(Summary English Translation of the Notice of the 111th Ordinary General Meeting of Shareholders Originally Issued inJapanese Language)

MAKITA CORPORATION(Stock code: 6586)
June 6, 2023
(Measures for electronic provision have commenced on June 1, 2023)
To the Shareholders of
MAKITA CORPORATIONNOTICE OF THE 111TH ORDINARY GENERAL MEETING OF SHAREHOLDERS

You are respectfully requested to attend the 111th Ordinary General Meeting of Shareholders of MAKITA CORPORATION,
which is hereby announced.
We have taken measures for the electronic convocation of this General Meeting of Shareholders, and the matters subject tomeasures for electronic convocation as the “Notice of the 111th Ordinary General Meeting of Shareholders”, have been postedon the website shown below.
・The website of the Corporation: https://www.makita.biz/ir/event/event_03.html
In addition to the above, the information is also made available on the following website on the Internet.
・The website of the Tokyo Stock Exchange (Listed Company Search):https://www2.jpx.co.jp/tseHpFront/JJK020010Action.do?Show=Show
Please access the website above, search by entering the Company’s name or securities code, and select “Basic information”
then “Documents for public inspection/PR information” to view the matters.
Makita Corporation

Tokyo Stock Exchange

Instead of attending the meeting, you may exercise your voting rights by mail or via the Internet in advance. Please review thematters subject to measures for electronic convocation and exercise the rights by 5 p.m., Tuesday, June 27, 2023.
Munetoshi Goto
President
MAKITA CORPORATION
3-11-8, Sumiyoshi-cho, Anjo City,
Aichi Prefecture, 446-8502, Japan
1.

Date and Time: 10 a.m., Wednesday, June 28, 2023

2.

Place:

3.

Agenda:Items to be Reported:
1. The Business Report, Consolidated Financial Statements for the 111th period (from April 1, 2022 to March 31,2023) and the Audit Reports on such Consolidated Financial Statements by the Accounting Auditor and theHead Office of MAKITA CORPORATION, 5th Floor
3-11-8, Sumiyoshi-cho, Anjo City,
Aichi Prefecture, 446-8502, Japan

Audit & Supervisory Committee

2. The Financial Statements for the 111th period
Items to be Resolved:
No.1
Appropriation of Surplus
No.2
Election of 11 Directors (Excluding Directors Who Are Audit & Supervisory Committee Members)
No.3
Election of 4 Directors Who Are Audit & Supervisory Committee Members
No.4
Payment of Bonus to Directors- 1 -NOTE: The following matters among the matters subject to measures for the electronic convocation are notincluded in the paper copy to be sent to shareholders who have requested it as provided by laws andregulations and Article 14 of the Corporation’s Articles of Incorporation. The documents audited by the
Accounting Auditor and the Audit & Supervisory Committee in preparing their audit reports included
these matters.
・”Systems to ensure that Corporation’s operation will be conducted appropriately” and ”Implementation
status of systems necessary for ensuring that the Corporation’s operations are conducted appropriately”
in the business report.
・”Consolidated Statement of Charge in Equity” and “Notes to Consolidated Financial Statement” in the
consolidated financial statements.
・”Statement of Charges in Net Assets” and “Notes to Non-consolidated Financial Statement” in thefinancial statements.

- 2 -REFERENCE DOCUMENT
Propositions and Explanatory Information
Agenda Item No. 1: Appropriation of Surplus
The Corporation has its basic policy for profit distribution to propose the dividends with total return ratio of at least
35% of profit, with a minimum amount for annual total dividends at 20 yen per share; provided, however, that if
special circumstances arise, the amount of dividends will be determined based on profit attributable to owners of
the parent per share (Basic) after certain adjustments reflecting such circumstances.
In accordance with this basic policy for profit distribution, and based on our comprehensive review of theconsolidated business result for this period and forecasts and plans of our future businesses, we propose year-end
dividends to shareholders as follows.
As this dividend, the total dividends for this period under review shall amount to 21 yen per share that include
interim dividends in the amount of 10 yen per share, and the consolidated dividend payout ratio is 48.7 %.
1. Matters on allocation of dividends to shareholders and total amount of allocation
11 yen per share of common stock
Total amount: 2,986,960,306 yen
2. Effective date of dividend payment
June 29, 2023
Notes: The details of the above basic policy for profit distribution is described in “5. Policy on Determination of Dividends
from Surplus” (page 31).

- 3 -

Agenda Item No.2: Election of 11 Directors (Excluding Directors Who Are Audit & Supervisory Committee Members)
The term of offices of all 11 Directors (excluding Directors who are Audit & Supervisory Committee Members;
the same shall apply throughout this proposal) in office will have expired at the conclusion of this General Meetingof Shareholders, and we would like to request the election of 11 Directors.
Nomination of the candidates for Directors was consulted to the Nomination and Compensation Committee anddetermined at the Board of Directors based on the report.
The Audit & Supervisory Committee discussed this proposal and concluded that there are no special matters thatshould be stated at the General Meeting of Shareholders in accordance with the provisions of the Companies Act.
The candidates are as follows:

Candidate
NumberName

Current positions and responsibilities at the Corporation

Attendance
rate of theBoard ofDirectors
meetings

1

Masahiko Goto

ReelectionMan

Chairman and Representative Director

12/12(100%)

2

Munetoshi Goto

Reelection
Man

President and Representative Director

12/12(100%)

3

Shinichiro Tomita

Reelection
Man

Director, Corporate Officer
General Manager of Purchasing Headquarters

12/12(100%)

4

Tetsuhisa Kaneko

Reelection
Man

Director, Corporate Officer
General Manager of Research and Development
Headquarters

12/12(100%)

5

Tomoyuki Ota

Reelection
Man

Director, Corporate Officer
General Manager of Quality Headquarters

12/12(100%)

6

Takashi Tsuchiya

Reelection
Man

Director, Corporate Officer
General Manager of Domestic Sales Headquarters

12/12(100%)

7

Masaki Yoshida

Reelection
Man

Director, Corporate Officer
General Manager of Production Headquarters

12/12(100%)

8

Takashi Omote

Reelection
Man

Director, Corporate Officer
General Manager of International Sales Headquarters

12/12(100%)

9

Yukihiro Otsu

Reelection
Man

Director, Corporate Officer
General Manager of Administration Headquarters

12/12(100%)

Outside Director

12/12(100%)

Outside Director

12/12(100%)

10

Masahiro Sugino

11

Takahiro Iwase

Reelection
OutsideIndependentMan
Reelection
OutsideIndependent
Man

- 4 -

Candidate
Number

1

2

3

Name
(Date of birth)

Brief personal background, title and position and Important concurrent posts

March1971 Joined the Corporation
Reelection
May
1984 Director, Manager of Corporate Planning Department
Man
July
1987 Managing Director, General Manager of Administration
Masahiko Goto
Headquarters(November 16, 1946)
May
1989 President and Representative Director
2013 Chairman and Representative Director (present)[Attendance rate of the June
2022 Outside Director of HOSHIZAKI CORPORATION
Board of Directors March(present)
meetings](Important Concurrent Posts)
12/12
Outside Director of HOSHIZAKI CORPORATION(100%)[Reason for nomination as candidate for Director]
Mr. Masahiko Goto has been engaged in the management of the Corporation for many years servingas President as well as Chairman, and has contributed to the enhancement of corporate value. The
Corporation proposes his appointment as Director because we believe that his wealth of experienceand broad insight are indispensable for the management of the Corporation.
April
1999 Joined the Corporation
Reelection
April2012 General Manager of International Sales AdministrationMan
Department
Munetoshi Goto
June
2013
Director, Corporate Officer, General Manager of(April 26, 1975)
International Sales Headquarters
2017 President and Representative Director (present)[Attendance rate of the June
Board of Directors
meetings]
12/12(100%)[Reason for nomination as candidate for Director]
Mr. Munetoshi Goto has a deep understanding of the overall business and management of the
Corporation, with experience of serving as General Manager of International Sales Headquarters sinceJune 2013, as well as experience in domestic sales, development, and overseas sales subsidiaries. In
addition, he is leading the growth of the Corporation as President since June 2017. The Corporation
proposes his appointment as Director because we believe that his wealth of experience and insight aswell as his great leadership are indispensable for the management of the Corporation.
March
1974 Joined the Corporation
October
2000 General Manager of Plant Engineering-maintenanceReelection
Department
Man
October
2001 General Manager of Production Engineering Department
Shinichiro Tomita September 2003 President of Makita (China) Co., Ltd.
(January 11, 1951) June2007 Director, Assistant General Manager of Production
Headquarters of the Corporation (in charge of China[Attendance rate of the
Plant)
Board of Directors June2009 Director, Corporate Officer, General Manager of
meetings]
Research and Development Headquarters (in charge of
12/12
Product Development)(100%)
May
2010 Director, Corporate Officer, General Manager ofPurchasing Headquarters (present)[Reason for nomination as candidate for Director]
Mr. Shinichiro Tomita has held important positions in the production division, and has served as thehead of the production subsidiary in China, a core facility of the production division, and General
Manager of Research and Development Headquarters of the Corporation. He currently serves as
General Manager of Purchasing Headquarters and has a deep understanding of the business andmanagement mainly in the areas of purchasing, production, and development of the Corporation. The
Corporation proposes his appointment as Director because we believe that his wealth of experienceand insight are indispensable for the management of the Corporation.

- 5 -Number of the
Corporation’sshares held

2,566,552

472,818

19,595

Candidate
NumberName(Date of birth)

Brief personal background, title and position and Important concurrent posts
March
April
AugustOctober
June
June

4

5

6

1981
2004
2005
2006
2007
2009

Joined the Corporation
General Manager of Technical Research Department
Reelection
General Manager of Production Department 2
Man
General Manager of Production Department 1
Tetsuhisa Kaneko
Director, General Manager of Purchasing Headquarters(April 6, 1955)
Director, Corporate Officer, General Manager ofPurchasing Headquarters[Attendance rate of the May
2010 Director, Corporate Officer, General Manager ofBoard of Directors
Production Headquarters (in charge of China Plant)
meetings]
June2015 Director, Corporate Officer, General Manager of
12/12
Production Headquarters(100%)
June
2017 Director, Corporate Officer, General Manager ofResearch and Development Headquarters (present)[Reason for nomination as candidate for Director]
Mr. Tetsuhisa Kaneko has held important positions in the development division, and has served as thehead of the production subsidiary in China, a core facility of the production division, General Manager
of Purchasing Headquarters, and General Manager of Production Headquarters of the Corporation. He
currently serves as General Manager of Research and Development Headquarters and has a deep
understanding of the business and management mainly in the areas of development, production, andpurchasing of the Corporation. The Corporation proposes his appointment as Director because webelieve that his wealth of experience and insight are indispensable for the management of the
Corporation.
March
1978 Joined the Corporation
Reelection
October
2003 General Manager of Production Department 1
Man
August2005 General Manager of Products & Engineering
Tomoyuki Ota
Administration Department(March 22, 1956) July2012 General Manager of Products & Engineering
Administration Department and General Manager of[Attendance rate of the
Product Design & Development Department 1
Board of Directors June2013 Director, Corporate Officer, Assistant General Manager
meetings]
of Research and Development Headquarters
12/12
June
2021 Director, Corporate Officer, General Manager of Quality(100%)
Headquarters (present)[Reason for nomination as candidate for Director]
Mr. Tomoyuki Ota has experience of working at overseas production subsidiaries (in the U.S.), andhas held important positions in the production division, and has served as Assistant General Manager
of Research and Development Headquarters. He currently serves as General Manager of Quality
Headquarters and has a deep understanding of the business and management mainly in the areas ofquality, development, and production of the Corporation. The Corporation proposes his appointment
as Director because we believe that his wealth of experience and insight are indispensable for the
management of the Corporation.
March
1982 Joined the Corporation
Reelection
April2001 Manager of Shizuoka Branch OfficeMan
2003 Manager of Tokyo Branch Office
Takashi Tsuchiya October2010 General Manager of Sales Administration Department(September 1, 1957) April
June
2013 Corporate Officer, General Manager of Domestic Sales
Headquarters (in charge of Tokyo Sales Department)[Attendance rate of the2015 Director, Corporate Officer, General Manager ofBoard of Directors June
Domestic Sales Headquarters (present)
meetings]
12/12(100%)[Reason for nomination as candidate for Director]
Mr. Takashi Tsuchiya has held important positions mainly in the domestic sales operations of the
Corporation. He has served as General Manager of Domestic Sales Headquarters in charge of Tokyo
Sales Department as Corporate Officer since June 2013. He currently serves as General Manager ofDomestic Sales Headquarters as Director and Corporate Officer, and has a deep understanding of thebusiness and management mainly in the area of domestic sales of the Corporation. The Corporation
proposes his appointment as Director because we believe that his wealth of experience and insight are
indispensable for the management of the Corporation.

