55,430

158,062
99,363

26,393
77(99,440)

184,455-

Total ................

75,22592,267

26,441

63,492

257,425

26,470(99,440)

184,455

Operating profit (loss)...

7,417

2,956

(3,262)

6,207

13,318

1,062

1,931

16,311

Revenue:
Externalcustomers ..................

English translation of "KESSAN TANSHIN" originally issued in Japanese

93. SUPPORT DOCUMENTATION (CONSOLIDATED)(1) Consolidated Financial Results and Forecast
Yen (millions)
For the three months
For the three months
ended June 30, 2023
ended June 30, 2022(%)

Revenue ...............................................................................................
Domestic .........................................................................................
Overseas ..........................................................................................
Operating profit ...................................................................................
Profit before income taxes ...................................................................
Profit attributable to owners of the parent ...........................................
Profit attributable to owners of the parent per share (Yen) ..................
Number of Employees .........................................................................

195,348
31,414
163,934
15,52815,71910,5635.4
4.5
5.6(46.3)(47.4)(51.1)

38.90
20,107(%)

184,455
29,978
154,477
16,311
16,045
11,185

(5.6)
(4.6)
(5.8)
7.1
2.1
5.9

41.30
18,290Yen (millions)
For the year ending
For the year ended
March 31, 2024
March 31, 2023
(Forecast)
Revenue ..............................................................................................
Domestic ........................................................................................
Overseas .........................................................................................
Operating profit ..................................................................................
Profit before income taxes ..................................................................
Profit attributable to owners of the parent ..........................................
Profit attributable to owners of the parent per share (Yen) .................
Number of Employees ........................................................................

(%)

(%)

764,7023.4
122,978
4.2
641,724
3.3
28,246 (69.2)
23,887 (74.2)
11,705 (81.9)
43.11
18,804680,000(11.1)
122,000(0.8)
558,000(13.0)
55,00094.7
47,00096.8
33,300184.5
122.63-Notes:1. Please refer to 1. Overview of operating results Section 3 “Outlook for the fiscal year ending March 31, 2024” on page 3.
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, and profit
attributable to owners of the parent compared to the corresponding period of the previous year.

English translation of "KESSAN TANSHIN" originally issued in Japanese10(2) Consolidated Revenue by Geographic Area
For the three months
ended June 30, 2022

Yen (millions)
For the three months
ended June 30, 2023

For the year ended
March 31, 2023

(%)

(%)

(%)

Japan ................................................................
31,414
4.5
29,978(4.6)
122,978
4.2
Europe..............................................................
94,204
3.1
89,249(5.3)
348,994(1.0)
North America .................................................
27,850(2.7)
24,822 (10.9)
119,064
6.1
11,115(4.1)
53,276
8.3
Asia ..................................................................
11,592
13.4
Central and South America ..............................
11,97723.7
11,209(6.4)
47,256
13.1
Oceania ............................................................
14,97024.2
14,391(3.9)
58,59313.6
3,691 (10.5)
14,541
4.2
The Middle East and Africa .............................
3,341
2.2
Total .................................................................
195,348
5.4
184,455(5.6)
764,702
3.4
Notes: 1. The table above sets forth Makita's consolidated revenue by geographic area based on the customer’s location
for the periods presented. Accordingly, it differs from “Segment Information” on page 9.
2. The table shows the changes in the percentage ratio of revenue compared to the corresponding period of theprevious year.

(3) Exchange Rates
Yen
For the threemonths ended
June 30, 2022

For the threemonths ended
June 30, 2023

129.73138.26
19.60

137.49149.58
19.56

USD/JPY ................................................
EUR/JPY ................................................
RMB/JPY ...............................................

For the year
ended March 31,
2023
135.50140.9919.75

For the yearending March31, 2024
(Forecast)130
140
19.0(4) Production Ratio (unit basis)
For the threemonths ended
June 30, 2022
Composition ratio

Domestic .....................................................................
Overseas .....................................................................

9.2%
90.8%

For the threemonths ended
June 30, 2023
Composition ratio

8.9%
91.1%

For the year
ended
March 31, 2023
Composition ratio

7.9%
92.1%

(5) Consolidated Capital Expenditures, Depreciation and Amortization, and R&D costs
Yen (millions)

Capital expenditures ..................
Depreciation and amortization ...
R&D costs .................................

For the threemonths ended
June 30, 2022

For the threemonths ended
June 30, 2023

For the year
ended
March 31, 2023

For the yearending
March 31, 2024
(Forecast)

11,580
4,481
3,703

6,063
6,102
3,686

39,08821,725
14,90330,00023,70015,500English translation of "KESSAN TANSHIN" originally issued in Japanese11