Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2020
(IFRS Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2020 (Unaudited)
May 21, 2020

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

1. Summary operating results of the year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020%
492,617
0.4
Revenue........................................................................
490,578
2.8
64,046(18.2)
Operating profit ............................................................
78,305(2.4)
66,008(17.4)
Profit before income taxes.............................................
79,9190.1
Profit ............................................................................
56,191
1.3
48,051(14.5)
Profit attributable to owners of the parent ......................
55,7501.5
47,731(14.4)
Comprehensive income ..................................................
35,592(44.7)
15,415(56.7)
Yen
Profit attributable toowners of the parent per share(Basic) ......................................................................
205.37175.80 (Diluted) ...................................................................
205.34
Ratio of profit attributable to owners of the parent
to total equity attributable to owners of the parent(%)....
9.9%
8.3%
9.7%
Ratio of profit before income taxes to total assets(%).....
12.0%
Ratio of operating profit to revenue(%) .........................
16.0%
13.0%
Notes:
1. Amounts of less than one million yen have been rounded.
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income
taxes, profit, profit attributable to owners of the parent, and comprehensive income against the previous year.
3. The amount of profit attributable to owners of the parent per diluted per share for the fiscal year ended March 31,
2020 is not shown as diluted shares do not exist.
(2) SELECTED CONSOLIDATED FINANCIAL POSITION

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

Yen (millions)
As of
As of
March 31, 2020
March 31, 2019
680,250
674,564
577,222575,748572,748571,275
84.2%

84.7%
Yen

Equity attributable to owners of the parent per share.......

English Translation of "KESSAN TANSHIN" originally issued in Japanese

2,109.83

2,104.01

1

(3) CONSOLIDATED CASH FLOWS
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
Net cash provided by operating activities........................
Net cash used in investing activities ...............................
Net cash used in financing activities ...............................
Cash and cash equivalents, end of the fiscal year ............
2.

23,155(15,329)(8,231)
146,51257,310(30,506)(22,931)
143,439

Dividend Information
Yen
For the year
ended March 31,
2019

For the year
ended March 31,
2020

For the year
ending March
31, 2021(Forecast)

10.00
52.00
62.00

10.00
43.00
53.00

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

Yen (millions)
Total cash dividend ...................................................
16,831
14,390
Dividend payout ratio (%).........................................
30.2%
30.1%
Ratio of equity attributable to owners of the parent to
2.5%
total assets (%)..........................................................
3.0%
Note: While the Corporation has set forth under the Articles of Corporation of the Corporation that the record date forthe payment of dividend shall be the last day of a relevant period, at the present time, the projected amount ofdividends as of the said record date has not been determined yet. For further details, refer to “(5) Basic policy
regarding profit distribution and cash dividend for fiscal 2020 and 2021” on page 5.
3. Consolidated Financial Performance Forecast for the year ending March 31, 2021
We have determined that it is difficult at present to reasonably forecast the consolidated financial performance for the
fiscal year ending March 2021 due to uncertainty over the value of an impact resulting from the global epidemic of
COVID-19 on its performance. We plan to disclose our financial forecasts as soon as possible.
4. Others(1) Changes in important subsidiaries for the fiscal year (Changes in specified subsidiaries accompanied by changes
in scope of consolidation): None
(2) Changes in accounting policies:
1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimate: None
(3) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury stock):
2. Number of treasury stock:
3.Average number of shares outstanding:

As of March 31, 2020:
As of March 31, 2019:
As of March 31, 2020:
As of March 31, 2019:
For the year ended March 31, 2020:
For the year ended March 31, 2019:

280,017,520
280,017,520
8,500,530
8,550,463
271,502,528
271,467,574

Makita’s earnings releases (KESSAN TANSHIN) are not subject to an audit.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