- 6 -Number of the
Corporation’sshares held

25,19520,095

20,795

Candidate
NumberName(Date of birth)

Joined the Corporation
General Manager of Production Control Department
General Manager of Production Department 2
General Manager of Production Development
Department
February
2012 Vice President of Makita (China) Co., Ltd.
[Attendance rate of the June2015 Director, Corporate Officer, Assistant General Manager
Board of Directorsof Production Headquarters of the Corporation (in charge
meetings]
of China Plant)
12/12
April
2018 Director, Corporate Officer, Assistant General Manager(100%)of Production Headquarters of the Corporation
June
2021 Director, Corporate Officer, General Manager of
Production Headquarter (present)[Reason for nomination as candidate for Director]
Mr. Masaki Yoshida has engaged in duties mainly in the production division of the Corporation, andhas served as the head of the production subsidiary in China, a core facility of the production division.
He served as Assistant General Manager of Production Headquarters since June 2015 and has served
as General Manager of Production Headquarters since June 2021, and has a deep understanding of thebusiness and management mainly in the area of production of the Corporation. The Corporation
proposes his appointment as Director because we believe that his wealth of experience and insight are
indispensable for the management of the Corporation.
March
1982 Joined the Corporation
Reelection
January
1995 President of Makita Mexico, S.A. de C.V.
Man
March
2001 President of Makita do Brasil Ferramentas Elétricas
Takashi Omote
Ltda.
(February 10, 1959)
June
2013 Corporate Officer of the Corporation (in charge ofCentral and South America Sales)[Attendance rate of the2017 Director, Corporate Officer, General Manager ofBoard of Directors June
International Sales Headquarters (present)
meetings]
12/12(100%)[Reason for nomination as candidate for Director]
Mr. Takashi Omote has engaged in duties mainly in the international sales operations of the
Corporation, and has experience of working for many years at overseas sales subsidiaries (in Brazil
and Mexico). He was placed in charge of Central and South America Sales in June 2013, and serves as
General Manager of International Sales Headquarters since June 2017. As such, he has a deep
understanding of the business and management mainly in the area of overseas sales of the Corporation.
The Corporation proposes his appointment as Director because we believe that his wealth ofexperience and insight are indispensable for the management of the Corporation.
March
1983 Joined the Corporation
Reelection
April2009 Assistant Manager of Finance Department
Man
December 2009 Vice President of Makita (China) Co., Ltd.
Yukihiro Otsu
2013 General Manager of Accounting Department of the(August 27, 1960) October
Corporation2017 Director, Corporate Officer, General Manager of[Attendance rate of the June
Administration Headquarters (present)
Board of Directors
meetings]
12/12(100%)[Reason for nomination as candidate for Director]
Mr. Yukihiro Otsu has held important positions in the finance division of the Corporation, and has awealth of experience in the administration divisions of overseas subsidiaries including the production
subsidiary in China, a core facility of the production division. He serves as General Manager of
Administration Headquarters since June 2017 and has a deep understanding of the business andmanagement mainly in the area of administration of the Corporation. The Corporation proposes his
appointment as Director because we believe that his wealth of experience and insight are indispensablefor the management of the Corporation.
ReelectionMan
Masaki Yoshida(June 17, 1962)

7

8

9

Brief personal background, title and position and Important concurrent posts
March
October
April
April

1985
2007
2010
2011

- 7 -

Number of the
Corporation’sshares held

12,915

10,835

10,435

Candidate
NumberName(Date of birth)

Brief personal background, title and position and Important concurrent posts
April
January

10

11

1967
1992

Jointed Ina Seito Co., Ltd. (present; LIXIL Corporation)
Director of INAX Corporation (“INAX”, past; Ina Seito
Co., Ltd.)
January
1996 Managing Director of INAX
January
2000 Senior Managing Director of INAX
Reelection
October
2001 President and Representative Director of INAX
OutsideJune
2007 Chairman and Representative Director of INAX
IndependentJune
2007 President and Representative Director of JS GroupMan
Corporation (present; LIXIL Corporation)
Masahiro Sugino
April2011 President and Representative Director of LIXIL(November 18, 1944)
CorporationJune
2011 Director and Advisor of LIXIL Corporation[Attendance rate of the June2013 Advisor of LIXIL Corporation
Board of Directors June2015 Outside Director of the Corporation (present)
meetings]
June2017 Outside Director of MISAWA HOMES CO., LTD.
12/12
February 2018 Outside Director of KITAKEI CO., LTD. (present)(100%)
July
2018 Special Advisor of LIXIL Corporation
January
2020 Advisor of LIXIL Corporation (present)(Important Concurrent Posts)
Advisor of LIXIL Corporation
Outside Director of KITAKEI CO., LTD.
[Reason for nomination as candidate for Outside Director and outline of the expected role]
Mr. Masahiro Sugino has participated in the management of LIXIL Group, including INAX, for many
years and has a thorough knowledge of corporate management, with which he currently provides
useful opinions on the management of the Corporation from a broad perspective. The Corporation
proposes his appointment as Outside Director because we expect him to utilize his wealth ofexperience and broad insight for the management of the Corporation from an independent perspective.
April
1977 Joined Toyota Motor Co., Ltd. (present; TOYOTA
MOTOR CORPORATION, “TOYOTA”)
June
2005 Managing Officer of TOYOTA
June
2009 Senior Managing Director of TOYOTA
Reelection
Outside Audit & Supervisory Board Member of Chuo
OutsideSpring Co., Ltd.
April
2011 Vice Chairman of the Board of Directors of Toyota Motor
Independent
Asia Pacific Pte. Ltd.
Man
June
2011 Senior Managing Officer of TOYOTA
Takahiro Iwase
June2014 President of TOYOTA AUTO BODY CO., LTD.
(May 28, 1952)
April
2016 Standing Counselor of Aichi Steel Corporation (“AICHISTEEL”)[Attendance rate of the2016 Chairman and Representative Director of AICHI STEEL
Board of Directors June
June2017 Outside Audit & Supervisory Board Member of Chuo
meetings]
Spring Co., Ltd.
12/12
July
2020 Chairman of Aichi Prefectural Public Safety Commission(100%)
March
2021 External Auditor of DMG MORI CO., LTD. (present)June
2021 Outside Director of the Corporation (present)(Important Concurrent Posts)
External Auditor of DMG MORI CO., LTD.
[Reason for nomination as candidate for Outside Director and outline of the expected role]
Mr. Takahiro Iwase has participated in the management of core companies of the Toyota Group,
including TOYOTA MOTOR CORPORATION, for many years and has a thorough knowledge ofcorporate management, with which he currently provides useful opinions on the management of the
Corporation from a broad perspective. The Corporation proposes his appointment as Outside Director
because we expect him to utilize his wealth of experience and broad insight for the management of the
Corporation from an independent perspective.

- 8 -Number of the
Corporation’sshares held_500

Notes: 1. There is no special interest between the above candidates and the Corporation.
2. The matters concerning Outside Director candidate Mr. Masahiro Sugino are as follows:(i)
Mr. Masahiro Sugino served as an executive officer of LIXIL Corporation. Makita sells products to
LIXIL Corporation and its corporate group. This year, such sales amounted to 3 million yen, whichconstituted less than 0.01% of our consolidated revenue.
(ii) Mr. Masahiro Sugino is currently an Outside Director of the Corporation, and his term of office will be 8
years at the conclusion of this General Meeting of Shareholders.
(iii) With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation hasentered into a liability limitation agreement with Mr. Masahiro Sugino which limits the maximum amountof his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1 of theCompanies Act. If Mr. Masahiro Sugino is appointed to be an Outside Director, the Corporation will
extend such liability limitation agreement.
(iv) The Corporation has designated Mr. Masahiro Sugino as an “Independent Director” as required by theregulations of the Tokyo Stock Exchange and the Nagoya Stock Exchange and made required notification
therefore to these stock exchanges. If Mr. Masahiro Sugino is elected, the Corporation intends to appoint
him again as an Independent Director.
3. The matters concerning Outside Director candidate Mr. Takahiro Iwase are as follows:(i)
Mr. Takahiro Iwase served as an executive officer of Aichi Steel Corporation. Makita purchases
components from Aichi Steel Corporation and its corporate group. This year, such purchase amounted to
777 million yen, which constituted less than 0.27% of the consolidated net sales of the Aichi Steel Group.
(ii) Mr. Takahiro Iwase is currently an Outside Director of the Corporation, and his term of office will be 2
year at the conclusion of this General Meeting of Shareholders.
(iii) With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation hasenterd into a liability limitation agreement with Mr. Takahiro Iwase which limits the maximum amount of
his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1 of theCompanies Act. If Mr. Takahiro Iwase is appointed to be an Outside Director, the Corporation will extend
such liability limitation agreement.
(iv) The Corporation has designated Mr. Takahiro Iwase as an “Independent Director” as required by theregulations of the Tokyo Stock Exchange and the Nagoya Stock Exchange and make required notification
therefore to these stock exchanges. If Mr. Takahiro Iwase is elected, the Corporation intends to appoint
him again as an Independent Director.
4. The number of the Corporation’s shares held by candidates for Directors represents the actual number ofshares each candidate holds, including those vested to him in Makita’s stock ownership plan for the
Executives.
5. The Corporation has entered into a directors and officers liability insurance contract stipulated in Article
430-3, Paragraph 1 of the Companies Act with all Directors and Corporate Officers as well as officers of thesubsidiaries (with regard to overseas subsidiaries, this is limited to officers temporarily transferred from the
Corporation and officers concurrently serving at the Corporation and overseas subsidiaries) as the insured toensure that executives can fully perform their expected roles in the course of their duties and to hire excellent
talents. If this proposal is approved as originally proposed and each candidate is appointed as Director, etc.,
they will be the insured under the said insurance contract. The said insurance contract covers damages caused
as a result of the insured executives, etc. assuming responsibilities regarding the execution of their duties or
receiving claims pertaining to the pursuit of such responsibilities. Provided, however, that there are certain
exemptions; for example, the insurance contract does not cover damages caused as a result of any conduct
committed with his or her knowledge that the conduct is in violation of laws and regulations. The premiums
are paid by the Corporation, including riders. Therefore, the insured does not bear the actual premiums. Also,
the said insurance contract will be renewed on June 29, 2023, which is during the term of office of eachcandidate.

- 9 -Agenda Item No.3: Election of 4 Directors Who Are Audit & Supervisory Committee Members
The term of offices of all 4 Directors who are Audit & Supervisory Committee Members; the same shall apply
throughout this proposal) in office will have expired at the conclusion of this General Meeting of Shareholders, andwe would like to request the election of 4 Directors who are Audit & Supervisory Committee Members.
The candidates are as follows:
The Audit & Supervisory Committee has agreed to this proposal.

Candidate
Number

1

Name

Mitsuhiko
Wakayama

2

Shoji Inoue

3

Koji Nishikawa

4

Ayumi Ujihara

Reelection
Man
Reelection
OutsideIndependentMan
Reelection
OutsideIndependentMan
New election
OutsideIndependent
Woman

Current positions at the Corporation

Attendance
rate of theBoard ofDirectors
meetings

Attendance
rate of Audit&
Supervisory
Committee
meetings

Director (Standing Audit & Supervisory
Committee Member)

12/12(100%)

14/14(100%)

Outside Director (Audit & Supervisory
Committee Member)

12/12(100%)

14/14(100%)

Outside Director (Audit & Supervisory
Committee Member)

12/12(100%)

14/14(100%)―――- 10 -

Candidate
NumberName(Date of birth)

Brief personal background, title and position and Important concurrent posts

March
Reelection
OctoberMan
Mitsuhiko Wakayama April
June(July 6, 1956)

1

2

1981
2007
2012
2016

Joined the Corporation
General Manager of America Sales Department
General Manager of Latin America Sales Department
Standing Audit & Supervisory Board Member of the
Corporation
2021 Director (Standing Audit & Supervisory Committee
Member) (present)[Attendance rate of the June
Board of Directors
meetings]
12/12(100%)[Attendance rate of the
Audit & Supervisory
Committee meetings]
14/14(100%)[Reason for nomination as candidate for Director who is an Audit & Supervisory Committee Member]
Mr. Mitsuhiko Wakayama has a deep understanding of the business of the Corporation because he has
experience of working at overseas sales subsidiaries (in Canada and Spain) and has held important
positions mainly in international sales division. The Corporation proposes his appointment as Director
who is an Audit & Supervisory Committee Member because we believe that his wealth of experienceand insight are indispensable for the audit and supervision of the management of the Corporation.
April
1991 Attorney-at-law, admitted and belonging to the Nagoya
Reelection
Bar Association [ present; Aichi Bar Association]
OutsideApril
1991
Joined Katayama Kinji Law Firm
Independent
July
2009
Established Inoue Shoji Law Firm
Man
October
2010
Appointed as a Civil Conciliator at Nagoya Summary
Shoji Inoue
Court(July 29, 1957)
October
2013 Established Sao & Inoue Law Firm [present; Inoue Shoji
Law Firm] (present)[Attendance rate of the
June
2015
Outside Director of Meitetsu Transport Co., Ltd.
Board of Directors
June2016 Outside Audit & Supervisory Board Member of themeetings]
Corporation
12/12
June
2021
Outside Director of Okuma Corporation (present)(100%)
2021 Outside Director of the Corporation (Audit &[Attendance rate of the June
Supervisory Committee Member) (present)
Audit & Supervisory(Important
Concurrent
Posts)
Committee meetings]
Attorneyat
Law(InoueShoji Law Firm)
14/14
Outside Director of Okuma Corporation(100%)[Reason for nomination as candidate for Outside Director who is an Audit & Supervisory Committee
Member and outline of the expected role]
Mr. Shoji Inoue has extensive knowledge and expertise gained through his practice as attorney at law,with which he currently provides useful opinions from the professional perspective. The Corporation
proposes his appointment as Outside Director who is an Audit & Supervisory Committee Member
because we expect him to utilize his wealth of experience and insight to audit and supervise themanagement of the Corporation from an independent perspective.

