First Half of FYE2021
Operating Results(Six months ended September 30, 2020)
Munetoshi Goto
President, Representative Director

November 10, 2020

1

FYE2021 1H Results
Variance to FYE2020 1H

Revenue¥283.2 billion+ 16.3%

Domestic¥55.8 billion+ 10.4%

Overseas¥227.4 billion+ 17.8%Overseas revenue ratio: 80.3% (FYE2020 1H: 79.3%)
2

1

Revenue by Geographic Area
Yen inbillions

250

283.2
231.0

200

242.8
6.9
15.6
13.5
21.5

41.6

34.4

MidEast/Africa
Oceania

Central &SouthAmerica
Asia

105.5

100

4.3
14.3
12.9
19.636.3

35.0

150

243.5

7.6
15.4
13.9
20.4

4.3
19.2
12.6
18.8

130.9

107.5

98.6

NorthAmericaEurope5055.8

50.5

43.7

39.9

Japan0FYE18 1HFYE19 1H

FYE20 1H

FYE21 1H

3

Foreign Exchange Rate
FYE20 1H

FYE21 1H

USD

¥ 108.60¥ 106.93

Appreciation

EUR¥ 121.40¥ 121.34

Appreciation

RMB¥ 15.68¥ 15.26

1.5%

0.1%

2.7%

Appreciation
Weighted average change for all foreign currencies:
3.3% appreciated in the value of the yen

Effect on revenue: Decrease of ¥7.9 billion
42

Revenue Growth (Local Currency Basis)
Japan20%Japan

FYE2020 1H + 15.6%
FYE2020 2H +3.6%
FYE2021 1H + 10.4%

15%10%5%0%
FYE2019

FYE2020

2H

1H

FYE2021
2H

1H
5Revenue Growth (Local Currency Basis)
Europe+ 24.2%
Eastern Europe/Russia

25%

FYE2020 1H
FYE2020 2H
FYE2021 1H

20%
15%

Western Europe

10%

FYE2020 1H
FYE2020 2H
FYE2021 1H

5%0%+ 12.2%+12.6%+24.0%

FYE2019
2H

FYE2020
1H+ 6.4%+2.4%+24.3%

FYE20212H

1H63

Revenue Growth (Local Currency Basis)
North America, Asia
30%North America

20%10%

FYE2020 1H
FYE2020 2H
FYE2021 1H0%

Asia-10%

FYE20192HFYE2020
1H

FYE20212H

FYE2020 1H
FYE2020 2H
FYE2021 1H

1H-3.6 %+7.5%+23.3%

-1.9%
-3.8%
-2.8%
7

Revenue Growth (Local Currency Basis)
Central & South America, Oceania, Mid-East/Africa
Oceania50%

FYE2020 1H
FYE2020 2H
FYE2021 1H

25%+0.8%+4.1%+37.8%

Central & SouthAmerica

0%

FYE2020 1H
FYE2020 2H
FYE2021 1H

-25%

+0.9%
+6.1%
+25.6%

Mid-East/Africa-50%FYE2019
2H

FYE2020
1H

FYE2021
2H

1H

FYE2020 1H
FYE2020 2H
FYE2021 1H-41.6%
-6.7%
+2.0%
84

Outdoor Power Equipment (OPE)
Example of new products for this fiscal periodHigh durable / low noise /high power

Easy and quick cleaning
with Makita’s blower

Cordless Lawn Mower

Cordless Blower

9Lithium-ion Battery Products
Example of new products for this fiscal period
Cordless yet
powerfulCordless Power
Cutter

Cool down andwarm up anywhere
withMakita’s batteries

Cordless Coolerand Warmer

Cordless cleaners
help to improvecleaningefficiencies

Makita’s unique
technologies“Pressure-controlledfan jacket”

Cordless Upright
Vacuum Cleaner

Cordless FanJacket Series 105

Lithium-ion Battery Products
Makita’s unique technology“smart system” optimizes supplyof power and recharge system
Example of new products for this fiscal period