2

SUPPLEMENT INFORMATION (CONSOLIDATED)
1. Overview of operating results(1) Overview of operating results for the fiscal year ended March 31, 2020
Looking at the global economic situation for the year ended March 31, 2020, increased uncertainty concerning tradedispute between China and U.S., confusion caused by Brexit, and increased intensity over political turmoil in the
Middle East have led to worsened business sentiment regarding world economy; furthermore, the outbreak of
COVID-19 has left significant damages on the world economy.
Under these circumstances, on the development side, the Makita Group concentrated its efforts on expanding
lithium-ion battery product lineup, such as a new cordless tool series with “40Vmax lithium-ion battery” thatrealizes higher and maximized power output of tools as well as improved durability; cordless gardening equipment
featuring work efficiency higher than engine-powered ones; cordless TV with radio utilized also at the time ofdisaster to gather information.
On the production side, we continued to implement measures including the promotion of multi-polarized global
production, cost reduction through local procurement of components, and introduction of labor-saving or unmanned
facilities.
On the sales side, we focused on expanding the sales of lithium-ion battery products. Furthermore, we worked hard
to strengthen our community- and customer-based sales network by increasing sales and after-sales service bases
and to strengthen our logistics by aggressive investments for warehouses and distribution facilities both in domestic
and overseas.
Although overseas revenue translated into yen was eroded by currency exchange rates and there was a decrease indemand for tools due to COVID-19, our consolidated revenue for this period increased by 0.4% from the previous
year to 492,617 million yen, record-high revenue, due to robust sales primarily in Eastern Europe and Japan. On
profit side, despite increased revenue, operating profit decreased by 18.2% to 64,046 million yen (operating profit
ratio: 13.0%), owing to an increase in revenue and administration costs and to the deterioration of the cost-of-sales
ratio due to the impact of currency exchange rates and the additional tariffs imposed by U.S. on Chinese products.
Meanwhile, profit before income taxes decreased by 17.4% to 66,008 million yen (profit before income taxes ratio:
13.4%) and profit attributable to owners of the parent decreased by 14.4% to 47,731 million yen (ratio of profit
attributable to owners of the parent: 9.7%).
Consolidated revenue by region are as follows:
Consolidated revenue in Japan increased by 9.3% to 100,697 million yen compared to the previous year. This wasdue to labor shortage in building and construction sites resulting in strong sales of cordless power tools in search ofefficiency and also due to strong sales of cordless gardening equipment.
Although consolidated revenue in Europe translated into yen was eroded resulting from appreciation of yen against
Euro, consolidated revenue in Europe was supported by solid demand for power tools in almost all areas and steadysales growth of cordless gardening equipment until third quarter. Nonetheless, the impact of COVID-19 outbreak inthe market towards the end of fourth quarter partially offset the increase in revenue, as a result, the consolidated
revenue in full fiscal year increased only slightly by 1.4% to 216,230 million yen.
In North America, we aimed at expansion of sales of lithium-ion battery product including gardening equipment
amid intensifying competition; however, due to eroded revenue after translation into yen by a deprecation of dollars
and also to the impact of COVID-19 outbreak in the market towards the end of fourth quarter, consolidated revenue inNorth America decreased by 0.3% to 72,304 million yen.
In Asia, despite robust sales in some areas such as India partially offset the impact of slowing economy in China
until third quarter, the impact of COVID-19 outbreak in the market from the second half of fourth quarter resulted indecreased consolidated revenue in Asia by 4.7% to 38,998 million yen.
Consolidated revenue in Central and South America decreased by 6.5% to 26,000 million yen. This was due to adepreciation in each country’s currency against yen and slowing economy in main countries despite our effort toexpand sales mainly of lithium-ion battery products.
In Oceania, we aimed at expanding sales of product such as cordless gardening products amid impact of slowing
demand in Australian housing market; however, consolidated revenue this market declined by 6.0% to 28,421 million
yen due to COVID-19 outbreak towards the end of fourth quarter in the market and also to the yen’s appreciation