- 11 -

Number of the
Corporation’sshares held

10,200500

Candidate
NumberName(Date of birth)

Brief personal background, title and position and Important concurrent posts

1988 Joined Aoyama Audit Corporation
1992 Registered as a certified public accountant
2000 Joined ChuoAoyama Audit Corporation (formed by amerger with Chuo Audit Corporation)
Appointed as Partner of ChuoAoyama Audit Corporation
September 2006 Joined PricewaterhouseCoopers Aarata (present;
PricewaterhouseCoopers Aarata LLC)
Appointed as Partner of PricewaterhouseCoopers Aarata[Attendance rate of the July
2018 Representative of Nishikawa Koji Accounting Firm
Board of Directors(present)
meetings]
April2020 Joined Seimei Audit Corporation
12/12
June
2020 Representative Partner of Seimei Audit Corporation(100%)(present)
3200[Attendance rate of the June
2021 Outside Director of the Corporation (Audit & Supervisory
Audit & Supervisory
Committee Member) (present)
Committee meetings] (Important Concurrent Posts)
14/14
Representative of Nishikawa Koji Accounting Firm
(100%)
Representative Partner of Seimei Audit Corporation[Reason for nomination as candidate for Outside Director who is an Audit & Supervisory Committee
Member and outline of the expected role]
Mr. Koji Nishikawa has extensive knowledge and expertise in corporate accounting audits as acertified public accountant, with which he currently provides useful opinions from the professional
perspective. The Corporation proposes his appointment as Outside Director who is an Audit &Supervisory Committee Member because we expect him to utilize his wealth of experience and insight
to audit and supervise the management of the Corporation from an independent perspective.
April
1984 Joined BROTHER INDUSTRIES, LTD.
March
1994 Joined Itoh Accounting Firm
April2000 Joined Tokai Local Finance Bureau (financial securities
inspector)
July
2003 Joined ChuoAoyama Audit Corporation
New election
August2006 Joined PricewaterhouseCoopers Arata (currently
OutsidePricewaterhouseCoopers Arata LLC)
IndependentJuly
2015 Partner of PricewaterhouseCoopers Arata
Woman
July
2022 Representative of Ayumi Ujihara CPA office (present)
Ayumi Ujihara
March2023 Outside Audit & Supervisory Board Member of Yamaha(September 12, 1961)
Motor Co., Ltd. (present)May
2023 Partner of Kagayaki Audit Corporation (present)
4_(Important Concurrent Posts)
Representative of Ayumi Ujihara CPA officeOutside Audit & Supervisory Board Member of Yamaha Motor Co., Ltd.
Partner of Kagayaki Audit Corporation[Reason for nomination as candidate for Outside Director who is an Audit & Supervisory Committee
Member and outline of the expected role]
Ms. Ayumi Ujihara has extensive insight regarding finance and accounting as a certified public
accountant and wealth of experience in auding global companies. The Corporation proposes her
appointment as Outside Director who is an Audit & Supervisory Committee Member because we
expect her to utilize to audit and supervise the management of the Corporation from an independent
perspective.
Notes: 1. There is no special interest between the above candidates and the Corporation.
2. The matters concerning Director who is an Audit & Supervisory Committe Member candidate Mr. Mitsuhiko
Wakayama are as follows:(i)With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation hasentered into a liability limitation agreement with Mr. Mitsuhiko Wakayama which limits the maximum
amount of his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1of the Companies Act. If Mr. Mitsuhiko Wakayama is appointed to be Director who is an Audit &Supervisory Committee Member, the Corporation will extend such liability limitation agreement.
3. The matters concerning Outside Director who is an Audit & Supervisory Committe Member candidate Mr.
Shoji Inoue are as follows:(i)
Futamura Chemical Co., Ltd., for which Mr. Shoji Inoue currently serves as Outside Audit & Supervisory
Board Member, received a cease and desist order and a surcharge payment order from the Japan Fair
Trade Commission on November 22, 2019 for violating the provisions of Article 3 of the Act on
Prohibition of Private Monopolization and Maintenance of Fair Trade in connection with transactions for
specific Activated Carbon and specific Granular Activated Carbon. Mr. Shoji Inoue was not aware of theReelection
OutsideIndependent
Man
Koji Nishikawa(November 1, 1957)

October
AugustApril

Number of the
Corporation’sshares held

- 12 -

relevant facts in advance; however, he had regularly called attention to legal compliance at Audit &Supervisory Board and other occasions. Moreover, since the relevant facts were identified, Mr. Shoji
Inoue has been duly performing his duties by making recommendations to strengthen the legal
compliance system of the company and prevent recurrences thoroughly, among other things.
(ii)
Mr. Shoji Inoue is currently an Outside Director who is an Audit & Supervisory Committe Member of the
Corporation, and his term of office will be 2 years at the conclusion of this General Meeting of
Shareholders.
(iii) With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation hasentered into a liability limitation agreement with Mr. Shoji Inoue which limits the maximum amount of
his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1 of theCompanies Act. If Mr. Shoji Inoue is appointed to be an Outside Director who is an Audit & Supervisory
Committee Member, the Corporation will extend such liability limitation agreement.
(iv) The Corporation has designated Mr. Shoji Inoue as an “Independent Director / Audit & Supervisory
Board Member” as required by the regulations of the Tokyo Stock Exchange and the Nagoya Stock
Exchange and made required notification therefore to these stock exchanges. If Mr. Shoji Inoue is elected,
the Corporation intends to appoint him again as an Independent Director.
4. The matters concerning Outside Director who is an Audit & Supervisory Committe Member candidate Mr.
Koji Nishikawa are as follows:(i)
Mr. Koji Nishikawa is currently an Outside Director who is an Audit & Supervisory Committe Memberof the Corporation, and his term of office will be 2 years at the conclusion of this General Meeting of
Shareholders.
(ii) With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation hasentered into a liability limitation agreement with Mr. Koji Nishikawa which limits the maximum amountof his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1 of theCompanies Act. If Mr. Koji Nishikawa is appointed to be an Outside Director who is an Audit &Supervisory Committee Member, the Corporation will extend such liability limitation agreement.
(iii) The Corporation has designated Mr. Koji Nishikawa as an “Independent Director / Audit & Supervisory
Board Member” as required by the regulations of the Tokyo Stock Exchange and the Nagoya Stock
Exchange and made required notification therefore to these stock exchanges. If Mr. Koji Nishikawa is
elected, the Corporation intends to appoint him again as an Independent Director.
5. The matters concerning Director who is an Audit & Supervisory Committe Member candidate Ms. Ayumi
Ujihara are as follows:(i)With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation
intends to enter into a liability limitation agreement with Ms. Ayumi Ujihara which limits the maximum
amount of his liabilities to the total amount provided for in each of the items of Article 425, Paragraph 1of the Companies Act.
(ii) The Corporation intends to designate Ms. Ayumi Ujihara as an “Independent Director / Audit &Supervisory Board Member” as required by the regulations of the Tokyo Stock Exchange and the Nagoya
Stock Exchange and make required notification therefore to these stock exchanges.
6. The number of the Corporation’s shares held by candidates for Directors who are Audit & Supervisory
Committe Members represents the actual number of shares each candidate holds, including those vested tothem in Makita’s stock ownership plan for the Executives.
7. The Corporation has entered into a directors and officers liability insurance contract stipulated in Article
430-3, Paragraph 1 of the Companies Act with all Directors and Corporate Officers as well as officers of thesubsidiaries (with regard to overseas subsidiaries, this is limited to officers temporarily transferred from the
Corporation and officers concurrently serving at the Corporation and overseas subsidiaries) as the insured toensure that executives can fully perform their expected roles in the course of their duties and to hire excellent
talents. If this proposal is approved as originally proposed and each candidate is appointed as Director, etc.,
they will be the insured under the said insurance contract. The said insurance contract covers damages caused
as a result of the insured executives, etc. assuming responsibilities regarding the execution of their duties or
receiving claims pertaining to the pursuit of such responsibilities. Provided, however, that there are certain
exemptions; for example, the insurance contract does not cover damages caused as a result of any conduct
committed with his or her knowledge that the conduct is in violation of laws and regulations. The premiums
are paid by the Corporation, including riders. Therefore, the insured does not bear the actual premiums. Also,
the said insurance contract will be renewed on June 29, 2023, which is during the term of office of eachcandidate.

- 13 -

Reference The composition and expertise of the Board of Directors
Directors of the Corporation, regardless of age, gender, or nationality, shall be appointed from among those
who can contribute to the enhancement of its corporate value. We have appointed Internal Directors(excluding Director who is Audit & Supervisory Committee Member) who have the ability to formulate andexecute management strategies based on their own experience and insight, Outside Directors (excluding
Directors who are Audit & Supervisory Committee Members) who have a wealth of experience and broad
insight in corporate management, and Directors who are Audit & Supervisory Committee Members who haveinternal and external work experience and a wealth of experience and insight in various fields, including
finance, accounting and legal affairs. Moreover, a number of Directors with overseas experience are in office.
We, therefore, believe that the Board of Directors as a whole is functioning as an effective organization that
ensures an appropriate balance and diversity of knowledge, experience and ability. However, while fulfilling
our roles and responsibilities, such as making the appropriate management decisions and overseeing theexecution out of operations more effectively, we will continue to consider ensuring diversity in thecomposition of the Board of Directors, including aspects such as skills, experience, gender andinternationality. We also believe that the current Board of Directors is of an appropriate size to enable prompt
decision-making.

The composition of the Board of Directors(The ratio of Independent Outside Directors)

5/15

33.3%
10 Internal Directors- 14 -

5 Independent
Outside Directors(including 1 woman)Directors who are Audit & Supervisory
Committee Members

Directors

Name

The Nomination
andCorporate
Compensation
management
Committee

Expertise
Overseas
experience

Sales/
marketing

Development

Production/
IT/
Finance &procurement/ Sustainability
Legal affairs
digitalization accounting
qualityMasahiko
Goto

●

●

●

●

●

Munetoshi
Goto

●

●

●

●

●

Shinichiro
Tomita●●●●Tetsuhisa
Kaneko●●●●Tomoyuki
Ota

●

●

●

●

TakashiTsuchiya●

Masaki
Yoshida●●Takashi
Omote

●

●

Yukihiro
Otsu

●

●

Masahiro
SuginoOutsideIndependent●●

Takahiro
Iwase
OutsideIndependent●●

Mitsuhiko
Wakayama
Shoji Inoue
OutsideIndependent

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Koji
Nishikawa
OutsideIndependent
Ayumi
UjiharaOutsideIndependent●●- 15 -

Agenda Item No. 4: Payment of Bonus to Directors
Bonus to Directors of the Corporation is, as with the basic policy for profit distributions, linked to consolidated
business result.
At end of this period, the Corporation has 15 Directors. In accordance with above policy, we would like to pay
Directors’ bonuses to 9 Directors in the amount of 60 million yen considering performance during this period. Thisis with the exception of 6 Directors who are Audit & Supervisory Committee Members and Outside Directors.
An outline of the content of decision-making policy on individual compensation for Directors is described on page
26 of “BUSINESS REPORT”. The Corporation deems that the content of this proposal is appropriate pursuant tosuch policy.
The Audit & Supervisory Committee discussed this proposal and concluded that there are no special matters thatshould be stated at the General Meeting of Shareholders in accordance with the provisions of the Companies Act.

- 16 -

BUSINESS REPORT(From April 1, 2022 to March 31, 2023)
1. Matters on the Current Status of Makita(1) Progress and Results of Operations
Looking at the international economic situation during the year ended March 31, 2023, concerns over a global
economic downturn have heightened against the backdrop of factors including high inflation, monetary tightening invarious countries and the energy crisis associated with the prolongation of the war in Ukraine.
In this situation, with respect to development, Makita focused on expanding its lineup of cordless products including
power tools and outdoor power equipment in the “40Vmax Lithium-ion Battery” series, which offers high power,
long life and high durability.
With respect to production, we worked on building a production system and strengthening management functions to
flexibly address changes in the demand environment and geopolitical risks, and improve the efficiency of theGroupas a whole.
We also work to increase the level of the community-based and customer-oriented service framework in order tofurther strengthen trusting relationships with customers around the world. We strive to deepen and develop themarket centered on cordless products.
Although sales were sluggish in Europe and North America, Makita's consolidated financial results for the fiscal year
set a new record high, increased 3.4% year on year to 764,702 million yen due to strong sales in Japan and Oceania,
as well as the impact of the yen’s depreciation and strong local currencies.
Revenue by region are as follows:
In Japan, although stay-at-home demand subsided, we mainly secured sales of cordless outdoor power equipment andthe new XGT series of products, resulting in a 4.2% increase year on year to 122,978 million yen.
In Europe, as sales decreased by 1.0% year on year to 348,994 million yen due to deteriorating business confidence
caused by high inflation, monetary tightening, and uncertainty concerning energy supply.
In North America, while sales decreased as stay-at-home demand subsided and monetary tightening created warinessof a recession, revenue increased 6.1% year on year to 119,064 million yen due to the depreciation of the yen against
local currencies.
In Asia, although there was market turmoil around China’s zero COVID-19 policy and impacts from monetary
tightening in various countries, sales were strong in Taiwan and other countries and the depreciation of the yen
against local currencies contributed to revenue increasing by 8.3% year-on-year to 53,276 million yen.
In Central and South America, while sales decreased due to accelerating inflation and increased uncertainty
concerning the future in each country, revenue increased 13.1% year on year to 47,256 million yen due to thedepreciation of the yen against local currencies.
In Oceania, despite negative economic factors such as surging construction material prices and monetary tightening,strong sales of new products and outdoor power equipment resulted in a 13.6% year on year increase to 58,593
million yen.
In the Middle East and Africa, despite continuing unstable political and economic conditions, revenue increased 4.2%
year on year to 14,541 million yen due to the depreciation of the yen against local currencies.

Overall, overseas revenue accounted for 83.9% of total revenue.
In terms of profit, operating profit decreased by 69.2% year on year to 28,246 million yen (operating profit ratio3.7%) due to a worsening cost ratio as a result of the impact of foreign exchange rates and soaring raw material prices,along with an increase in selling, general, administrative and others expense. Profit before income taxes decreased by
74.2% year on year to 23,887 million yen (profit before income taxes ratio: 3.1%), and profit attributable to ownersof the parent decreased by 81.9% to 11,705 million yen (ratio of profit attributable to owners of the parent: 1.5%).

- 17 -

(Initiatives toward carbon neutrality)
The impact of climate change on society, such as frequent wind and flood disasters, is becoming more serious, andMakita is playing an increasingly important role in realizing a decarbonized society. We have identified contributing
to a decarbonized society as a material issue that should be prioritized and are stepping up our efforts. Therefore,
Makita is currently working on the realization of a decarbonized society by focusing on cordless outdoor power
equipment that does not emit exhaust gases during use as the next pillar of our future business in addition to power
tools. In addition, with the goal of reducing our greenhouse gas (GHG) emissions, we have set targets for reducing
GHG emissions from our business activities (Scope 1 and 2) by 50% by FY2030 from the FY2020 level and to net
zero by FY2040, and reducing GHG emissions from the entire supply chain (Scope 3) to net zero by FY2050. During
the fiscal year ended March 2023, solar panels were installed at the Okinawa Branch in Japan and at multiple
overseas locations, including the Thailand Plant, Austria, and Taiwan, and we promoted the use of renewable energy.
We will continue to work on the use of renewable energy and energy conservation in our business activities toachieve GHG emission reduction targets.

