REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGFollowing is an English translation of the Internal control report filed under the Financial Instruments andExchange Act of Japan. This report is presented merely as supplemental information.
1. Matters Relating to the Basic Framework for Internal Control over Financial Reporting
Munetoshi Goto, President, Representative Director, and Yukihiro Otsu, Director, Corporate Officer, GeneralManager of Administration Headquarters, are responsible for designing and operating effective internal control overfinancial reporting of Makita Corporation, and have designed and operated internal control over financial reporting inaccordance with the basic framework for internal control set forth in "The Standards and Practice Standards forManagement Assessment and Audit of Internal Control Over Financial Reporting" published by the BusinessAccounting Council.
The internal control is designed to achieve its objectives to the extent reasonable through the effective function andcombination of its basic elements. Therefore, there is a possibility that misstatements may not be completely prevented
or detected by internal control over financial reporting.
2. Matters Relating to Scope of Assessment, the Assessment Date, and Assessment Procedures
The Assessment of internal control over financial reporting was performed as of March 31, 2022. The assessment wasperformed in accordance with assessment standards for internal control over financial reporting generally accepted inJapan.
In conducting this assessment, we evaluated internal controls which may have a material effect on the entire financial
reporting in a consolidation (in what follows “entity-level controls”) and based on the result of this assessment, weappropriately selected business processes to be evaluated, analyzed these selected business processes, identified key
controls that may have a material impact on the reliability of our financial reporting, and assessed the design and operationof these key controls. These procedures have allowed us to evaluate the effectiveness of its internal controls.
We determined the required scope of assessment of internal control over financial reporting for the Company, as wellas its consolidated subsidiaries, from the perspective of the materiality that may affect the reliability of our financial
reporting. The materiality that may affect the reliability of the financial reporting is determined taking into account themateriality of quantitative and qualitative impacts. We confirmed that we had reasonably determined the scope ofassessment of internal controls over business processes in light of the results of assessment of entity-level controls
conducted for the Company and its consolidated subsidiaries. We did not include those consolidated subsidiaries which
do not have any quantitatively or qualitatively material impact on the consolidated financial statement in the scope ofassessment of entity-level controls.
Regarding the scope of assessment of internal control over business processes, we accumulated business units indescending orders of total forecasting sales for this fiscal year, and those business units whose combined amount offorecasting sales reaches approximately two-thirds of total forecasting sales on a consolidated basis were selected as“significant business units.”
At the selected significant business units, we included, in the scope of assessment, those business processes leading tosales, accounts receivables and inventories, as significant accounts that may have a material impact on our businessobjectives. Furthermore, not only at selected significant business units, but also at other business units, we added to thescope of assessment, as business processes having greater materiality considering their impact on the financial
reporting, those business processes relating to greater likelihood of material misstatements and significant accounts
involving estimates and the management’s judgment, and those business processes relating to business or operation
dealing with high-risk transactions.
3. Matters Relating to the Result of the Assessment
As a result of the assessment above, we concluded that our internal control over financial reporting was effective as ofMarch 31, 2022.
4. Supplementary MattersNone
5. Special Notes
None

English Translation of "NAIBUTOSEI HOKOKUSHO" originally issued in Japanese