against local currencies.
English Translation of "KESSAN TANSHIN" originally issued in Japanese3Consolidated Revenue in the Middle East and Africa decreased by 27.6% to 9,967 million yen. This was due topoor sales amid political and economic turmoil in the Middle East.
(2) Overview of financial situation for the fiscal year ended March 31, 2020
Total assets as of the end of the year decreased by 5,686 million yen to 674,564 million yen compared to theprevious year. The decrease was mainly due to the decrease in “other financial assets” and “trade receivables andother receivables” although there was an increase in right-of-use assets following the adoption of IFRS 16th lease
regulation.
Total liabilities decreased by 4,212 million yen to 98,816 million yen compared to the previous year due mainly to
an increase in “trade payables and other payables” as well as “borrowings” despite an increase in other financial
liabilities following the adoption of IFRS 16th lease regulation.
Total equity decreased by 1,474 million yen to 575,748 million yen compared to the previous year. This decrease
was mainly due to exchange gain or loss recognized in “exchange differences on translating foreign operations”
included in the “other components of equity”.
(3) Overview of cash flow situation for the fiscal year ended March 31, 2020
Total cash and cash equivalents amounted to 143,439 million yen, decreased by 3,073 million yen compared to theend of the previous year.
Net cash provided by operating activities amounted to 57,310 million yen (23,155 million yen in the previous year),up 34,155 million yen over the previous year due to less amount of increase in inventory compared to the previous
year.
Net cash used in investing activities amounted to 30,506 million yen (15,329 million yen in the previous year), up
15,177 million yen over the previous year, due mainly to an increase in purchase of non-current assets.
Consequently, free cash flows (the sum of cash flows from operating activities and investing activities) amounted to
26,804 million yen (7,826 million yen in the previous year), up 18,978 million yen over the previous year.
Net cash used in financing activities amounted to 22,931 million yen (8,231 million yen in the previous year), up
14,700 million yen over the previous year, due to an increase in repayment of short-term borrowings.
(4) Outlook for the fiscal year ending March 31, 2021
In the future, the Makita Group expects that the prospect for the global economy will continue to be uncertain.
Meanwhile, the Group believes that demand for environmental and human friendly tools that contribute to thesolution of social issues, such as the labor shortage and environment conservation by increased efficiency of works,
will continue to increase further both in emerging and developed countries.
To cope with these assumed conditions, Makita will:࣭ Strengthen its R&D and product development capabilities, mainly for the technologies of motors andtechnologies for discharge/charge of batteries, to take the initiative in cordless products market;
࣭ Position cordless gardening equipment as a future pillar of its business after power tools and focus its effortson the development and sales expansion of new products;
࣭ Implement measures to strengthen and improve the efficiency of production, procurement and distribution,
while further upgrading global production bases; and࣭ Strive to raise its brand power by promoting the establishment of a sales and after-sales service network tooffer community-based and fine-tuned response to needs of customers around the world.
On the basis of these factors, the Group will strive to maintain a solid presence in the industry and contribute toachieve a sustainable society as a global supplier power tools used in home-building and in everyday life.
(Risks associated with COVID-19)
With regard to COVID-19, the stagnant economic activity due to the worldwide spread of the infectious diseases maylead to a decline in tool demand and a decrease in the revenue and profits in the Group, which has a high overseas sales
ratio. The spread of infection, especially in Europe, Japan and North America, where sales ratios are high, may have asignificant impact on the company's performance.
At the time of COVID-19 outbreak in China in February 2020, the Group's China plant temporarily reduced
production and halted operations. If COVID-19 spreads again in China, where the Group's production ratio is high andsuppliers are concentrated, it could have a significant impact on the Group's production and sales activities.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