(Our website)
Information about Sustainability

Disclosure based on the recommendations of TCFD

(2) Management Challenges

While the prospect for the global economy will continue to be uncertain, Makita believes that demand for tools,
which contribute to the solution of social problems, such as the labor shortage and environmental problem
including frequent natural disasters and global warming, help to achieve a high level of work efficiency and arefriendly to people and the global environment, will increase further in both developed countries and emerging
countries.
Under these circumstances, Makita is strengthening its R&D and product development capabilities, mainly charge anddischarge technologies of batteries and motors, to take the initiative in expanding the market for cordless products. In
addition, next to power tools, Makita will work to develop and market products, mainly cordless outdoor power
equipment and cleaning products, as the mainstay of future business. Makita is working to strengthen a multipolar
production and procurement system that is not overly dependent on any specific country, region, or supplier.
Further, Makita is striving to raise its brand power by promoting the establishment of a sales and after-sales service
network to offer community-based and fine-tuned responses to the needs of customers around the world.
By taking these actions, Makita will strive to contribute to the realization of a sustainable society, and maintain asolid presence in the industry as a global supplier of a comprehensive range of tools for creating comfortable homes
and living environments.
In closing, we would like to thank you for your ongoing support and continuing assistance.
(3) Capital Expenditures
During this period, Makita allocated 39,088 million yen for its capital expenditures. These funds used by the
Corporation amounted to 10,764 million yen. This reflected mainly capital expenditures for buildings and equipment
for logistics center in Okayama Prefecture. These funds also used by the subsidiaries amounted to 28,324 million yen.
This reflected mainly capital expenditures for buildings at the Thailand Plant and Finland sales subsidiary.
(4) Principal Lenders
LenderBorrowing amountMUFG Bank, Ltd.

87,009 million yen

Sumitomo Mitsui Banking Corporation

63,487 million yen- 18 -

(5) Changes in Financial Position and Results of Operations
Description

108th period(ended March 31,
2020)

109th period(ended March 31,
2021)

110th period(ended March 31,
2022)

111th period(ended March 31,
2023)

Revenue492,617608,331739,260
764,702(Millions of Yen)
Operating profit
64,046
88,46491,72828,246(Millions of Yen)
Profit before
income taxes
66,00887,19992,48323,887(Millions of Yen)
Profit attributableto owners of the47,73162,01864,77011,705parent (Millions ofYen)Profit attributableto owners of the
175.80228.41238.54
43.11
parent per share(Basic) (Yen)
Total assets
674,564
812,878
1,007,497
1,099,351(Millions of Yen)
Equity attributableto owners of the571,275
657,855
746,344769,247parent (Millions of
Yen)
Ratio of profit
attributable toowners of the
8.3
10.1
9.2
1.5
parent to total
equity attributableto owners of theparent (ROE) (%)
Notes: 1. Changes in Financial Position and Results of Operations are stated under the terms of IFRS.
2. Profit attributable to owners of the parent per share (Basic) is calculated based on the average number ofoutstanding shares of common stock during the period.
3. Ratio of profit attributable to owners of the parent to total equity attributable to owners of the parent(ROE) = Profit attributable to owners of the parent / [(Equity attributable to owners of the parent at the
beginning of the period + Equity attributable to owners of the parent at the end of the period) / 2]
4. Amounts of less than 1 million yen have been rounded.

- 19 -

(6) Significant Subsidiaries

Proportion of
Ownership andVoting interest(%)

Capital(Thousands)

Company Name

Principal Business

Makita U.S.A. Inc.

USD

161,400

100.0

Sales of power tools

Makita (U.K.) Ltd.

GBP

158,923

100.0

Sales of power tools

Makita Werkzeug GmbH (Germany)

EUR

7,669

100.0*

Sales of power tools

Makita France SAS

EUR

12,436

55.0*

Sales of power tools

Makita Oy (Finland)

EUR

100

100.0*

Sales of power tools

Makita LLC (Russia)

RUB

83,207100.0*

Sales of power tools

Makita (China) Co., Ltd.

USD

80,000100.0

Production and sales of power tools

Makita (Kunshan) Co., Ltd.

USD

25,000100.0

Production of power tools

Makita (Australia) Pty. Ltd.

AUD

13,000

100.0

Sales of power tools

SC Makita EU S.R.L. (Romania)

RON

975,942100.0

Production of power tools

Note: * indicates that the Proportion of Ownership and Voting interest include the shares owned by the subsidiaries.
(7) Principal Operations
Makita is primarily involved in the production and sales of power tools such as angle grinders, impact drivers, rotary
hammer and circular saws, outdoor power equipment such as grass trimmers and hedge trimmers, pneumatic tools
such as air nailers, and household tools such as cordless cleaners.
(8) Principal Sales Offices and Plants
1. The Corporation
Name

Location

Head office

Anjo (Aichi)

Sales offices

Tokyo, Nagoya, Osaka

Plant

Okazaki (Aichi)

2. Subsidiaries
Name

Location

For Sales
Makita U.S.A. Inc.
Makita (U.K.) Ltd.
Makita Werkzeug GmbH
Makita France SAS
Makita Oy
Makita LLC
Makita (Australia) Pty. Ltd.

Los Angeles (United States)
London (United Kingdom)
Ratingen (Germany)
Bussy Saint-Georges (France)
Helsinki (Finland)
Moscow (Russia)
Sydney (Australia)

For Production and Sales
Makita (China) Co., Ltd.

Kunshan, Jiangsu (China)

For Production
Makita (Kunshan) Co., Ltd.
SC Makita EU S.R.L.

Kunshan, Jiangsu (China)
Branesti (Romania)- 20 -

(8) Employees
1. Employees of Makita
Number of Employees

Increase / Decrease

18,804

1,429 (Decrease)

2. Employees of the Corporation
Number of Employees

Increase / Decrease

Average Age

Average Years of Service

3,384

139 (Increase)

39.8

16.4

3. Promoting women employees of the Corporation
The period ended March 31, 2022
Ratio of the women managers
0.7% (2 persons)Notes: Makita as a whole has more than 200 women in management positions.

The period ended March 31, 2023
1.0% (3 persons)(Initiatives of promotion of women employees in the Corporation)
We have committed to the following initiatives at our general business owner action plan based on the Act to Promote
Women’s Participation.
[Medium-to Long-term Initiatives for the Future]
・Encourage women to apply for examinations for promotion to the supervisory level, a stepping stone to the managerial
level
・Encourage women to attend mid-career planning seminars
・Actively recruit women for new graduate and mid-career positions
In addition, during this term, we made positive efforts to improve the system related to the ease of working, including
holding discussions between workers and management regarding the extension of the period during which a childcare
reduced-working-hours system rearing can be used and the introduction of an annual leave system with units of an hour.
We will continue to reinforce these initiatives and promote the active participation of women.

- 21 -

2. Shareholding Status of the Corporation(1) Total Number of Shares Authorized to be Issued by the Corporation: 992,000,000 shares(2) Total Number of Outstanding Shares:

280,017,520 shares(including treasury shares of 8,475,674 shares)(3) Number of Shareholders:

21,924(4) Major Shareholders:Number of shares held(Thousands of Shares)

Name of Shareholders

Percentage(%)

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

45,605

16.79

Custody Bank of Japan, Ltd. (Trust account)

15,058

5.54

Maruwa, Ltd.

8,638

3.18

MUFG Bank, Ltd.

8,426

3.10

BNYM AS AGT/CLTS NON TREATY JASDEC

6,817

2.51

Makita Cooperation Companies' Investment Association

6,319

2.32

Sumitomo Mitsui Banking Corporation

5,800

2.13

Nippon Life Insurance Company

5,353

1.97

National Mutual Insurance Federation ofAgricultural Cooperatives

5,102

1.87

The Bank of New York Mellon as Depositary Bank for DR Holders

4,643

1.70

Note: The Percentage is calculated based on the total number of outstanding shares (excluding treasury shares) at the endof this period.
(5) Shares granted to Directors of the Corporation in consideration of the performance of duties in this period:
Classification
Number of shares
Number of recipients
Directors(excluding Directors who are Audit & Supervisory
9,720 shares
9
Committee Members and Outside Directors)

Reference

Number of entities in which the Corporation is a shareholder, other than those held purely for trading
purposes, and amount recorded on the balance sheet- 22 -

3. Directors of the Corporation(1) Directors
1. Directors
Title

Name

Chairman*

Masahiko Goto

President*

Munetoshi Goto

Director
Corporate Officer
Director
Corporate Officer
Director
Corporate Officer
Director
Corporate Officer
Director
Corporate Officer
Director
Corporate Officer
Director
Corporate Officer

Position at the Corporation and Important Concurrent Posts
Outside Director of HOSHIZAKI CORPORATION

Shinichiro Tomita

General Manager of Purchasing Headquarters

Tetsuhisa Kaneko

General Manager of Research and Development Headquarters

Tomoyuki Ota

General Manager of Quality Headquarters

Takashi Tsuchiya

General Manager of Domestic Sales Headquarters

Masaki Yoshida

General Manager of Production Headquarters

Takashi Omote

General Manager of International Sales Headquarters

Yukihiro Otsu

General Manager of Administration Headquarters

Director

Masahiro Sugino

Advisor of LIXIL Corporation
Outside Director of KITAKEI CO., LTD.

Director

Takahiro Iwase

Outside Audit & Supervisory Board Member of DMG MORI CO., LTD.

Director(Standing Audit &Mitsuhiko Wakayama
Supervisory Committee
Member)Director(Standing Audit &Akira Kodama
Supervisory Committee
Member)Director
Attorney at Law (Inoue Shoji Law Firm)(Audit & Supervisory
Shoji Inoue
Outside Director of Okuma Corporation
Committee Member)
Director
Representative of Nishikawa Koji Accounting Firm
(Audit & Supervisory
Koji Nishikawa
Representative Partner of Seimei Audit Corporation
Committee Member)
The Nomination and Compensation Committee Members:
Mr. Masahiro Sugino**, Mr. Masahiko Goto, Mr. Munetoshi Goto, Mr. Takahiro Iwase, Mr. Akira Kodama(** denotes Chairman of the Committee.)
Notes: 1. * denotes Representative Director.
2. In order to promote swift execution of group strategies and strengthen the business affairs of Makita, theCorporation has introduced the Corporate Officer System. Corporate officers consist of 19 members including
Directors.
3. Mr. Masahiro Sugino, Mr. Takahiro Iwase, Mr. Akira Kodama, Mr. Shoji Inoue, and Mr. Koji Nishikawa are
Outside Directors.
4. In order to enhance the effectiveness of the audit and supervisory function, 2 Standing Audit & Supervisory
Committee Members are selected.
5. Mr. Akira Kodama, a Director (Standing Audit & Supervisory Committee Member), has a substantial amount ofexpertise in finance and accounting, through experience working at financial institution for many years.
6. Mr. Koji Nishikawa, a Director (Audit & Supervisory Committee Member), is a certified public accountant, andhas a substantial amount of expertise in finance and accounting.
7. The Corporation has designated Mr. Masahiro Sugino and Mr. Takahiro Iwase each a Director, and Mr. Akira
Kodama, Mr. Shoji Inoue, and Mr. Koji Nishikawa each an Audit & Supervisory Committee Member, as the“Independent Director(s)” as required by the regulations of the Tokyo Stock Exchange and the Nagoya Stock
Exchange and made required notification therefore to these stock exchanges.
8. The Corporation has entered into a directors and officers liability insurance contract stipulated in Article 430-3,
Paragraph 1 of the Companies Act with all Directorsand Corporate Officers as well as officers of thesubsidiaries (with regard to overseas subsidiaries, this is limited to officers temporarily transferred from the
Corporation and officers concurrently serving at the Corporation and overseas subsidiaries). The premiums arepaid by the Corporation, including riders. The said insurance contract covers damages caused as a result of the- 23 -

insured executives, etc. assuming responsibilities regarding the execution of their duties or receiving claims
pertaining to the pursuit of such responsibilities. Provided, however, that there are certain exemptions; forexample, the insurance contract does not cover damages caused as a result of any conduct committed with his or
her knowledge that the conduct is in violation of laws and regulations.
2. Outline of Liability Limitation Agreement
With respect to liabilities set forth in Article 423, Paragraph 1 of the Companies Act, the Corporation has enteredinto a liability limitation agreement with each of the Directors who are Audit & Supervisory Committee Members
and each of the Outside Directors which limits the maximum amount of their liabilities to the total amount provided
for in each of the items of Article 425, Paragraph 1 of the Companies Act.
(2) Total Amounts of Compensation and Bonus to Directors and Audit & Supervisory Board Members
Total amounts of each type of Compensation and Number of payment recipients
Classification

Directors(Excluding
Audit &
Supervisory
Committee
Members)
Directors(Audit &Supervisory
Committee
Members)
Total

Total amountsofCompensation(Millions of
Yen)

Base
Compensation(Millions of
Yen)

Compensation linked toconsolidated business result

Number of
payment
recipients

Bonuses(Millions of Yen)

Nonpecuniary Compensation
Restricted
SharesCompensation(Millions of Yen)