11Production Quantities byGeographic Area
10 thousandsof units

1,800

FYE21 1H
1,725

FYE20 1H
1,569

5452

FYE20 2H
1,303

Asia

53

1,200

Central &SouthAmerica

1,124
NorthAmerica

1,014
764Europe600

05151286

291

164

144

FYE201H2H

46368

Japan

135
FYE211H

126

Inventories
March 31, 2020

¥ 214.6 billion

September 30, 2020

¥ 210.3 billion

Decrease of inventories¥4.3 billion

Breakdown:
Decrease of inventories on hand

¥7.3 billion

Increase by translation into yen¥3.0 billion
13

Operating Profit, Cost of Sales,
SG&A
FYE20 1H

FYE21 1H

Variance toFYE20 1H

Revenue¥243.5 billion ¥283.2 billion+ 16.3%

Cost of Sales- ¥160.0 billion - ¥191.7 billion+ 19.9%

Cost of Sales Ratio

SG&A Expenses- 65.7%- 67.7% Up 2.0 points- ¥51.2 billion - ¥53.3 billion+ 4.1%

SG&A Ratio- 21.0%- 18.8%Down 2.2points

Operating Profit¥32.4 billion¥38.2 billion+ 17.7%

Operating Profit Ratio

13.3%

13.5%

Up
140.2 points

7Analysis of Operating Profit
Yen inbillions

Sales
VolumeSG&A Exchange
Rate+16.1 -3.3

-2.5 Cost up Others-0.5 -4.0

38.2

32.4

FYE21 1H

FYE20 1H

15

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

FYE20 1H

FYE21 1H

Variance toFYE20 1H

Financial Income(Expenses)¥2.1 billion¥0.1 billion- ¥2.0 billion

Profit Before
Income Taxes¥34.5 billion¥38.3 billion+ 11.0%

Profit Attributable toOwners of theParent¥25.0 billion¥27.1 billion+ 8.7%¥92.01¥99.96+ 8.6%EPS

168

Capital Expenditure, Depreciation, R&D Cost
Capital Expenditure(Yen in billions)
FYE19 1H

FYE2021 1H Main Capital Expenditure
Japan： Distribution warehouse (Okazaki plant, Saitama)
Chinese Plant： Construction of new plant building

12.1

FYE20 1H

16.8

23.4

FYE21 1H

R&D Cost

Depreciation(Yen in billions)(Yen in billions)
FYE19 1H
FYE20 1H
FYE21 1HFYE19 1H

5.6
6.1
6.4

5.4

FYE20 1H
FYE21 1H

5.7
6.3
17

Makita’s Commitments
 Moving forward as a manufacturer of cordlessproducts
 Expand sales, after sales services anddistribution networks

189Makita’s Commitments

ESG

Moving forward as a manufacturer of cordless products
Power tools

Outdoor Power Equipment

Construction sites／
Outdoor／emergency

Cleaning

19

Makita’s commitments ESG
Moving forward as a manufacturer of cordless products
Growth through thecontribution to solvingsocial issues

Environmental issues

NoiseDecarbonization

Labor shortage

Plastic garbage

Deplasticization

Cordlessproducts

Wide and strong
distribution
network 2010ESG

Makita’s Commitments

Expansion of sales / service and distribution bases
Main bases newly established in the first half
AreaCityJapan

Isahaya (Nagasaki)* 4 new sales offices openedin October

EuropeHamburg (Germany)
Antwerp (Belgium)

North
America

Reno (U.S.)

