FYE2020
Operating Results(Fiscal Year ended March 31, 2020)

Munetoshi Goto
President, Representative Director

1

FYE2020 Results
Variance toFYE2019

Revenue¥ 492.6 billion+ 0.4%

Domestic¥ 100.7 billion+ 9.3%

Overseas¥ 391.9billion- 1.6%

Overseas revenue ratio: 79.6% (FYE2019: 81.2%)
21

Revenue by Geographic Area
Yen inbillions
477.3

500

415.0
400
300

490.6
15.5
31.3
27.9
44.1

17.2
25.1
23.1
40.1

73.9

492.6
13.8
30.2
27.8
40.9

10.0
28.4
26.0
39.0

72.5

72.3

66.1

MidEast/AfricaOceania

Central &SouthAmerica
Asia

213.3

202.0

200

216.2
NorthAmerica

169.0

Europe

100
100.7

92.1

82.6

74.4

Japan0
FYE17

FYE18

FYE19

FYE203Foreign Exchange Rate
FYE2019

FYE2020

Variance

USD¥ 110.92¥ 108.70

Appreciation

EUR¥ 128.44¥ 120.81

Appreciation

RMB¥ 16.54¥ 15.60

2.0%

5.9%

5.7%

Appreciation
Weighted average change for all foreign currencies:
4.9% appreciated in the value of the yen

Effect on revenue: Decrease of ¥20.3 billion
42

Revenue Growth (Local Currency Basis)
Japan
20%
15%Japan10%

FYE2019
FYE20205%+ 11.6%+ 9.3%0%-5%

FYE2019
1H

FYE20202H

1H

2H

5Revenue Growth (Local Currency Basis)
Europe+7.2%

Eastern Europe/Russia

15%

10%

FYE2019 + 10.6%
FYE2020 + 12.4%

5%

Western Europe
FYE2019
FYE2020

0%FYE2019-5%

1H+ 6.2%+ 4.3%

FYE2020
2H

1H

2H
63

Revenue Growth (Local Currency Basis)
North America, Asia
10%

North America
5%

FYE2019 -1.6%
FYE2020 +1.9%

0%

Asia

FYE2019 -6.2%
FYE2020 - 2.8%

-5%FYE2019-10%1H

FYE2020
2H

1H

2H
7Revenue Growth (Local Currency Basis)
Central & South America, Oceania, Mid-East/Africa
Central & SouthAmerica

20%FYE2019
FYE2020

10%0%Oceania-10%FYE2019
FYE2020-20%-30%+ 12.9%+ 3.5%+ 2.2%+ 2.4%

Mid-East/Africa-40%-50%

FYE2019
1H

FYE2019
FYE2020

FYE20202H

1H

2H- 10.8%- 25.9%84

Outdoor Power Equipment (OPE)
Examples of New Products introduced in this fiscal year
Cordless Hedge Trimmer

255mm Cordless Grass Trimmer Series•High power, low noise and lessvibration••

Delivers the similar performance
demanded for 30mL Engine GrassTrimmer

Lightest weight in the classand delivers high power•Surpassed the performance
demanded for 22mL Engine
Hedge Trimmers

Cordless Pole Hedge Trimmer•

Light weight, low noise, highpower•

Delivers higher performancecompared with engine products•

Enables to use machine
comfortably in an upright standingposture

9Lithium-ion Battery Products
Examples of New Products introduced in this fiscal year

40Vmax seriesHigh power leading to Next-generation

Cordless TV with Radio
Excellent wave receiving
sensitivity and large 10 inch
liquid crystal panel

Cordless Impact Wrench
Enables easy fastening withhigh torque105

Production Quantities byGeographic Area
10 thousandsof units
3,058

3,111
3,000

105

2,643

2,872
109
107

69

2,000

2,013

2,179

1,778

1,874

0270

FYE2017

NorthAmerica
Europe

1,000
132
298

Central &SouthAmerica
Asia

134

102

414

512

577

289

290

308

124

FYE2018

FYE2019

FYE2020

Japan

11Inventories

March 31, 2019￥219.9 billion

March 31, 2020

¥ 214.6 billion

Decrease of Inventories¥ 5.3 billion

Increase of inventories on hand

¥ 9.1 billion

Decrease by translation into yen¥ 14.4 billion
126

Operating profit
Cost of sales
Sales general and administration expense
FYE2019

FYE2020

Revenue¥ 490.6 billion¥ 492.6 billion+0.4%

Cost of Sales¥ 313.4 billion¥ 323.8 billion+3.3%

Cost of Sales Ratio

63.9%

65.7%

UP
1.8 points

SG&A Expenses¥ 98.9 billion¥ 104.8 billion

+5.9%

20.1%

21.3%

Up
1.2 points¥ 78.3billion¥ 64.0 billion-18.2%

16.0%

13.0%

Down
3.0 points
13SG&A Expenses Ratio

Operating Profit
Operating Profit Ratio

Variance

Analysis of Operating Profit
Yen inbillions

Sales
Volume SG&A+7.7 -9.7 Exchange
Rate-4.9 Cost
-1.5 Others-5.978.3
64.0

FYE2019

FYE2020147Financial Income,
Profit Before Income Taxes, Profit
Attributable to Owners of the Parent, EPS
FYE2019