4(Financial forecast for fiscal 2021)
We have determined that it is difficult at present to reasonably forecast the consolidated financial performance for the
fiscal year ending March 2021 due to uncertainty over the value of an impact resulting from the global epidemic of
COVID-19 on its performance. We plan to disclose our financial forecasts as soon as possible.
(5) Basic policy regarding profit distribution and cash dividend for the fiscal 2020 and 2021
Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or
greater, with a lower limit on annual cash dividends of 10 yen per share. However, in the event special circumstances,computation of the amount of dividends will be based on consolidated net income attributable to Makita Corporation
after certain adjustments. With respect to repurchases of its outstanding shares, Makita aims to implement a flexible
capital policy, augment the efficiency of its capital employment, and thereby boost shareholder profit. Also Makita
continues to consider execution of own share repurchases in light of trends in stock prices.
Makita intends to maintain a financial position strong enough to withstand the challenges associated with changes
in its business environment and other changes and allocate funds for strategic investments aimed at expanding its
global operations.
Our forecast for dividends is as follows;
For the year ended
March 31, 2020
(Result and Forecast)

For the year ending
March 31, 2021
(Forecast)

Cash dividend per share:
Interim ...................................................................

10.00 yen

10.00 yen

Year-end.................................................................

43.00 yen

(Note)(Note)
Total.......................................................................
53.00 yen
Note: The Board of Directors plans to meet in April 2021 for a report on earnings for the year ending March 31, 2021.
At such time, in accordance with the basic policy regarding profit distribution mentioned above, the Board of
Directors plans to propose a dividend equivalent to at least 30% of profit attributable to owners of the parent.
The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June
2021. However, if certain special circumstances arise, computation of the amount of dividends will be based on
consolidated net income attributable to Makita Corporation after certain adjustments.

The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated
net income attributable to Makita Corporation per share (after adjustments for special circumstances) andmultiplied by 100.
2. Basic Rationale for Selection of Accounting Standards
Makita has voluntarily adopted International Financial Reporting Standards (IFRS) from the fiscal year ended
March 31, 2019 in order to improve global comparability in financial market.

English Translation of "KESSAN TANSHIN" originally issued in Japanese53. Consolidated Financial Statements (Unaudited)(1) Consolidated Statement of Financial Position
Yen (millions)
As of March 31, 2019
As of March 31, 2020
Composition ratio

Composition ratio

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

146,512

143,439

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

79,45069,599Inventories....................................................

219,938

214,560

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

37,82825,235

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

9,401

7,633

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

493,12972.5%

460,466

68.3%

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

112,441

146,649

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

8,039

8,749

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

43,56638,551

Net defined retirement benefit assets .............

9,541

9,511

Deferred income taxes ..................................

9,342

6,932

Other non-current assets................................

4,192

3,706

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

187,12127.5%

214,098

31.7%

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

680,250

100.0%

674,564100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese

6Yen (millions)
As of March 31, 2019
As of March 31, 2020
Composition ratio

Composition ratio

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

38,90434,959Borrowings...................................................

11,799

7,997

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

220

2,468

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

7,153

3,757

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

3,040

2,931

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

29,67827,264

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

90,794

13.3%

79,376

11.7%

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

3,231

3,138

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

256

9,894

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

1,293

1,248

Deferred income taxes ..................................

7,236

4,952

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

218

208

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

12,234

1.8%

19,4402.9%

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

103,02815.1%

98,816

14.6%

EQUITY
Common stock..............................................

23,80523,805Additional paid-in capital..............................

45,57145,531Retained earnings .........................................

508,622

540,063

Treasury stock, at cost...................................

(11,681)(11,554)

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

6,431(26,570)

Total equity attributable to owners of the parent...

572,74884.2%

571,275

84.7%

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

4,474

0.7%

4,473

0.7%

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

577,22284.9%

575,748

85.4%

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

680,250

100.0%

674,564100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese7(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income
Consolidated Statements of Profit or Loss
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
Composition ratio

Composition ratio

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

490,578 100.0%

492,617 100.0%

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

(313,356) (63.9%)(323,776) (65.7%)

GROSS PROFIT...................................................................

177,222

168,841

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

(98,917) (20.1%)

OPERATING PROFIT ..........................................................