Number of
payment
recipients

Number of
payment
recipients

199

105

11

60

9

34

9

41

41

4

-

-

-

-

240

146

15

60

9

34

9

Notes: 1. The aggregate amount of base compensation includes the amount of 36 million yen paid to Outside Executives(2 Outside Directors (excluding Directors who are Audit & Supervisory Committee Members), 3 Outside
Directors (Audit & Supervisory Committee Members)).
2. Other than the above, the amount of 139 million yen was paid to 7 Directors who concurrently serve as
employees as employee salaries (including bonuses).
3. The Corporation terminated the retirement allowance plan for Directors and Audit & Supervisory Board
Members as of the conclusion of the Ordinary General Meeting of Shareholders held on June 29, 2006. At such
Ordinary General Meeting of Shareholders, it was resolved that retirement allowance for Directors and Audit &Supervisory Board Members were to be paid at the time of each retirement, and it was further resolved that thedetermination of the specific amount, payment method and other related matters were left to resolutions of theBoard of Directors with respect to the Directors. However, at the meeting of the Board of Directors held on
January 29, 2021, it was resolved that the determination of the amount, payment method and other related
matters of the retirement allowance for Directors be delegated to the Nomination and Compensation Committee
at the time of the actual retirement of the eligible Directors.
The amount recorded in the retirement allowance for Directors as of March 31, 2023 is 300 million yen, which
will be paid to 1 Director.
4. At the Ordinary General Meeting of Shareholders held on June 25, 2021, it was resolved that the maximum
amounts of annual compensation for Directors (excluding Directors who are Audit & Supervisory Committee
Members) was 240 million yen (excluding the bonus and the amounts paid to Directors who concurrently serve
as employees as employee salaries), and that the maximum amounts of annual compensation for Outside
Directors was 35 million yen. There were 11 Directors (excluding Directors who are Audit & Supervisory
Committee Members, including 2 Outside Directors) after such Meeting. At such Meeting, it also was resolvedthat the maximum amounts of annual compensation for Directors who are Audit & Supervisory Committee
Members was 60 million yen. There were 4 Directors who are Audit & Supervisory Committee Members.
5. The Corporation pays bonuses to Directors (excluding Directors who are Audit & Supervisory Committee
Members and Outside Directors) as compensation linked to consolidated business result, etc.
For the purpose of management of the Corporation in a manner favorable to shareholders, just as in the case ofdividend payment, bonuses are based on the profit attributable to owners of the parent per share (Basic) after
certain adjustments reflecting special circumstances. After consulting with and receiving an advice from theNomination and Compensation Committee, the Board of Directors determines the total amount of bonuses- 24 -

based on a certain formula and submits the total amount of bonuses to the General Meeting of Shareholders.
The allocation of bonuses to each Director is determined by the Nomination and Compensation Committee
under the authority delegated by a resolution of the Board of Directors, based on performance, positions andother factors. The profit attributable to owners of the parent per share (Basic) after certain adjustments
excluding special circumstances in this period is 57.31 yen.
6. The Corporation grants restricted shares compensation to Directors (excluding Directors who are Audit &Supervisory Committee Members and Outside Directors) as nonpecuniary compensation. The Corporation
passed a resolution introducing compensation system by the allotment of restricted shares on the Ordinary
General Meeting of Shareholders held on June 25, 2021.
At a time, it was resolved that the maximum total annual amount of monetary compensation receivables to be
paid to Eligible Directors as compensation relating to the restricted shares was set at 100 million yen, separatelyfrom the compensation set forth in Note 4 above, and that the maximum total number of the restricted shares tobe allotted to Eligible Directors in each fiscal year was 100,000 shares. The number of Directors subject to theresolution of this General Meeting of Shareholders is 9 (excluding Directors who are Audit & Supervisory
Committee Members and Outside Directors).
The details of such restricted shares compensation are as described in “(4) Restricted Shares Compensation”(page 27).
7. The above restricted shares compensation represents the expenses recorded for this period.

- 25 -

(3) Decision-Making Policy on Individual Compensation for Directors and the Delegation of Decision
1. Matters concerning Decision-Making Policy on Individual Compensation for Directors (excluding Directors who
are Audit & Supervisory Committee Members)
After consulting with and receiving an advice from the Nomination and Compensation Committee, at the meetingof the Board of Directors, the amendment of decision-making policy on individual compensation for Directors(excluding Directors who are Audit & Supervisory Committee Members; the same shall apply throughout 1. and2.) was resolved. The compensation for Directors consists of monthly compensation, bonuses and restricted sharescompensation, and for the purpose of provision of sound incentives for improving the corporate value over the
medium-to-long term, the Corporation appropriately determines the proportion of the monthly compensation,bonuses and restricted shares compensation.
The compensation for individual Directors for this period (excluding bonuses) is based on the decision-making
policy resolved by the Board of Directors. The Board of Directors has judged that the compensation for individual
Directors has been determined through the procedures specified in the relevant policy, and the content of suchcompensation is in line with such policy.
2. Matters concerning Delegation of Decision regarding Compensation for Individual Directors
With respect to monthly compensation and bonuses, decision of the amount of individual compensation for
Directors shall be delegated to the Nomination and Compensation Committee pursuant to a resolution by the Boardof Directors. The Nomination and Compensation Committee consists of 5 members: Chairman and Representative
Director Masahiko Goto, President and Representative Director Munetoshi Goto, Outside Director Masahiro
Sugino , Outside Director Takahiro Iwase, and Outside Director (Audit & Supervisory Committee Member) Akira
Kodama. The Chairman of the Committee is Outside Director Masahiro Sugino.
The reason that the Board of Directors delegated the decision of the monthly compensation and bonuses forindividual Directors to the Nomination and Compensation Committee is to ensure the transparency, objectivity,and fairness of the procedures for decision of the compensation, by entrusting the deliberation and decision to theNomination and Compensation Committee, whose majority and chairman are an Outside Director independent of
the management.
The amount of compensation for individual Directors regarding bonuses in this period is scheduled to be
determined by the Nomination and Compensation Committee under the authority delegated by the Board of
Directors, through deliberation in a diversified manner, including considering the consistency with thedecision-making policy. The Board of Directors has respected such determination and judged that it is in line withthe decision-making policy on individual compensation for Directors.
3. Compensation to Directors who are Audit & Supervisory Committee Members
Full amount of the compensation to Directors who are Audit & Supervisory Committee Members is fixed so thatthe independence of the Audit & Supervisory Committee Members from the management can be secured and thespecific amount for each Director who is Audit & Supervisory Committee Member is decided through discussions
among Directors who are Audit & Supervisory Committee Members.

- 26 -

(4) Restricted Shares Compensation
1. Description of Restricted Shares Compensation
Restricted shares compensation is introduced to Directors who are Audit & Supervisory Committee Members andDirectors (excluding Outside Directors) (hereinafter collectively referred to as the “Eligible Directors”) in order toallow Eligible Directors to share the risks and benefits of stock price fluctuations with shareholders to a greater
extent and further enhance their motivation to contribute to improving the stock price and the corporate value of
the Corporation.
The allotment of restricted shares to each Eligible Director is decided based on position, etc. at the Board of
Directors after consulting with and receiving an advice from the Nomination and Compensation Committee.
The restricted shares are granted at a certain time each year.
2. Details regarding transfer restrictions
Eligible Directors to whom the restricted shares have been allotted shall not transfer such allotted shares(hereinafter referred to as the “Allotted Shares”) to third parties, establish a pledge or a security interest on theshares, use them as an inter vivos gift, bequest them to another party, or otherwise dispose of the Allotted Shares(hereinafter referred to as “Transfer Restrictions”) for a period of 50 years (hereinafter referred to as the “Transfer
Restrictions Period”).
3. Gratis acquisition of the restricted shares
The Corporation shall acquire the restricted shares without compensation if an Eligible Director who has beenallotted the Allotted Shares retires as a Director of the Corporation anytime between the initial day of the Transfer
Restrictions Period until the day preceding the first subsequent Ordinary General Meeting of Shareholders, except
when there are reasons deemed legitimate by the Board of Directors.
In addition, the Corporation shall rightly acquire any of the Allotted Shares without compensation for which theTransfer Restrictions have not been removed in accordance with the reasons set forth in “4.” below at the
expiration of the Transfer Restrictions Period in “2.” above.
4. Removal of Transfer Restrictions
The Corporation will remove Transfer Restrictions on all the Allotted Shares upon expiration of the Transfer
Restrictions Period if an Eligible Director who has been allotted the restricted shares continues to hold the positionof a Director of the Corporation from the initial day of the Transfer Restrictions Period until the day of the first
subsequent Ordinary General Meeting of Shareholders.
However, if said Eligible Director has continued to hold the position of a Director of the Corporation upon
expiration of the Transfer Restrictions Period, the Transfer Restrictions will not be removed on all the Allotted
Shares held by said Eligible Transfer upon said expiration.
If said Eligible Director retires as a Director of the Corporation before the expiration of the Transfer Restrictions
Period for reasons deemed legitimate by the Board of Directors, the number of the Allotted Shares for which theTransfer Restrictions will be removed and the timing of the removal of Transfer Restrictions shall be reasonably
adjusted as needed.
5. Delivered Restricted Shares Compensation Status
This is as described in “2.(5) Shares granted to Directors of the Corporation in consideration of the performance of
duties in this period” (page 22).

- 27 -

(5) Outside Directors
1. Relation between important organization of concurrent post and the Corporation
There is no special interest between important organization of concurrent post and the Corporation.
2. Major activities during this period
Classification

Name

Attendance rate of the Board of
Directors meetings(total attended/ total held)

Attendance rate of the Audit &Supervisory Committee
meetings(total attended/ total held)

Director

Masahiro Sugino

100%(12/12)-

Director

Takahiro Iwase100%(12/12)-- 28 -

Major activities
He has a thorough experience ofcorporate management, and broad
insight because he has
participated in the management of
LIXIL Group Companies formany years, and expressed his
opinions from the perspective at
the Board of Directors of the
Corporation.
So, he contributed todecision-making from various
viewpoints at the Board of
Directors and enhancement of thesupervisory function for the
management, and performed his
appropriate role as Outside
Director.
As chairman of the Nomination
and Compensation Committee, hecontributes to ensuringtransparency, objectivity andfairness in the determination ofcandidates and compensation for
Directors (excluding Directors
who are Audit & Supervisory
Committee members).
He has a thorough experience ofcorporate management and broad
insight because he has
participated in the management ofcore companies of the Toyota
Group for many years, andexpressed his opinions from theperspective at the Board of
Directors of the Corporation.
So, he contributed todecision-making from various
viewpoints at the Board of
Directors and enhancement of thesupervisory function for the
management, and performed his
appropriate role as Outside
Director.
As Member of the Nomination
and Compensation Committee, hecontributes to ensuringtransparency, objectivity andfairness in the determination ofcompensation for Directors(excluding Directors who are
Audit & Supervisory Committee
members).

Director(Audit&Supervisory
Committee
Member)Akira Kodama

100%(12/12)100%(14/14)

Director(Audit&Supervisory
Committee
Member)Shoji Inoue100%(12/12)100%(14/14)

Director(Audit&Supervisory
Committee
Member)Koji Nishikawa

100%(12/12)100%(14/14)- 29 -He has many years of experienceat financial institutions andexpertise in accounting and so on,
and expressed his opinions fromthe perspective at the Board of
Directors and the Audit &Supervisory Committee.
So, he contributed todecision-making from various
viewpoints at the Board of
Directors and enhancement of thesupervisory function for the
management, and performed his
appropriate role as Outside
Director who is Standing Audit &Supervisory Committee Member.
As Member of the Nomination
and Compensation Committee, hecontributes to ensuringtransparency, objectivity andfairness in the determination ofcandidates and compensation for
Directors (excluding Directors
who are Audit & Supervisory
Committee members).
He has extensive knowledge andexpertise gained through hispractice as attorney at law, andexpressed his opinions from theperspective at the Board of
Directors and the Audit &Supervisory Committee.
So, he contributed todecision-making from various
viewpoints at the Board of
Directors and enhancement of theaudit and supervisory function forthe management, and performed
his appropriate role as Outside
Director who is Audit &Supervisory Committee Member.
He has extensive knowledge andexpertise in corporate accounting
audits as a certified public
accountant and expressed his
opinions from the perspective at
the Board of Directors and the
Audit & Supervisory Committee.
So, he contributed todecision-making from various
viewpoints at the Board of
Directors and enhancement of theaudit and supervisory function forthe management, and performed
his appropriate role as Outside
Director who is Audit &Supervisory Committee Member.

4. Accounting Auditor(1) Name of Accounting Auditor: KPMG AZSA LLC(2) Compensation and Other Amounts
Amount of payment(Millions of Yen)
1. Compensation and other amounts to the Accounting Auditor for this period130

2. Total amount of cash and other financial benefits payable by the Corporationand its subsidiaries to the Accounting Auditor

130

Notes: 1. As the audit agreement between the Corporation and its Accounting Auditors does not differentiatecompensation for audit under the Companies Act from the one for audit under Financial Instruments andExchange Law, the amount shown in 1. above represents total compensation and other amounts for bothaudits.
2. The Audit & Supervisory Committee agreed to compensation to Accounting Auditors as stipulated in
Article 399, Paragraph 1 of the Companies Act at the Audit & Supervisory Committee held on May 31,
2022, after examination of their performance of accounting audit services and basis for the calculation of
the estimated amount of their compensation in the prior years, which examination was made in line withthe “Practical Guidelines for Cooperation with Accounting Auditors” released by the Japan Audit &Supervisory Board Members Association.
3. KPMG AZSA LLC is a member firm in Japan of KPMG International. Makita LLC, a subsidiary of the
Corporation, has been audited by audit corporation other than the member of the firm of KPMGInternational, but other principal subsidiaries of the Corporation are conducted by member firms of KPMGInternational.
(3) Contents of Non-Audit Services
None.
(4) Decision-Making Policy on Dismissal or Non-Reappointment of Accounting Auditor
If the accounting auditor falls under any of the events prescribed in each of the items of Article 340, Paragraph 1 of theCompanies Act, the Audit & Supervisory Committee shall dismiss such accounting auditor with the consent of all the
Audit & Supervisory Committee Members. In the case of such dismissal, the Audit & Supervisory Committee Members
selected by the Audit & Supervisory Committee shall report such dismissal and the reasons to the first General Meetingof Shareholders to be held after such dismissal.
In addition, if it is identified as difficult for the accounting auditor to properly conduct audits as a result of any reason
that may harm the independence of the accounting auditor, the Audit & Supervisory Committee will decide the detailsof the agenda concerning the non-reappointment of such accounting auditor that is to be submitted to a General Meetingof Shareholders, and pursuant to such decision, the Board of Directors will submit the agenda concerning the
non-reappointment of such accounting auditor to the General Meeting of Shareholders.

