FYE2023
Operating Results(Fiscal Year ended March 31, 2023)

Munetoshi Goto
President, Representative Director
May 11, 2023

1

FYE2023 Results
Variance toFYE2022

Revenue
DomesticOverseas¥764.7 billion¥123.0 billion¥641.7 billion

+3.4%
+4.2%
+3.3%

Overseas revenue ratio: 83.9% (FYE2022 84.0%)
Weighted average change for all foreign currencies:
13.1% depreciated in the value of the yen
Effect on revenue: Increase of ¥74.1 billion
21

Revenue Growth (Local Currency Basis)
JapanJapanFYE2022 +4.4%
FYE2023 +4.2%

10%5%0%-5%

FYE20221H

FYE2023
2H

1H

2H
3

Revenue Growth (Local Currency Basis)
Europe-10.4%

40%

Eastern Europe

Western Europe

FYE2022 +26.4%
FYE2023 -5.9%

FYE2022 +12.8%
FYE2023 -13.2%

30%
20%
10%0%-10%-20%-30%

FYE20221H

FYE2023
2H

1H

2H
42

Revenue Growth (Local Currency Basis)
North America, Asia

North America

Asia

FYE2022 +15.8%
FYE2023 -11.5%

FYE2022 +17.7%
FYE2023 -5.6%

20%
10%
0%-10%-20%-30%

FYE20221H

FYE2023
2H

1H

2H
5

Revenue Growth (Local Currency Basis)
Central & South America, Oceania, Mid-East/Africa
Central & South America
FYE2022 +34.7%
FYE2023-2.6%

Mid-East/Africa

Oceania

FYE2022 +14.4%
FYE2023 +2.4%

FYE2022 +14.3%
FYE2023 -11.1%

60%
50%
40%
30%
20%
10%
0%
-10%
FYE2022-20%
1H

FYE2023
2H

1H

2H

63

Outdoor Power Equipment (OPE)OPE Total
Variance to FYE2022（yen）
Variance to FYE2022（Local currency）

Battery Powered Backpack Blower
UB002C

Although the growth rate slowed down
due to the falling off of stay-at-homedemand, the summer drought in Europe
and full-scale vacations for the first timein three years, cordless OPE continued
to perform steadily.

+5%
-5％

Cordless OPE
Variance to FYE2022
（yen）

+14%

Variance to FYE2022（Local currency）+5%
7

Lithium-ion Battery Products
Lithium-ion Battery Products

Cordless Impact Driver
DTD173

Variance to FYE2022
（yen）

+4%

Variance to FYE2022（Local currency）-5％

Proportion of cordlessproducts in sales overall

54％

Sales decelerated with thedeterioration of the market
environment
Sales continued to expand in developing
countries in Asia, Central and SouthAmerica, etc.
84

Production, Sales, Inventory
10 thousands of unit

FYE2019 FYE2020 FYE2021 FYE2022 FYE2023 Variance
Production

3,058

2,872

3,959

5,005

2,635-47.3%

Japan

290

308

304

351

207

-41.0%

Europe

512

577

906

1,176

509-56.7%

North America

134

102

119

143

75-47.7%

Asia

2,013

1,778

2,488

3,148

1,743

-44.6%

Central and SouthAmerica

109

107

142

187

101-46.2%

External
Procurement

170

159

291

427

202-52.8%

Sales

3,151

3,205

3,896

4,385

3,636

-17.1%

Inventory

1,612

1,437

1,7912,837

2,038-28.2%

9

Operating profit, Cost of sales, SG&A
FYE2022

FYE2023

Revenue\739.3 billion\764.7 billion+3.4%

Cost of Sales\510.9 billion\576.0 billion+12.7%

69.1%

75.3%

\136.6 billion\160.5 billion

18.5%

21.0%

Operating Profit\91.7 billion\28.2 billion

Operating Profit
Ratio

12.4%

3.7%

Cost of Sales Ratio

SG&A Expenses

SG&A Ratio

VarianceUp
6.2points+17.5%
Up
2.5points-69.2%
Down
8.7points
105

Analysis of Operating Profit
Yen inbillions

91.7
-20.1
-14.9
-11.3
-9.728.2-7.5

11

Financial Income (Expenses),Profit Before Income Taxes,
Profit Attributable to Owners of the Parent, EPS
FYE2022

FYE2023

Variance

FinancialIncome(Expenses)\0.8 billion(\4.3 billion)-\5.1 billion

Profit before
Income Tax\92.5 billion\23.9 billion-74.2%

ProfitAttributable toOwners of theParent\64.8 billion\11.7 billion-81.9%¥238.54¥43.11EPS

126

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

Yen in billions

49.9

FYE2021

Japan︓Distribution center（Okayama）
Thailand︓ Construction of a new building
Estonia︓ Construction of a new office

59.9

FYE2022

FYE2023

Capital Expenditure highlights during the year

39.1
R&D costs

Depreciation and amortization

Yen in billions

Yen in billions

FYE2021

FYE2022

FYE2023

13.9
17.6
21.7

FYE202112.8

FYE202214.1

FYE2023

14.9
13

Makita’s Commitments
Sustainability
 Environmental support (carbon neutral) Promoting diversity
 Corporate Governance147

Makita’s Commitments
Sustainability
Environmental support (carbon neutral) Supporting SDGs
Efforts to reduce GHG emissions
Promoting the use of renewable energy
all over the world

Thailand Plant

Okinawa sales branch
15

Makita’s Commitments
Sustainability
Promoting diversity
Promotion of initiatives and establishment of workplace environments that allow diverse
human resources to be active

Positive appointment

Maximizing talentof young employeesof female employees

168

Corporate Governance• The company is planning to propose the election of afemale director (Audit and Supervisory Committee
member) at the Ordinary General Meeting ofShareholders in June 2023.
• We will continue to consider securing the further
diversity of the Board of Directors again in future
based on dialogue with shareholders and investors,and discussions and proposals at meetings of theNomination and Compensation Committee.