78,305

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

2,680

2,558

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

(1,066)(596)

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

79,919

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

(23,728)

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

56,191

11.5%

48,051

9.8%

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

55,75011.4%

47,731

9.7%

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

441

0.1%

320

0.1%

36.1%
16.0%

16.3%

34.3%

(104,795) (21.3%)
64,04613.0%

66,00813.4%(17,957)

Profit attributable to:Consolidated Statements of Comprehensive Income
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
56,191

48,051(87)

201

through other comprehensive loss..........................................

(7,889)(2,509)Total of items that will not be reclassified to loss .......................

(7,976)(2,308)Exchange differences on translating foreign operations ..........

(12,623)(30,328)

Total of items that may be reclassified to profit (loss) ................

(12,623)(30,328)

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

(20,599)(32,636)COMPREHENSIVE INCOME .................................................

35,592

15,415

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

35,286

15,271

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

306

144

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

Items that will not be reclassified to profit (loss)
Remeasurement of defined benefit plans................................
Equity financial goods measured at fair value

Items that may be reclassified to profit or loss

Comprehensive income attributable to:English Translation of "KESSAN TANSHIN" originally issued in Japanese8(3) Consolidated Statement of Changes in Equity
Yen (millions)
For the year ended March 31, 2019
Equity attributable to owners of the parent

Balance at April 1, 2018

Commonstock

Additional
paid-in
capital23,80545,531Retainedearnings

Profit for the period

Other
componentsof equity

Treasurystock

469,232(11,617)-Comprehensive income-

Dividends paid

55,750-

Disposal of treasury stock0

Share-based paymenttransaction

40

Transfer from othercomponents of equity toretained earnings

558,439

55,750441

56,191(20,464)(20,464)(135)(20,599)(20,464)

35,286306

35,592(16,560)(225)(16,785)

(4)

(4)

(4)

0

0

0

40

40

-

-

(60)

(60)

200

(200)
(60)

Other increase or decrease
Total amounts of transactions
with owners

Total
equity4,393(16,560)

Purchase of treasury stock

Total

554,046

55,750

Other comprehensive income

Balance at March 31, 201927,095

NonControllinginterest-

40(16,360)

(64)

(200)

(16,584)(225)(16,809)23,80545,571

508,622(11,681)

6,431

572,748

4,474

577,222

Yen (millions)
For the year ended March 31, 2020
Equity attributable to owners of the parent

Balance at April 1, 2019

Commonstock

Additional
paid-in
capital23,80545,571Retainedearnings

Profit for the period

Other
componentsof equity

Treasurystock

508,622(11,681)--

Dividends paid

47,731-

4,474

577,22247,731

320

48,051(32,460)(32,460)(176)(32,636)(32,460)

15,271

144

15,415(16,831)(145)(16,976)(16,831)

Purchase of treasury stock

Total
equity572,748

47,731Other comprehensive income
Comprehensive income

6,431

NonControllinginterest

Total

(2)

(2)

(2)

Disposal of treasury stock

(13)

61

48

48

Share-based paymenttransaction

(27)

68

41

41

(541)

-

-

Transfer from othercomponents of equity toretained earnings
Total amounts of transactions
with owners
Balance at March 31, 2020

541
-

(40)

(16,290)

127

(541)

(16,744)(145)(16,889)

23,80545,531

540,063(11,554)(26,570)

571,275

4,473

575,748

English Translation of "KESSAN TANSHIN" originally issued in Japanese9(4) Consolidated Statements of Cash Flows
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:Profit ................................................................................................

56,191

48,051

Depreciation and amortization...........................................................

11,271

14,349

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

23,728

17,957

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

(1,614)(1,962)

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

113

(808)

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

(2,085)

4,396

Increase in inventories.......................................................................

(30,455)(9,148)

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

2,581(1,499)

Increase in retirement benefit assets and liabilities .............................

395

586

Decrease (Increase) in guarantee deposits..........................................

(8,990)741

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

(4,487)

3,538

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

46,64876,201Dividends received ...........................................................................