Oceania

Wellington (New Zealand)
Makita U.S.A. Western branch (Reno)
21

Makita’s Commitments

ESG

Expansion of sales / service and distribution bases
116 sales offices (2020/3) ➡ 121 sales offices (2020/10)
Sales offices newly established in the first halfPrefecture inJapan

Sales office

NagasakiIsahaya sales officeNiigata

Joetsu sales office

Ehime

Shikokuchuo sales
officeOita

Nakatsu sales office

Kanagawa

Odawara sales office

Isahaya sales office

Shikokuchuo sales office2211

Makita’s Commitments

ESG

Expansion of sales / service and distribution bases
Advantages of expanding bases
Vertically integrated system fromsales, repair services todistribution each region andcountry“Customer andcommunity oriented”
Achieving sustainablesocietyEfforts to expand sales of cordless OPE
 Expansion of distribution warehouses with an eye on the handlingof large products
 Establishment of bases specializing in OPE
23

Forecast of Financial Results
Dividend

Revenue Forecast
Operating Profit (forecast) Analysis
Financial Forecast
Production Plan
Capital Expenditures, Depreciation, R&D Cost
Dividend

24

12

FYE2021 Revenue Forecast
Variance to FYE2020

Revenue¥530.0 billion+ 7.6%

Domestic¥106.0 billion+ 5.3%

Overseas¥424.0 billion+ 8.2%

Overseas revenue ratio: 80.0% (FYE2020: 79.6%)
Assumed foreign exchange rates

2HFYUSD

EuroRMB

¥105
¥106

¥120
¥121

¥15.5
¥15.4
25

FYE2021 Revenue Forecastby Geographic Area
Yen inbillions

500
400

490.6

530.0

492.6

10.0
34.0
23.0
37.0

13.8
30.2
27.8
40.9

10.0
28.4
26.0
39.0

72.5

72.3

213.3

216.2

82.0

300
200

MidEast/Africa
Oceania
Central &SouthAmericaAsia

238.0 North

America
Europe100
92.1

100.7

106.0

Japan0FYE2019

FYE2020

FYE2021 (Forecast)
2613

Analysis of Operating Profit(Forecast)
Sales Exchange
Volume Rate

Yen inbillions+19.0 -7.8

SG&A-4.3 Cost up
Others-0.1 -3.3

67.5

64.0

FYE2021

FYE2020(Forecast)

27

FYE2021 Financial Forecast
FYE2020
Revenue

FYE2021

Variance¥492.6 billion ¥530.0 billion+ 7.6%

Operating profit¥64.0 billion¥67.5 billion+ 5.4%

Profit before
income taxes¥66.0 billion¥67.5 billion+ 2.3%

Profit attributable toowners of theparent¥47.7 billion¥48.0 billion+ 0.6%¥175.80¥176.78-EPS

28

14

Production Plan
10 thousands of units

Plan for FYE2021
3,780

4,000

125

3,058
3,0002,872

109

Central &SouthAmericaAsia1072,420

2,000

2,013

1,000134102512577

290

3080

North
America

1,778

FYE2019

FYE2020115840EuropeJapan280
FYE2021(Forecast)

29

Capital Expenditure, Depreciation, R&D Cost
Capital Expenditure
1H

FYE19
FYE20
FYE21

(Yen in billions)

FY

12.1

23.9

16.8

FYE2021:¥58.0 billion (Forecast)

Construction of a new plant in China anddistribution warehouses in Japan and overseas

44.4

23.4

58.0（Forecast）

R&D Cost

Depreciation
1H

FYE19

5.6

FYE20

6.1

FYE21

6.4

FY(Yen in billions)
11.3
12.1
14.0（Forecast）

1HFY(Yen in billions)

FYE19

5.411.3

FYE20

5.7

11.6

FYE216.3

13.2（Forecast）

3015

Cash Dividends
Dividend Policy

Dividend Payout Ratio: 30% or greater
FYE2020

FYE2021

Profit attributable to ownersof the parent¥ 47.7billion¥48.0 billion(Forecast)

EPS
Special Circumstance
Annual Cash Dividend
Per Share
Interim Dividend¥175.80¥176.78(Forecast)--¥53(Note)¥10¥10Year-end Dividend¥43(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 theparent.

31

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 mainly
active, 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.

32

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