- 30 -

5. Policy on Determination of Dividends from Surplus, etc.
The Corporation’s basic profit distribution policy has been to pay a minimum annual dividend of 10 yen per share and aconsolidated dividend payout ratio of 30% or more (however, if there are special factors, the dividend amount will be
determined based on adjusted basic earnings per share after adding or subtracting such factors). However, from theviewpoint of strengthening shareholder returns, we have reviewed this policy and decided to set the minimum annual
dividend at 20 yen and the total return ratio (*) at 35% or more (taking special factors into consideration, if any), startingfrom the fiscal year ended March 31, 2023. Of these, we will consider purchasing of treasury shares in view of stock pricelevel and free cash flow and so on, in order to increase shareholder returns through the implementation of a flexible capital
policy and improvement of capital efficiency.

* Total return ratio =Total amount of purchased
Average number oftreasury shares during the year
shares outstanding
Profit attributable to owners of the parent per share (Excluding special factors)

Cash dividend per share +×100

The Corporation intend to use retained earnings to invest in environmental initiatives, which will become increasingly
important, and to expand our business globally, while maintaining a financial structure that can withstand any changes inthe business environment.
Despite the fact that the Articles of Incorporation stipulated that, unless otherwise provided for in laws and regulations, theBoard of Directors may decide the matters provided for in each item of Article 459, Paragraph 1 of the Companies Act,
including dividends from surplus, year-end dividends will continue to be determined at the General Meeting of

Shareholders.

- 31 -

CONSOLIDATED BALANCE SHEET(As of March 31, 2023)(Millions of Yen)
(Assets)
Current assets(Liabilities)
753,439

Current liabilities

291,593

Cash and cash equivalents

162,720

Trade payables and other payables

41,767

Trade receivables and other receivables

110,884

Borrowings

186,390

Inventories

453,752

Other financial liabilities

7,504

Other financial assets

6,970

Income taxes payable

3,757

Other current assets

19,113

Provisions

4,623

345,912

Other current liabilities

47,552

Non-current assets

Non-current liabilities

32,059Property, plant and equipment

265,638

Goodwill and intangible assets

10,427Retirement benefit liabilities

2,830

Other financial assets

36,607

Other financial liabilities

14,835Retirement benefit assets

12,157

Provisions

1,618

Deferred tax assets

17,901

Deferred tax liabilities

12,576

Other non-current assets

3,182

Other non-current liabilities
Total liabilities

200
323,652(Equity)
Share capital

23,805Additional paid-in capital

45,606

Retained earnings

629,314

Treasury shares(11,528)

Other components of equity
Total equity attributable to owners of theparentNon-controlling interest
Total equity
Total assets
1,099,351
Note: Amounts less than 1 million yen have been rounded.

- 32 -

Total liabilities and equity

82,050769,2476,452
775,699
1,099,351

CONSOLIDATED STATEMENT OF INCOME(From April 1, 2022 to March 31, 2023)(Millions of Yen)

REVENUE

764,702

Cost of sales(575,954)

GROSS PROFIT

188,748

Selling, general, administrative and others, net(160,502)

OPERATING PROFIT

28,246

Financial income

3,316

Financial expenses(7,675)PROFIT BEFORE INCOME TAXES

23,887

Income tax expenses(12,316)

PROFIT

11,571

Profit attributable to:
Owners of the parent

11,705

Non-controlling interests(134)

Note: Amounts less than 1 million yen have been rounded.

- 33 -

BALANCE SHEET(As of March 31, 2023)(Millions of Yen)
(Assets)
Current assets(Liabilities)
234,863

Cash and time deposits

10,741

Trade notes receivable

155

Current liabilities

185,753

Accounts payable

31,707

Other payable

3,882
6,811

Trade accounts receivable

123,319

Accrued expenses

Finished goods and merchandise

41,609Allowance for directors’ bonuses

60

Work-in-process

1,819

Allowance for product warranties

641

Raw materials and supplies

11,102

Short term borrowings

Short-term loans receivable

20,401

Other

4,652

Income taxes refund receivable

2,012Long term liabilities

1,902

Other

23,724Retirement and termination allowance

Allowance for doubtful accounts(19)

Retirement allowance for directors and audit &supervisory board members

138,000

240
300

Fixed assets

386,794

Long-term deposits payable

Tangible fixed assets

93,757
51,632
3,748
10,445
156
7,265

Other

Total liabilities(Net assets)
Shareholders' equity
Share capital
Capital surplus

187,655

19,121

Additional paid-in capital

47,525Construction in progress

1,390

Other capital surplus

197

Intangible fixed assets

2,530

Retained earnings

364,948

Software1,366

Legal reserve

5,669

Buildings
Structures
Machinery and equipment

Vehicles and transportation equipment
Tools, furniture and fixtures
Land

Industrial property rights
Other

184
980

Other retained earnings
Reserve for dividend

178
1,184

425,348
24,20647,722359,279
750

Investment and other assets

290,507

Reserve for technical research

1,500

Investment securities

23,351

Reserve for advanced depreciation

2,340

140,574

General reserves

85,000Investment in affiliates

100,793

Retained earnings carried forward

269,689

Lease deposits

11,544

Treasury shares(11,528)

Prepaid pension cost

11,205

Valuation and translation adjustments

8,654

Deferred tax assets

3,019

Net unrealized gains on securities

8,654

Stocks of affiliates

Other

21

Total assets
621,657
Note: Amounts less than 1 million yen have been rounded.

Total net assets
Total liabilities and net assets- 34 -

434,002621,657

STATEMENT OF INCOME(From April 1, 2022 to March 31, 2023)(Millions of Yen)
Net sales

414,948

Cost of sales

366,677

Gross profit

48,271

Selling, general and administrative expenses

50,342

Operating loss

2,071

Non-operating income
Interest and dividend income

24,547

Other non-operating income

684

25,231Non-operating expense
Interest expenses

55

Foreign exchange losses

4,134

Other non-operating expense

4

Ordinary income

4,193
18,967Extraordinary gain
Gain on sales of fixed assets

12Gain on sale of investment securities

193

205

Extraordinary loss
Loss on sale and disposal of fixed assets

482

Loss on valuation of investment securities

2,247

2,729

Income before income taxes

16,443

Income taxes - current

2,390

Income taxes - deferred(1,398)Net income
Note: Amounts less than 1 million yen have been rounded.

15,451- 35 -

(English Translation of the Independent Auditor’s Report Originally Issued in the Japanese Language)
Accounting Audit Report of Accounting Auditor on Consolidated Financial Statements
Independent Auditor’s Report
May 19, 2023
The Board of Directors
Makita Corporation

KPMG AZSA LLC
Nagoya Office
Atsushi Fukui
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Ryosuke Okado
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the consolidated financial statements, which comprise the consolidated balance sheet, the consolidated
statement of income, the consolidated statement of changes in equity and the notes to consolidated financial statements ofMakita Corporation (“the Company”) and its consolidated subsidiaries (collectively referred to as “the Group"), as at March
31, 2023 and for the year from April 1, 2022 to March 31, 2023 in accordance with Article 444-4 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position and the results of operations of the Group for the period, for which the consolidated financial statements
were prepared, in accordance with the second sentence of Article 120-1 of the Ordinance of Companies Accounting thatprescribes some omissions of disclosure items required under International Financial Reporting Standards (IFRS).
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements sectionof our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of theconsolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other Information
The other information comprises the business report and its supplementary schedules. Management is responsible for the
preparation and presentation of the other information. The audit and supervisory committee are responsible for overseeing thedirectors’ performance of their duties with regard to the design, implementation and maintenance of the reporting process forthe other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form ofassurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
- 36 -

Responsibilities of Management and the Audit and Supervisory Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordancewith the second sentence of Article 120-1 of the Ordinance of Companies Accounting that prescribes some omissions of
disclosure items required under IFRS, and for such internal control as management determines is necessary to enable thepreparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue asa going concern, disclosing, as applicable, matters related to going concern in accordance with the second sentence of Article
120-1 of the Ordinance of Companies Accounting that prescribes some omissions of disclosure items required under IFRS.
The audit and supervisory committee are responsible for overseeing the directors’ performance of their duties with regard to
the design, implementation and maintenance of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group’s
internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going
concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with thesecond sentence of Article 120-1 of the Ordinance of Companies Accounting that prescribes some omissions of
disclosure items required under IFRS, the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the audit and supervisory committee regarding, among other matters, the planned scope and timing of
the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit and supervisory committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public
Accountants Act of Japan.

- 37 -

(English Translation of the Independent Auditor’s Report Originally Issued in the Japanese Language)
Accounting Audit Report of Accounting Auditor on Non-Consolidated Financial Statements
Independent Auditor’s Report
May 19, 2023
The Board of Directors
Makita Corporation

KPMG AZSA LLC
Nagoya Office
Atsushi Fukui
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Ryosuke Okado
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
OpinionWe have audited the financial statements, which comprise the balance sheet, the statement of income, the statement ofchanges in net assets and the notes to non-consolidated financial statements, and the accompanying supplementary schedules(“the financial statements and the accompanying supplementary schedules”) of Makita Corporation (“the Company”) as at
March 31, 2023 and for the year from April 1, 2022 to March 31, 2023 in accordance with Article 436-2-1 of the Companies
Act.
In our opinion, the financial statements and the accompanying supplementary schedules referred to above present fairly, in allmaterial respects, the financial position and the results of operations of the Company for the period, for which the financial
statements and the accompanying supplementary schedules were prepared, in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements and the
Accompanying Supplementary Schedules section of our report. We are independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the financial statements in Japan, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Other Information
The other information comprises the business report and its supplementary schedules. Management is responsible for the
preparation and presentation of the other information. The audit and supervisory committee are responsible for overseeing thedirectors’ performance of their duties with regard to the design, implementation and maintenance of the reporting process forthe other information.
Our opinion on the financial statements and the accompanying supplementary schedules does not cover the other information
and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements and the accompanying supplementary schedules, our responsibility is
to read the other information and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements and the accompanying supplementary schedules or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are- 38 -

required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and the Audit and Supervisory Committee for the Financial Statements and the
Accompanying Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and the accompanying
supplementary schedules in accordance with accounting principles generally accepted in Japan, and for such internal control
as management determines is necessary to enable the preparation of financial statements and the accompanying
supplementary schedules that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules, management is responsible forassessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan.
The audit and supervisory committee are responsible for overseeing the directors’ performance of their duties with regard to
the design, implementation and maintenance of the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements and the Accompanying Supplementary Schedules
Our objectives are to obtain reasonable assurance about whether the financial statements and the accompanying
supplementary schedules as a whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements and the accompanying supplementary schedules.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements and the accompanying supplementaryschedules, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Company’s
internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements and theaccompanying supplementary schedules or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.



Evaluate whether the presentation and disclosures in the financial statements and the accompanying supplementaryschedules are in accordance with accounting standards generally accepted in Japan, the overall presentation, structure
and content of the financial statements and the accompanying supplementary schedules, including the disclosures, andwhether the financial statements and the accompanying supplementary schedules represent the underlying transactions
and events in a manner that achieves fair presentation.

We communicate with the audit and supervisory committee regarding, among other matters, the planned scope and timing of
the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit and supervisory committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that may reasonably bethought to bear on our independence, and where applicable, related safeguards.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Company which is required to be disclosed pursuant to the provisions of the Certified
Public Accountants Act of Japan.

- 39 -

(English Translation of the Audit Report of Audit & Supervisory Committee Originally Issued in Japanese Language)

AUDIT REPORTThe Audit & Supervisory Committee, having audited regarding the performance of duties of Directors during the 111th period,
from April 1, 2022 to March 31, 2023, does hereby report the approach and results of their audit as follows:
1. Auditing Method Employed and Details Thereof
The Audit & Supervisory Committee received reports from Directors, employees, and other related persons on a regularbasis regarding the content of the Board of Directors’ resolutions concerning the matters set forth in Article 399-13,
Paragraph 1, Items 1 (b) and (c), of the Companies Act and the status of establishment and operation of the system(internal control system) established based on such resolutions, requested explanations and expressed opinions asnecessary, and conducted its audit in the following manner..
(i)

In conformity with Standards for audit, etc. by the Audit & Supervisory Committee established by the Audit &Supervisory Committee and in accordance with the audit policy and the duties assigned to each Audit &Supervisory Committee Member by the Audit & Supervisory Committee, each Audit& Supervisory Committee
Member has had communication with Internal Audit Division and attended important meetings , received from
Directors, employees and other related persons reports on the performance of their duties, and, when necessary,requested explanations. Each Audit & Supervisory Committee Member also inspected the important documents
and examined the status of operations and properties at the head office and the principal offices of the
Corporation. As for the subsidiaries of the Corporation, the Audit & Supervisory Committee Members, having
communication with the directors and Audit & Supervisory Board Members and other related persons of thesubsidiaries and sharing information among them, received reports from such subsidiaries as necessary.

(ii)

The Audit & Supervisory Committee Members also monitored and examined whether the Accounting Auditor
maintains its independence and conducts its audits in an appropriate manner. The Audit & Supervisory
Committee Members received reports from the Accounting Auditor on the performance of its duties and, whennecessary, requested its explanations. The Audit & Supervisory Committee Members also received notificationfrom the Accounting Auditor that it has taken steps to improve the “system for ensuring appropriate execution of
the duties of an accounting auditor” (as set forth in Items of Article 131 of the Ordinance on Corporate
Accounting) in compliance with the “Quality Control Standard for Auditing” (adopted by the BusinessAccounting Council on October 28, 2005). The Audit & Supervisory Committee Members requested
explanations on such notifications when necessary.