643

712

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

2,004

1,488

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

(47)

(431)

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

(26,093)(20,660)

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

23,15557,310Purchase of non-current assets...........................................................

(23,867)(44,409)

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

382

2,574

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

(12,745)(4,000)CASH FLOWS FROM INVESTING ACTIVITIES:

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

5,634

7,641

Payments into time deposits ..............................................................

(31,902)(33,534)

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

47,75840,960

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

(589)

262

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

(15,329)(30,506)

Net increase (decrease) in short-term borrowings .............................
Purchase and sales of treasury stock, net............................................

8,704(3,461)(4)

46

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

(16,560)(16,831)

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

(36)(2,537)

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

(335)

(148)

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

(8,231)(22,931)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS ...................................................................
NET CHANGE IN CASH AND CASH EQUIVALENTS .................

(403)(6,946)(808)(3,073)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR .......

147,320

146,512

CASH AND CASH EQUIVALENTS, END OF YEAR.....................

146,512

143,439

CASH FLOWS FROM FINANCING ACTIVITIES:English Translation of "KESSAN TANSHIN" originally issued in Japanese10(5) Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
Changes in accounting policies:
The Makita Group has adopted IFRS 16 “Lease” (“IFRS 16”) from the first three-month period of the year ended
March 31, 2020.
In accordance with IFRS 16, the Group has recorded leases that had been classified as operating leases under IAS
17 ”Lease” as right-of-use assets and lease liabilities in the consolidated statement of financial position.
On transition to IFRS 16, the Group has chosen to apply the practical expedient that allows the Group to continue
using the same method as before with regard to whether contracts are leases or not.
In line with the transition provision in IFRS 16, the Group has adopted the modified retrospective approach (a method
to recognize the cumulative effects of adopting IFRS 16 at the date of adoption) at the date of transition.
At the first date of the year ended March 31, 2020 (“the date of initial application”), the Group additionallyrecognized total assets including right-of-use assets (which were included in property, plant and equipment in the
consolidated statement of financial position) of 10,656 million yen and lease liabilities of 10,656 million yen (whichwere included in other financial liabilities).
The Group measured the lease liabilities at the date of initial application at the present value of aggregate residual
lease payments at the inception of adoption, discounted using the lessee’s incremental borrowing rate of interest at the
inception of adoption. As of the date of initial application, the weighted average of the incremental borrowing rate was
2.5%.
On transition to IFRS 16, The Group has adopted the following practical expedients:
࣭Applying a single discount rate to a portfolio of leases with reasonably similar characteristics.
࣭Applying the exemption on not recognizing right-of-use assets or lease liabilities for leases for which the lease term
ends within 12 months of the date of initial application.

Segment Information
Yen (millions)
For the year ended March 31, 2019
North
Asia
Total
Other area
America

Eliminations

Consolidated

63,264806(451,759)

490,578-878,267

64,070(451,759)

490,578

74,115

5,715(1,525)78,305

Yen (millions)
For the year ended March 31, 2020
North
Asia
Total
Other area
America

Eliminations

Consolidated

Japan

Europe(2) Inter-segment .......

112,143
220,111

213,903
5,902

74,854
3,941

26,414
220,999

427,314450,953

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

332,254219,805

78,795

247,413

Operating profit ............

32,33018,424267

23,094

Revenue:(1) Externalcustomers ...............

Japan

Europe(2) Inter-segment .......

118,797
176,567

217,113
7,323

74,1393,896

24,912
188,012434,961
375,798

57,656587(376,385)

492,617-

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

295,364

224,436

78,035

212,924

810,759

58,243(376,385)

492,617

Operating profit (loss) ...

22,726

13,252(201)

17,87753,654

1,327

9,065

64,046

Revenue:(1) Externalcustomers ...............

English Translation of "KESSAN TANSHIN" originally issued in Japanese11Revenue by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
Composition ratio

Increase(Decrease)

Composition ratio(%)

Finished goods..............................................................
Parts, repairs and accessories.........................................

