First Half of FYE2024
Operating Results(Six months ended September 30, 2023)
Munetoshi Goto
President, Representative Director

November 9, 2023
1

FYE2024 1H Results
year-on-year

Revenue¥369.7 billion- 5.5%

Domestic¥61.5 billion- 0.6%

Overseas¥308.2 billion- 6.5%

Overseas revenue ratio: 83.4%(FYE2023 : 83.9%)

Effective Exchange Rate
Weighted average change for all foreign currencies
4.4% depreciated in the value of the yen
Effect on revenue: Increase of ¥12.9 billion
21

Revenue Growth (Local Currency Basis)
JapanJapanFYE2023 1H +2.0%
FYE2023 2H +6.5%
FYE2024 1H - 0.6%

10%
5%0%-5%FYE2022

FYE2023

2H

1H

FYE2024
2H

1H

3Revenue Growth (Local Currency Basis)- 5.2%

EuropeWestern Europe
FYE2023 1H - 14.1%
FYE2023 2H - 12.3%
FYE2024 1H - 2.9%

40%
30%

Eastern Europe

FYE2023 1H － 1.1%
FYE2023 2H － 11.1%
FYE2024 1H － 8.1%

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

FYE20222H

FYE2023
1H

2H

FYE2024
1H

42

Revenue Growth (Local Currency Basis)
North America,
Asia

North America
FYE2023 1H
FYE2023 2H
FYE2024 1H- 1.3%- 20.3%- 23.1%Asia

FYE2023 1H
FYE2023 2H
FYE2024 1H+ 10.7%- 19.2%- 24.7%20%
10%0%-10%-20%-30%-40%

FYE20222H

FYE2023
1H

FYE2024

2H

1H
5Revenue Growth (Local Currency Basis)
Central & South America, Oceania, Mid-East/Africa
Central & SouthAmerica
FYE2023 1H
FYE2023 2H
FYE2024 1HOceania

FYE2023 1H
FYE2023 2H
FYE2024 1H- 3.4%- 1.8%- 6.6%+ 11.2%- 4.9%- 5.7%

Mid-East/Africa

FYE2023 1H - 11.7%
FYE2023 2H - 10.6%
FYE2024 1H + 1.4%

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

FYE20222H

FYE2023
1H2H

FYE2024
1H63

Outdoor Power Equipment (OPE)OPE Total
Year on year (yen)Year on year (Localcurrency)

Cordless Pruning Saw DUC101

Cordless OPE

Although sales were sluggish overall due toYear on year (yen)the effect of extreme weather and otherYear on year (Localcurrency)

factors, sales expanded for cordless outdoor- 5%- 9％+８%+ 3%

power equipment, mainly for new products
and the 40Vmax Lithium-ion Battery series.
7Cordless Products
Cordless Products

Cordless Combination Hammer

Year on year (yen)- 3%Year on year (Localcurrency)- 9％

Proportion of cordlessproducts in sales overall

54％

HR010G

Sales generally sluggish due to the impact of the weak building andconstruction market. However, sales of the 40Vmax Lithium-ion Battery
series continue to expand.

84

Production, Sales, Inventory
Million unit

2020 1H

2021 1H

2022 1H

2023 1H

2024 1H

year-on-year

15.69

17.25

25.45

15.60

11.77

-24.6%

Japan1.64

1.35

1.91

1.19

1.01

-14.7%

Europe

2.86

3.68

5.90

3.31

2.81

-15.3%

North America

0.51

0.46

0.79

0.46

0.22-52.1%

Asia

10.14

11.24

15.78

10.11

7.21

-28.7%

Central andSouth America

0.54

0.52

1.07

0.53

0.52

-0.9%

External
Procurement

0.90

1.29

1.97

1.49

0.82

-45.1%

Sales

16.01

18.47

22.28

19.13

15.86

-17.1%

Inventory

16.70

14.44

23.04

26.34

*17.11-35.0%

Production*-16.0% compared to 20.38 million units at the end of March 2023
9Operating profit, Cost of sales, SG&A
FYE2023FYE2024

year-on-1H

1HyearRevenue¥391.3 billion¥369.7 billion-5.5%

Cost of Sales¥288.6 billion¥257.9 billion-10.7%

73.8%

69.8%

¥80.8 billion¥80.0 billion

20.6%

21.6%

¥21.9 billion¥31.8 billion

5.6%

8.6%

Cost of Sales ratio

SG&A Expenses
SG&A ratio

Operating profit

Operatingprofit ratio

down
4.0points-0.9%
up
1.0points+44.9%
up
3.0points
105FYE2024 1H
Analysis of Operating Profit
Yen inbillions+5.6+5.7+4.0+3.5

31.8
-8.9

21.9

11

Financial Income (Expenses),Profit Before Income Taxes,
Profit Attributable to Owners of the Parent, EPS
FYE2023

FYE2024

year-on-1H1Hyear(¥3.7 billion)(¥1.8 billion)¥1.9 billion¥18.2 billion¥30.0 billion+64.7%¥11.1 billion¥20.8 billion+87.9%¥40.80¥77.11