According to the foregoing method, the Audit & Supervisory Committee Members reviewed the business report, theaccompanying supplemental schedules and the financial statements for this period (balance sheet, statement of income,statement of changes in net assets and notes to non-consolidated financial statements) and the accompanying
supplemental schedules and the consolidated financial statements (consolidated balance sheet, consolidated statement ofincome, consolidated statement of changes in equity and notes to consolidated financial statements).
2. Results of Audit(1) Results of Audit of the Business Report and Others(i) We confirm that the business report and the accompanying supplemental schedules present fairly the status of the
Corporation in conformity with the applicable laws and regulations of Japan as well as the Articles ofIncorporation of the Corporation.
(ii) We confirm that there are no fraudulent acts or material facts that violated the applicable laws and regulations ofJapan or the Articles of Incorporation of the Corporation in the course of the performance of the duties of the
Directors.
(iii) We confirm that the substance of the resolutions by the Board of Directors regarding establishment of Internal
Control System is appropriate. We do not see anything to be pointed out on the description of the business report,
and the performance of the Directors regarding the Internal Control System.
(2) Results of Audit of the Financial Statements and the Accompanying Supplemental Schedules
We confirm that the method and the results of the audit conducted by KPMG AZSA LLC, the Accounting Auditor, areappropriate.
(3) Results of Audit of the Consolidated Financial Statements
We confirm that the method and the results of the audit conducted by KPMG AZSA LLC, the Accounting Auditor, areappropriate.
- 40 -

May 22, 2023
Audit & Supervisory Committee
Makita Corporation
Mitsuhiko Wakayama (Seal)
Standing Audit & Supervisory Committee Member
Akira Kodama (Seal)
Standing Audit & Supervisory Committee Member
Shoji Inoue (Seal)
Audit & Supervisory Committee Member
Koji Nishikawa (Seal)
Audit & Supervisory Committee Member
Notes: Mr. Akira Kodama, Mr. Shoji Inoue, Mr., Mr. Koji Nishikawa, Audit & Supervisory Committee Members, are Outside
Directors stipulated in Article 2, Item 15 and Article 331, Paragraph 6 of the Companies Act..

- 41 -

(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 inJapanese Language)

June 6, 2023

THE OTHER MATERIALS REGARDING MEASURES FOR ELECTRONIC PROVISION OF
THE 111TH ORDINARY GENERAL MEETING OF SHAREHOLDERS(Omitted Materials from the Paper Copy)
Systems and Policies of the Corporation
Consolidated Statement of Changes in Equity
Notes to Consolidated Financial Statements
Statement of Changes in Net Assets
Notes to Non-consolidated Financial Statements

MAKITA CORPORATION- 42 -

Systems and Policies of the Corporation(1) Systems to ensure that Corporation’s operation will be conducted appropriately
1. Systems to ensure that the duties of Directors and employees are executed in compliance with laws and regulations
and the Articles of Incorporation(i) The Board of Directors establishes the “Code of Ethics” and the “Guideline to the Code of Ethics for Makita”
as the principles for all Executives, and employees of Makita and each of the Directors shall keep all
Corporate Officers and employees informed of and in compliance with such ethics.
(ii) In order to ensure corporate ethics and compliance, Makita establishes the “Regulations Regarding Corporate
Ethics Help Line (Internal Reporting),” sets contact points both internally and outside Makita, and builds asystem to discover internal problems. In addition, an inquiry point shall be established on the Makita’s
website, to receive opinions and suggestions from outside Makita concerning accounting, internal controls
and auditing.
(iii) An Internal Audit Division conducts internal audit as deemed necessary.
2. Systems concerning the retention and management of information regarding the execution of duties by Directors
Information regarding the execution of duties by Directors shall be appropriately kept and managed in accordancewith internal regulations such as the Regulations of the Board of Directors and the Regulations on Corporate
Approval. Directors shall have access to such information.
3. Rules and other systems for risk management(i) Each Director has the power and responsibility to build a risk management system in Makita in the businessareas of which they are in charge, and in the case where a significant event affecting the management of
Makita arises, the Director shall report such event to the Board of Directors and the Audit & Supervisory
Committee.
(ii) Rules and guidelines on risk management regarding quality control, accident prevention, cash management
and others, shall be established as necessary and operated by each department.
4. Systems to ensure the efficient execution of Director’s duties(i) A regular meeting of the Board of Directors shall be held once a month and extraordinary meetings shall beheld whenever necessary. In addition, pursuant to management policy decided by the Board of Directors,
priority targets shall be established for each department in each period. Each Director shall execute his duty toaccomplish relevant target and the Board of Directors shall oversight the progress and performance thereof.
(ii) The Board of Directors establishes standards concerning management structure and organization, positions,divisions of functions and duties and powers, which constitutes the basis for implementing management
policy, and operates business systematically and efficiently.
(iii) The Board of Directors introduces the Corporate Officer System in order to promptly implement Makita
strategy and strengthen the operational organization, and thereby make the business operation flexible andefficient.
(iv) Makita assigns respective liaison departments to all subsidiaries within the Corporation, and makes efforts toenhance group-wide management efficiency through discussions and consultations, information exchanges
with the objective of efficiently operating subsidiaries.
5. Systems to ensure the adequacy of business operations within Makita(i) Each of all subsidiaries is under control of Directors who are in charge of such subsidiary and importantmanagement matters and matters concerning misconduct shall be reported appropriately to such Director inaccordance with the Reporting Policy. The Director who is in charge of such subsidiary, upon receipt of suchreport, shall inform the Board of Directors of the status of supervision when necessary.
(ii) To ensure the credibility of financial reporting, the Corporation establishes policies on documentation andassessment of internal controls of financial reporting of Makita and evaluates the effectiveness of said
policies.
(iii) For supervision and review of internal control systems of Makita by the Audit & Supervisory Committee, asystem shall be established for the Audit & Supervisory Committee to cooperate with the Internal Audit
Division and other related division and to receive report from Accounting Auditors.
6. Matters concerning employees posted to assist the duties of the Audit & Supervisory Committee
As employees assisting the duties of the Audit & Supervisory Committee, necessary personnel shall be posted toassist the duties of the Audit & Supervisory Committee.

- 43 -

7. Matters to ensure the independence of employees from Directors (excluding Directors who are Audit &Supervisory Committee Members), as stated in the preceding item, and the effectiveness of directions given by
Audit & Supervisory Committee to those employees(i) Employees assisting the duties of the Audit& Supervisory Committee shall not work concurrently at otherdivisions, but shall exclusively follow directions from the Audit & Supervisory Committee.
(ii) In order to ensure the independence of such employees from Directors, the consent of the Audit &Supervisory Committee is required for matters concering the appointment and change of such employees.
8. Systems in accordance with which the Directors (excluding Directors who are Audit & Supervisory Committee
Members) and employees report to the Audit & Supervisory Committee , other systems concerning reports to the
Audit & Supervisory Committee and systems to ensure that Directors and employees who make a report are nottreated unfairly because of the report(i) Directors, Corporate Officers and employees of Makita shall report to the Audit & Supervisory Committeewith respect to matters that may cause significant damage to Makita, important management matters, mattersconcerning misconduct, status of structures and operation of the internal control system, and the operation ofinternal reporting system and the results of reports received under such system.
(ii) The Corporation shall prepare a system that enables the Audit & Supervisory Committee Members selectedby the Audit & Supervisory Committee of the Corporation to request reports from Directors, Corporate
Officers and employees of Makita when necessary and allows the Audit & Supervisory Committee toexchange opinions with the Directors and Accounting Auditors of Makita.
(iii) The Corporation prohibits any unfair treatment of Directors, Corporate Officers, and employees of Makita
who make a report to the Audit & Supervisory Committee as a result of such report, and ensures all Directors,
Corporate Officers, and employees of Makita are informed to that effect.
9. Other systems to ensure that audits by the Audit & Supervisory Committee will be conducted effectively(i) In order to enhance the supervisory function of the Audit & Supervisory Committee over Accounting
Auditors, “Policies and Procedures concerning Prior Approval of Auditing and Non-Auditing Services” shallbe established. In addition, to ensure that audits by the Audit & Supervisory Committee will be conductedeffectively, audit shall be conducted in accordance with Standards for audit, etc. by the Audit & Supervisory
Committee.
(ii) Full amount of the compensation to Directors who are Audit & Supervisory Committee Members shall be
fixed so that the independence of the the Audit & Supervisory Committee can be secured.
(iii) Expenses related to executing the duties of the Audit & Supervisory Committee Members (limited to thoserelated to executing the duties of the Audit & Supervisory Committee) are securely budgeted each fiscal year
and borne by the Corporation.
10. Systems to ensure elimination of antisocial forces(i) From the viewpoint of corporate social responsibility, Makita will consistently take a resolute stance against
involvement in, and have absolutely no relationship with, the activities of antisocial forces that may threaten
the order and the security of civil society.
(ii) Makita’s policy of “no intervention by antisocial forces has been permitted” is publicly announced, bothinternally and outside the Corporation, by expressly stipulating such in the management policy/quality policy
and by displaying such on the Corporation’s website.
(iii) Ban on transactions with antisocial forces is expressly stated in the “Guidelines to the Code of Ethics for
Makita” which prescribes the standards for officer and employee conduct applicable in the execution of theirtasks. Each Director shall keep all Corporate Officers and employees informed of and in compliance withsuch prohibition.
(iv) The Corporation has been liaising closely with the police and external related organizations, including the
Public Interest Incorporated Foundation Aichi Center for Removal of Criminal Organization, and endeavors
to prevent any involvement in activities of antisocial forces, any damage caused thereby, and others.
(v) In addition to collecting information relevant to activities of antisocial forces from the police and external
related organizations, the Corporation voluntarily participates in seminars. Also, the Corporation endeavors toshare information within the Corporation and related departments of Makita.

- 44 -

(2) Implementation status of systems necessary for ensuring that the Corporation’s operations are conducted
appropriately
1. Compliance(i) The Corporation keeps all officers and employees of Makita informed and provides training on the “Code of
Ethics,” “Guidelines to the Code of Ethics for Makita,” and “Regulations Regarding Corporate Ethics Help
Line (Internal Reporting),” on a continual basis.
(ii) The Corporation conducts a questionnaire survey of all employees to raise awareness about the importance ofcompliance and have them better understand the “Code of Ethics.”
2. Risk management
The Disclosure Committee meetings are held periodically during this period, at which Representative Directors,
Directors in charge, Directors who are Standing Audit & Supervisory Committee Members, and General
Managers of Internal Audit Division and respective departments of the Corporation meet to detect and extract andexamine risks involved in the business activities of Makita.
3. Internal audits(i) The Internal Audit Division carries out internal audits of Makita, and reported their results to the Audit &Supervisory Committee and the management.
(ii) The Corporation has established a framework under which any deficiency in internal controls found during aninternal control audit is appropriately corrected or redressed in a timely manner.
4. Systems to ensure the efficient execution of Directors’ duties(ii) The Board of Directors approves annual targets set by each department and oversees their progress towardachievement.
(iii) Corporate Officers in charge of operation (19 officers as of March 31, 2023, including 6 officers overseas) are
assigned to major departments in order to operate business systematically and efficiently.
5. Duties of the Audit & Supervisory Committee Members(i) The Audit & Supervisory Committee meet Accounting Auditors and exchange information every quarter.
(ii) The Audit & Supervisory Committee have individual interviews with Directors (excluding Directors who are
Audit & Supervisory Committee Members) to exchange information.
(iii) Expenses necessary for executing the Audit & Supervisory Committee Members’ duties (limited to thoserelated to executing the duties of the Audit & Supervisory Committee) are handled promptly at the request of
Audit & Supervisory Committee Members.

- 45 -

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(From April 1, 2022 to March 31, 2023)(Millions of Yen)
Equity attributable to owners of the parent

Balance at April 1, 2022

Retainedearnings

Common stock

Additional
paid-in capital

23,80545,585640,577

Treasury stock

Other
components ofequity(11,540)

47,917

11,705

Profit for this period--

11,705

Inflation adjustments(3,197)

Dividends paid

(19,550)

Purchase of treasury
stock
Disposal of treasury
stock
Share-based paymenttransaction
Transfer from othercomponents of equity
to retained earnings
Total amounts oftransactions withownersBalance at March 31,
2023

21

30,38830,38830,38842,093

3,524

327(19,550)

(1)

(1)

0

0

13

34
221

-

-

21

(19,771)12

221(19,517)23,80545,606629,314(11,528)

82,050769,247

Total equity

Balance at April 1, 2022

6,186

752,530

Profit for this period(134)

11,571Other comprehensive
income400

30,788Comprehensive income

266

42,359327

Inflation adjustments
Purchase of treasury
stock
Disposal of treasury
stock
Share-based paymenttransaction
Transfer from othercomponents of equity
to retained earnings
Total amounts oftransactions withownersBalance at March 31,
2023

-

(221)

Non-controllinginterest

Dividends paid

746,344
11,705

Other comprehensive
incomeComprehensive income

Total

-

(19,550)
(1)
0
34
-

-

(19,517)6,452

775,699

Note: Amounts less than 1 million yen have been rounded.

- 46 -

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 Regulations on Corporate Accounting. Provided
that certain statements and notes required by IFRS are omitted in accordance with the second sentence of saidParagraph.
2. Scope of consolidation
Number of consolidated subsidiaries: 53
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.
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 otherfinancial 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 initiallymeasured at the amount of fair value added to the transaction cost directly attributable to the financial asset.
However, trade receivables 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- 47 -

value. Gain or loss of valuation arising from changes in fair value, dividends, and interest revenue arerecognized in profit or loss.

(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
at amortized 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 otherparty 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
calculated by 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 thetransaction 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 the financial 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 infair value of derivatives are recognized in profit or loss.