408,165
82,413

83.2%
16.8%

405,175
87,442

82.2%
17.8%

(0.7)
6.1

Total revenue............................................................

490,578

100.0%

492,617100.0%

0.4

Information per share
Yen

Equity attributable to owners of the parent per share......

As ofMarch 31, 2019
2,109.83

As ofMarch 31, 2020
2,104.01
Yen

For the year ended
March 31, 2019
Profit attributable to owners of the parent per share(Basic)..........................................................................
(Diluted).......................................................................

205.37205.34

For the year ended
March 31, 2020
175.80-Note: 1. Profit attributable to owners of the parent per share (Basic) is calculated on the basis of the average number ofshares outstanding during the year. Average number of shares outstanding is as follows:
For the year ended March 31, 2019: 271,467,574
For the year ended March 31, 2020: 271,502,528
2. The amount of profit attributable to owners of the parent per diluted per share for the fiscal year ended March 31, 2020 is
not shown as diluted shares do not exist.

Significant Subsequent Events: NoneEnglish Translation of "KESSAN TANSHIN" originally issued in Japanese12

4. SUPPORT DOCUMENTATION (CONSOLIDATED)(1) Consolidated Financial Results and Forecast
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
(%)

(%)

Revenue.................................................................................................
490,5782.8
492,617
0.4
92,129 11.6
100,697
9.3
Domestic ...........................................................................................
398,4490.9
391,920(1.6)
Overseas............................................................................................
78,305(2.4)
64,046 (18.2)
Operating profit .....................................................................................
79,9190.1
66,008 (17.4)
Profit before income taxes......................................................................
55,7501.5
47,731 (14.4)
Profit attributable to owners of the parent ...............................................
175.80205.37
Profit attributable to owners of the parent per share (Yen)......................
16,42417,090
Number of Employees............................................................................
Notes: The table shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, andprofit attributable to owners of the parent compared to the previous year.
We have determined that it is difficult at present to reasonably forecast the consolidated financial performance for the
fiscal year ending March 2021 due to uncertainty over the value of an impact resulting from the global epidemic of
COVID-19 on its performance. We plan to disclose our financial forecasts as soon as possible.
(2) Consolidated Revenue by Geographic Area
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
(%)

(%)

Japan ............................................................
92,12911.6
100,6979.3
216,230
1.4
Europe..........................................................
213,238
5.5
72,304(0.3)
North America ..............................................
72,508(1.8)
38,998(4.7)
Asia..............................................................
40,909(7.2)
26,000(6.5)
Central and South America............................
27,801(0.4)
28,421(6.0)
Oceania ........................................................
30,222(3.4)
9,967 (27.6)
The Middle East and Africa...........................
13,771 (11.1)
492,617
0.4
Total .............................................................
490,578
2.8
Notes: The table above sets forth Makita's consolidated revenue by geographic area based on the customer’s location
for the periods presented. Accordingly, it differs from “Segment Information” on page 11.
The table shows the changes in the percentage ratio of revenue compared to the corresponding period of theprevious year.
(3) Exchange Rates
Yen

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

For the year ended
March 31, 2019

For the year ended
March 31, 2020

110.92
128.4416.54

108.70120.81
15.60

English Translation of "KESSAN TANSHIN" originally issued in Japanese13

(4) Production Ratio (unit basis)

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

For the year ended
March 31, 2019

For the year ended
March 31, 2020

Composition ratio

Composition ratio

9.5%
90.5%

10.7%
89.3%

(5) Consolidated Capital Expenditures, Depreciation and Amortization, and R&D cost
Yen (millions)
For the year ended
For the year ended
March 31, 2019
March 31, 2020
Capital expenditures..................................................
Depreciation and amortization...................................
R&D cost..................................................................

23,867
11,271
11,258English Translation of "KESSAN TANSHIN" originally issued in Japanese

44,40912,058
11,60114