Financial
Income(Expenses)

Profit before
Income Tax
Profitattibutable toowners of theparentEPS

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

Capital Expenditure highlights during
this period

Yen in billions

28.2

FYE2022 1H

23.0

FYE2023 1H
FYE2024 1H

11.0

Depreciation and amortization
FYE2022 1H

FYE2023 1H

FYE2024 1H

Japan : Reconstruction of Okazaki
warehouse
Romania : Construction of a warehouse
Estonia︓Construction of a new office

Yen in billions

8.1
9.9
12.3

R&D costs

Yen in billions

FYE2022 1H

6.9

FYE2023 1H

7.5

FYE2024 1H

7.3
13Makita’s Commitments
Sustainability
Environmental support (carbon neutral)Supporting SDGs

Efforts to reduce GHG emissions
Promoting the use of renewable energy allover the world

Okazaki plant

Estonia147

Forecast of Financial Results
Dividend


Revenue Forecast
Analysis of Operating Profit (Forecast)
Capital expenditures, Depreciation and amortization,R&D costs (Forecast)Profit Improvement
Inventory Optimization
Production, Sales, Inventory (Forecast)Profit distribution

15

FYE2024 Revenue Forecast
year-on-year

FYE2023

FYE2024

Revenue¥764.7 billion¥680.0 billion-11.1%

Domestic¥123.0 billion¥120.0 billion-2.4%

Overseas¥641.7 billion¥560.0 billion-12.7%

Overseas revenueratio

83.9%

82.4%

-1.5ptOperating profit¥28.2 billion¥55.0 billion+94.7%

Operating profit ratio

3.7%

8.1%+4.4pt

Profit attributable toowners of the parent¥11.7 billion¥33.3 billion+184.5%¥43.11¥123.36

EPS

168

Analysis of Operating Profit (Forecast)
Yen inbillions

+28.8

+13.2

+6.5

+1.4

55.0
-23.1

28.2

17

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

FYE2023

FYE2024

Capitalexpenditures
Depreciation andamortization¥39.1 billion¥30.0 billion¥21.7 billion¥23.7 billion

R&D costs¥14.9 billion¥15.5 billion

189

Profit Improvement
Initiatives FYE2024

Result•Inventory optimization
and Price revisions••

Cost reduction activities

Inventory reductions generally ontrack
Implementation of price revisions
in Japan, the United States, andmajor European countries
Elimination of waste in all
departments and promotion ofoperational efficiency

Medium to long-term
initiatives
Improved profitability ofcordless OPE
Expansion of the high value
added, unique productlineup for professionals andattracting new customers
and distributors

19

Battery Powered Backpack Blower
UB002CInventory Optimization
yen in billion

11.7 months

600month

Inventory Optimization Initiativesmoving into full progress

1210.2 months
10400

About 9 months
82006
21.3

22.3

22.6

22.9

22.12

23.3

23.6

23.9

23.12

24.3

Inventory amount (Axis on the left side)
Inventory turnover (Axis on the right side)2010

Production, Sales, Inventory (Forecast)Million unit

FYE2023

FYE2024 year-on-year

26.35

23.00

-12.7%

Japan

2.07

1.92

-7.3%

Europe5.09

5.84+14.6%

Production

North America

0.75

0.54

-27.9%

Asia

17.43

13.60

-22.0%

Central and South America

1.01

1.10+9.2%

External procurement

2.02

1.52

-24.6%

Sales36.3629.50-18.9%

Inventory

20.38

15.40

-24.4%

21

Profit distribution
Dividend Policy

Total return ratio at 35% or more
FYE2024

FYE2023
Profit attributable to owners of theparentEPS¥11.7 billion¥33.3 billion¥43.11¥123.36

Special Circumstance（after tax）

approx ¥3.9 billion-

Annual Cash Dividend Per Share¥21（Note1）

Interim Dividend¥10¥10Year-end Dividend¥11（Note1）

48.7％（Note1）-¥10 billion（Note2）

48.7%

35% or more

Payout Ratio
The repurchase of treasury shares

Total return ratio（Note 1）The Board of directors will determine dividend plan in accordance with basic policy

regarding profit distribution at Board of Directorsʼ meeting scheduled to be held in April 2024
（Note 2）Refer to “Notice Concerning Repurchase of Treasury Shares” released on April 27,
2023 and “Notice Concerning Status and Completion of Purchase of Treasury Shares” releasedon July 10, 2023

2211

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/

23（Reference）

Exchange Rate（Actual/Forecast）
Sensitivity（yen）*Under the condition of ¥ 1 depreciation of the yen

Operating
ProfitSensitivity*(FYE2024 1HResult）

Operating
ProfitSensitivity*(FYE2024
Forecast）

FYE
2023
１H

FYE
2023

FYE
2024
1H

USD

134.03135.50141.06141- ¥0.3 billion - ¥0.3 billion
or moreor more

EUR

138.76140.99153.45149approx +¥0.8 billion+¥0.8 billion
or less

RMB

19.89

19.75

19.75

19.9

- ¥10 billion
or less

FYE
2024(Forecast)- ¥9 billion
or less
2412