FYE2020

Variance

FinancialIncome¥1.6 billion¥2.0 billion¥0.4 billion

Profit Before
Income Taxes¥79.9 billion¥66.0 billion- 17.4%

ProfitAttributable toOwners of theParent¥55.8 billion¥47.7 billion- 14.4%¥205.37¥175.80- 14.4%EPS

15

Capital Expenditure,
Depreciation and Amortization,
R&D Cost
Capital Expenditure
FYE18(Yen in billions)15.023.9FYE19

Major capital investment in FYE 2020
Okazaki Plant: Distribution warehouse (building)Romania Plant: Additional factory building (land / building)
China Plant: Additional factory building (land / building)
U.S.: Distribution warehouse (land / building)

44.4

FYE20

Depreciation and Amortization

R&D Cost(Yen in billions)(Yen in billions)

FYE18

10.8

FYE18

10.9

FYE19

11.3

FYE19

11.3

FYE20

12.1

FYE20

11.6
168

Makita’s Commitments• Moving forward as a manufacturer ofcordless products• Expand sales, after sales services anddistribution networks

17

Makita’s Commitments
Moving forward as a manufacturer of cordless products

Cordless Angle Grinder

Cordless Impact WrenchHigh voltage system
Introduction of 40Vmax series
achieving higher power

189Makita’s Commitments
Moving forward as a manufacturer of cordless products
Supply power with four
18V batteries
Portable Battery Pack

High capacity system

Enabling operators towork longer hours
19

Makita’s Commitments
Moving forward as a manufacturer of cordless products

Cordless
CoolingBox

Cordless HeatedBlanket series

Cordless Fan Jacketseries

CordlessTV with RadioSeries of products also used at thetime of disaster or outdoor activities
Cordless LED Work Light2010

Makita’s Commitments
Moving forward as a manufacturer of cordless products
Cordless Sprayers

Backpack Vacuum Cleaner

Robotic Cleaner

Cordless Stick
Vacuum Cleaner

Cultivate commercial cleaning market
Cordless Wet/Dry
Vacuum Cleaner

21

Makita’s Commitments
Moving forward as a manufacturer of cordless products
Marketing and Advertising“Hachimura Rap” movie clip
Advertising for TV100
Cordless TV with Radio“Robot x Rui” movies clip
Advertising for 40Vmax series

2211

Makita’s Commitments

Lead to Cordlessfor wide range of products

Expand the company which does notrely only on single area of businessResolve social challenges such asenvironmental issues

Further initiatives
Reduction of single use plastics used to package our products
we will further shift to more environment-friendly materials,
including paper.

23

Makita’s Commitments
Expansion of sales, after sales services and distribution networks

List of new sites (including logistics)
Area

CityJapan

Isahaya （Nagasaki）

EuropeBerlin（Germany）
Utrecht（Netherland）
Minsk（Belarus）※ Open in April 2020

North America

Expansion and establishment oflogistics bases looking at anincrease in the handling of largesized products

Dallas (U.S.)※ Expansion of warehouse

Asia

Vadodara, etc.（India）
Yunlin, etc.（Taiwan）
Hanoi（Vietnam）

Central &Antofagasta（Chile）
South America
Oceania

Christchurch（New Zealand）

Improve customer satisfaction
through rapid logistics services
2412

Makita’s Commitments
Expansion of sales, after sales services and distribution networks

Advantages of expanding networks
 Speedy repair services andlogistics
 Increase opportunities forpotential customers toexperience Makita products Grasp market needs

Increase fans of Makita bystrengthening local
community- and customers
based sales and after sales
services Deliver speedy sales support
to dealers
25

FYE2021 Forecast
FYE2021 Forecast ： TBD
We will announce the financial forecast as soon as possible.

26

13

COVID-19
A decline in tool demand may lead to a decrease in revenue
and profits.
Covid-19 outbreak especially in Europe, Japan, and North
America, where sales ratios are high, could lead to asignificant impact on performance.
If Covid-19 spreads again in China where the productionratio is high and the suppliers are concentrated.
Possibly lead to a significant impact on the Group's
production and sales activities.

27

Dividend
Dividend Policy

Dividend Payout Ratio: 30% or greater
FYE2020

Profit attributable toowners of the parent

FYE2021(Forecast)¥47.7 billion

TBD

EPS
Special Circumstance
Annual Cash Dividend
Per Share
Interim Dividend¥175.80TBD――

53 yenTBD（Note）

10 yen

10 yenYear-end Dividend

43 yenTBD（Note）

Payout Ratio

30.1%

30% or greater

Note: In April 2021, the Board of Directors plans to propose a dividend equivalent to at least 30% of profit
attributable to owners of the parent.

28

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https://www.makita.biz/
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on Makita's own
projections and estimates. The power tools market, where Makita is mainlyactive, is subject to the effects of rapid shifts in economic conditions, demandfor housing, currency exchange rates, changes in competitiveness, and otherfactors. Due to the risks and uncertainties involved, actual results could differ
substantially from the content of these statements. Therefore, these statements
should not be interpreted as representation that such objectives will beachieved.

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