- 48 -

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 andcondition. 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 inthe 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 15 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 leaseterm.
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 thecorporate assets may be impaired, the recoverable amount of cash-generating unit to which the corporate assets is
attributable is estimated.
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 discountrate 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- 49 -

not exceeding the carrying amount when there was no impairment loss recognized in the asset in the past.
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 theexpenditures that are expected to be required to settle the obligation. Present value is culculated by using the discountrate before tax that reflects the time value of money and the risks inherent in the liability. Rebate of the discounted
amount arising from 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
the period in which they occur.
Remeasurements of the net defined benefit liability or asset are entirely recognized in other comprehensive
income in 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
the exchange rate as of the tansaction date.
Monetary assets and liabilities denominated in foreign currencies as of the reporting date are translated intofunctional 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
are translated by using the exchange rate as of the transaction date, and those measured at fair value are translated byusing the exchange rate as of the date of calculation of the fair value. The exchange differences arising from thetranslation or the settlement are recognized in profit or loss. However, the differences arising from the translation ofequity instruments measured at fair value whose changes are recognized in other comprehensive income arerecognized in other 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 theexchage rate changes significantly or the case that currency is the currency of a hyperinflationary economic country.
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 the foreign operation is
disposed. Financial Statements of subsidiaries in a hyperinflationary economy are conducted by translating into apresentation currency of Makita Group at the exchange of the reporting date in accordance with the hyperinflationaccounting.
- 50 -

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, 2023 under the accounting estimates and may have a significant impact on the consolidated financial statements
for the fiscal year ended March 31, 2024.
・Measurement of defined benefit obligation
The amount of defined benefit obligation recorded in the consolidated financial statements for the fiscal year ended
March 31, 2023 is 36,722 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 require 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,
2023 is 17,901 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, 2023 is453,752 million yen, which is recorded after subtracting the book value devaluation of 44,523 million yen due to a decline
in net realizable value.
Inventories are measured at the lower of either acquisition cost or 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.

- 51 -

Notes to Consolidated Balance Sheet
1.

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

1,542
193,387

million yen
million yen

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

Beginning of the period
280,017,520 shares

Increase

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 28, 2022

Common shares

16,83562

March 31, 2022

June 29, 2022

Board of Directors
held on October 28, 2022

Common shares

2,715

10

September 30, 2022

November 28, 2022

(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, 2023

Type of shares
CommonsharesDividend resource

Retained earnings(Millions of Yen)

Dividend
per share
(Yen)

2,987

11

Total amount ofdividends

Record date

Effective date

March 31, 2023

June 29, 2023

Notes to Financial Instruments
1. Matter regarding status of financial instruments
In the course of business activities, Makita is exposed to financial risks, such as foreign exchange rate risks, stock
price risks, interest rate risks, credit risks, and liquidity risks. We perform risk management activities to reduce suchfinancial 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 foreign currency bank account 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 statusappropriately.
(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.
Trade accounts receivable and trade notes receivable, which are trade receivable, are exposed to the credit risk of- 52 -

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, periodicallymonitoring 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 theguidelines 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 besettled 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, 2023 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 and other receivables, and trade 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 fairvalue.
(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 arecalculated at an exchange market price or a price presented by a financial institution as financial assets
measured at fair value through profit or loss.
Derivatives are calculated as financial assets or financial liabilites measured at fair value through profit orloss, based on such basic conditions observable at the market as exchage rate, etc.

- 53 -

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 reasonableapproximations 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
Stocks22,823
1,441
24,264
Financial assets measured at fair value throughnet profit or loss
Derivative assets
2,739
2,739
Total
22,8232,739
1,441
27,003Financial liabilities
Financial liabilities measured at fair value
through net profit or loss
Derivative liabilities
5,114
5,114
Total
5,114
5,114
(Notes) 1. There were no reclassifications between Level 1 and Level 2 during the consolidated fiscal year ended March
31, 2023.
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 basedon quoted 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 fromthe previous year in respect of the financial assets classified as Level 3.

- 54 -

Notes to Revenue Recognition(1) The breakdown of revenue
Makita has conducted the business activities in single business field of the production and sales of power tools andoutdoor power equipment, etc. 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:(Millions of Yen)
The consolidated fisical year
(From April 1, 2022
To March 31, 2023)
Power tools

419,012

Outdoor power equipments, household and other products

195,828

Parts, Repairs, and accessories

149,862

Total

764,702*Amounts less than 1 million yen have been rounded.
(ii) Revenue by region
Details of revenue by region are as follows:(Millions of Yen)
The consolidated fisical year
(From April 1, 2022
To March 31, 2023)
Japan
EuropeNorth America(United States)
Asia
Others
Total(Notes) Revenue is classified as countries or regions on the basis of the location of customers.
Amounts less than 1 million yen have been rounded.

122,978
348,994
119,064(105,083)
53,276
120,390764,702(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

2,832.89 yen

Profit attributable to owners of the parent per share
43.11 yen

(Basic)Notes to Significant Subsequent Events:
Repurchase of treasury shares
Makita hereby announces that it has resolved, at a meeting of the Board of Directors held on April 27, 2023, torepurchase treasury shares pursuant to the provisions of Article 459, Paragraph 1 of the Companies Act and
Makita’s Article of Incorporation. Details of the repurchase are as follows:
1. Reason for the repurchase of treasury shares- 55 -

To flexibly return profits to shareholders based on Makita’s basic profit distribution policy
2. Details of matters related to the repurchase(1) Class of shares to be repurchased Common shares(2) Total number of shares to be repurchased
Up to 3,100,000 shares (1.14% of total number of issued shares (excluding treasury shares))(3) Total purchase price for repurchase of shares Up to 10 billion yen(4) Period of repurchase May 15, 2023 to August 31, 2023
(Reference) The status of treasury shares as of March 31, 2023:
Total number of issued shares (excluding treasury shares) 271,541,846 shares
Number of treasury shares 8,475,674shares*Amounts less than 1 million yen have been rounded.

- 56 -STATEMENT OF CHANGES IN NET ASSETS(From April 1, 2022 to March 31,2023)(Millions of Yen)
Shareholders’ equity
Capital surplus
Share capital
Balance at April 1, 2022
Changes during this period
Provision of reserve foradvanced depreciation
Reversal of reserve foradvanced depreciation
Dividends paid
Net income
Purchase of treasury shares
Disposal of treasury shares
Net change of items otherthan shareholders’ equity
Total changes during this period
Balance at March 31, 2023

Additional paid-in capital

Other capital surplus

Total capital surplus

47,525176

47,701

21

21

21
197

21
47,722

24,20624,20647,525
Shareholders’ equity
Retained earnings
Other retained earnings

Balance at April 1, 2022
Changes during this period
Provision of reserve foradvanced depreciation
Reversal of reserve foradvanced depreciation
Dividends paid
Net income
Purchase of treasury shares
Disposal of treasury shares
Net change of items otherthan shareholders’ equity
Total changes during this period
Balance at March 31, 2023

Balance at April 1, 2022
Changes during this period
Provision of reserve foradvanced depreciation
Reversal of reserve foradvanced depreciation
Dividends paid
Net income
Purchase of treasury shares
Disposal of treasury shares
Net change of items otherthan shareholders’ equity
Total changes during this period
Balance at March 31, 2023

Legal Reserve Reserve Reserve forfor
reserveadvancedfortechnical depreciation
dividend
research
5,669
750
1,500
2,372

5,669

750

85,000

4

(4)

(36)

36

(32)
2,340

1,500

Generalreserves

Retainedearnings
carriedforward273,757

85,000Total
retainedearnings
369,048(19,551)
15,451(19,551)
15,451(4,068)269,689(4,100)364,948

Valuation and translation adjustments
Net unrealized gains on
Total valuation and translation
securities
adjustments
7,104
7,104

Total
Treasuryshareholders’sharesequity(11,540)

429,415(1)
13(19,551)
15,451(1)
34

12(11,528)(4,067)425,348

Total net assets
436,519(19,551)
15,451
(1)
34
1,550

1,550

1,550

1,550
8,654

1,550
8,654

(2,517)434,002

Note: Amounts less than 1 million yen have been rounded.

- 57 -

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 depreciated by
the straight-line method over the lease term with no residual value, the leaseterm being regarded as the useful life.

- 58 -

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 thehistorical write-off ratio for accounts receivable. For accounts
receivable that are difficult to collect, individually estimated write-off
amounts are reserved.
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
post-sale repair services, we appropriate the projected amount basedon 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 theconclusion of the ordinary general meeting of shareholders held on
June 29, 2006. The balance of the period end is the amount of thereserve for the period of office served until abolition of the plan bythose 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 power 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 “Implementation Guidance on Accounting Standard for Fair Value Measurement”(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021, the “Implementation Guidance on
Accounting Standard for Fair Value Measurement”) from the beginning of the fiscal year ended March 31, 2023, and in
the future the Corporation will apply the new accounting policy specified in the Implementation Guidance on
Accounting Standard for Fair Value Measurement, in accordance with the transitional treatment stipulated in Paragraph27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement . 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 54,530 million yen, which is recorded
after subtracting the book value devaluation of 1,494 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- 59 -

period.
Notes to Balance Sheet
1. Accumulated depreciation on tangible fixed assets:
Buildings

33,798million yen

Structures

3,116

million yen

Machinery and equipment

12,947

million yen

Vehicles and transportation equipment281

million yen

Tools, furniture and fixtures

29,100

million yen

Total

79,242

million yen

13,353

million yen

1,457

million yen

4,006

million yen

1,335

million yen

Short-term receivables

142,017

million yen

Short-term payables

26,568million yen

Sales266,025

million yen

Purchases, etc.
Amount of non-operating transactions

273,483

million yen

24,244

million yen

2. Guarantee:
Guarantee for borrowing from financial institution
Maximum amount of guarantee for Makita U.S.A. Inc.
(100 million U.S. dollars)
Maximum amount of guarantee for Makita d. o. o
(10 million euros)
Guarantee for trade accounts payable
Maximum amount of guarantee for Makita U.S.A. Inc.
(30 million U.S. dollars)
Maximum amount of guarantee for Makita Corp. of
America(10 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 shares
Beginning of theKind of sharesperiodCommon share
8,485,061shares(Reasons for the change)

Increase

Decrease

465 shares

9,852 shares

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

465

sharesAllotment of restricted shares

9,720

sharesSales of shares constituting less than a full unit

132

shares

The reason for the decrease is as follows:- 60 -End of the period
8,475,674shares

Notes to Tax Effect Accounting
1. The main reasons for deferred income tax assets and liabilities are as follows:
Deferred tax assets
Accrued expenses
Inventories
Accrued enterprise taxes
Loss on valuation of investment securities
Excess in depreciation
Retirement allowance for directors and audit &supervisory board members
Loss on impairment of fixed assets
Tax loss carry-forward
Other
Subtotal
Valuation allowance

1,768
1,040
(30)
455
3,289

million yen
million yen
million yen
million yen
million yen

91

million yen

84
3,238
380

million yen
million yen
million yen

10,375 million yen(372) million yen

Total

10,003

million yen(3,311)(2,611)(1,012)(50)

million yen
million yen
million yen
million yen

Deferred tax liabilities
Prepaid pension cost

Net unrealized gains on securities
Reserve for advanced depreciation of fixed assets
Other
Total

(6,984) million yen

Net amount of deferred tax liabilities

3,019 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(38.3%)

Withholding tax on foreign dividends

12.5%

Tax sparing
Items that are not counted as a deduction
permanently such as entertainment expenses
Inhabitant tax on per capita basis
Other
Effective income tax rate after the adoption of tax effectaccounting(0.2%)
0.6%
0.6%
0.6%
6.0%

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

391
3,195

- 61 -

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)

Principal business orDesign, production and distribution of automatic

position

regulators

Maruwa, Ltd. (Note 2)
Real estate business

Owning and owned
ratio of voting rights

Direct owned ratio: 0.0

Direct owned ratio: 3.2(%)
RelationshipPrincipal
tramsactions
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)

78

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.

- 62 -

2. Subsidiaries
Attribute

Subsidiaries

Corporate nameMakita U.S.A. Inc.

Owning and owned
ratio of voting

Direct owning ratio: 100.0

rights (%)
Debt guarantee

Sale of merchandise and finished goods

Relationship

Detail oftransaction

Subscription of additional increase of capitalInterlocking Directors (Number of directors: 3)
Debt guarantee (Note 1)

Sale of merchandise and finishedgoods (Note 2)

Capital increase (Note 3)

17,35938,00225,817-

Trade receivable--

31,989-Transaction
amount(Millions of Yen)
Account title
Balance at end of
the period(Millions of Yen)

Attribute
Corporate name
Owning and owned
ratio of voting
rights (%)
Relationship
Detail oftransaction

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 amount33,162(Millions of Yen)
Account title

Trade receivable

Balance at end of
the period

9,663(Millions of Yen)

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Attribute

Subsidiaries
Makita Oy

Corporate name(Finland)Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
Relationship
Detail oftransaction

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

Sale of merchandise and finished goods (Note 2)

Transaction amount

17,348(Millions of Yen)
Account title

Trade receivable

Balance at end of
the period

7,240(Millions of Yen)

Attribute

Subsidiaries

Corporate nameMakita (Australia) Pty. Ltd.

Owning and owned
ratio of voting

Direct owning ratio:100.0

rights (%)
Relationship
Detail oftransaction

Sale of merchandise and finished goods
Sale of merchandise and finished goods (Note 2)

Transaction amount33,457(Millions of Yen)
Account title

Trade receivable

Balance at end of
the period

7,466(Millions of Yen)

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Attribute
Corporate nameSubsidiaries
Makita Werkzeug GmbH.
(Austria)

Owning and owned
ratio of voting

Indirect owning ratio:100.0

rights (%)
Relationship
Detail oftransaction

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

Sale of merchandise and finished goods (Note 2)

Transaction amount

13,821(Millions of Yen)
Account title

Trade receivable

Balance at end of
the period

9,017(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
Detail oftransaction

Loan of funds
Interlocking Directors (Number of directors: 1)
Collection of loans receivable (Notes 4)

Transaction amount

1,556(Millions of Yen)
Account title

Loans receivable to affiliates

Balance at end of
the period

10,929(Millions of Yen)

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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 (%)
Relationship

Detail of

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.

transaction
Transaction amount(Millions of Yen)
Account title(Note 2)

(Note 2)

107,081

151,128

Trade payable

Trade payable

13,46910,903

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 (130 million U.S. dollars).
(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

1,598.29

yen

Net income per share

56.90

yen

Notes to Significant Subsequent Events:
Repurchase of treasury shares

It is omitted as described in “Notes to Significant Subsequent Events” of the Notes to the Consolidated Financial
Statements.

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.

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