17Forecast of Financial ResultsDividend

Revenue Forecast
Analysis of Operating Profit (Forecast)
Capital expenditures, Depreciation and amortization,
R&D costs (Forecast)Profit Improvement
Inventory Optimization
Production, Sales, Inventory (Forecast)
Change in basic policy regarding profit distribution
The repurchase of treasury shares
Cash Dividend

189FYE2024 Revenue Forecast
FYE2023

FYE2024

VarianceRevenue\764.7 billion \680.0 billion

Domestic\123.0 billion\122.0 billion-0.8%

Overseas\641.7 billion\558.0 billion-13.0%

83.9%

82.1%

-1.8pt\28.2 billion\55.0 billion+94.7%

3.7%

8.1%+4.4pt\11.7 billion\33.3 billion+184.5%\43.11\122.63

Overseas Revenue
Ratio

Operating Profit
Operating Profit
Ratio
Profit Attributable toOwners of theParentEPS-11.1%

19

Analysis of Operating Profit (Forecast)
Yen inbillions

2010Capital expenditures, Depreciation andamortization, R&D costs (Forecasts)
Yen inbillions

FYE2023Capital
expenditures
Depreciation andamortization
R&D costs

FYE2024

¥39.1

¥30.0

¥21.7

¥23.7

¥14.9

¥15.5

21

Profit Improvement
Initiatives FYE2024

Inventory optimization and Price revisions
Cost reduction activities

Medium to long-term initiatives

Improved profitability of cordless OPE
Expansion of the product lineup for professionals withhigh value added and highly uniqueness

2211

Inventory Optimization
yen in billion
600

month
Inventory Optimization Initiatives
moving into full progress

11.7months

1210400

About 9 months

20086
21.3

22.3

22.6

22.9

22.12

23.323.6

23.9

23.12

24.3

Inventory amount (Axis on the left side)
Inventory turnover (Axis on the right side)

23

Production, Sales, Inventory (Forecast)
10 thousands of unit

FYE2023
Production

FYE2024

Variance

2,635

2,570Japan

207

207

±0.0%

Europe509

602+18.1%

75

37-50.6%

1,743

1,610-7.6%

North America
Asia

-2.5%

Central and South America

101114+13.2%

External Procurement

202

212

+5.2%

Sales

3,636

3,200-12.0%

Inventory

2,038

1,620-20.5%

2412Change in basic policy regarding
profit distribution
Announced April 27, 2023

•BeforeAfter（underlined part changed)a minimum annual dividend of 10
yen per share• a minimum annual dividend of 20
yen per share• a consolidated dividend payout
ratio of 30% or more

• the total return ratio at 35% ormore• if there are special factors, thedividend amount will be
determined based on adjusted
basic earnings per share after
adding or subtracting such factors• if there are special factors, thedividend amount will be
determined based on adjusted
basic earnings per share after
adding or subtracting such factors*Applied from dividends for the term under review (FYE March 2023)
25

The repurchase of treasury shares

Announced April 27, 2023
“Notice Concerning Repurchase of Treasury Shares”(1) Class of shares to be repurchased

Common shares(2) Total number of shares to berepurchased

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

2613

Cash Dividends
Dividend Policy

Total return ratio at 35% or more

FYE2023
Profit Attributable to Owners of theParentEPSFYE2024¥11.7 billion¥33.3 billion¥43.11¥122.63

approx ¥3.9 billion-Annual Cash Dividend Per Share

21 yen（Note1）

Interim Dividend

10 yen

10 yenYear-end Dividend

11 yen（Note1）

48.7％（Note1）-¥10 billion（Note2）

48.7%

35% or greater

Special Circumstance（after tax）

Payout Ratio
The repurchase of treasury shares
Total return ratio（Note1）At a meeting of the Board of Directors to be held in April 2024, the amount of dividends will be determinedso that the total return ratio is at least 35%.
（Note2）Refer to “Notice Concerning Repurchase of Treasury Shares” announced April,27th 2023.

27

FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on Makita's own
projections and estimates in light of the information currently available. Due to therisks and uncertainties involved, actual results could vary materially from thecontent of these statements. Therefore, these statements should not beinterpreted as representation that such objectives will be achieved.

https://www.makita.biz/

28

14

（Reference）

Exchange Rate（Actual/Forecast）
Sensitivity

FYE2023

FYE2024

USD¥135.50

EURRMB

Operating Profit
Sensitivity*

Operating Profit
Sensitivity*(FYE2023 Result）(FYE2024 Forecast）¥130- ¥0.8 billion or less- ¥0.8 billion or more

¥140.99¥140

approx +¥1.0 billion

approx +¥1.0 billion¥19.75¥19 - ¥9.0 billion or more

- ¥8.0 billion or more

*Under the condition of ¥ 1 depreciation of the yen

2915