Annual Report
2019Year Ended March 31, 2019Live Green&Grow Strong

Bringing invaluable tools to
people and their living
environments
Makita Corporation was founded in Nagoya (Aichi prefecture) in 1915 as an electric motor sales and repair
company. In 1958, it became the ﬁrst company in Japan to manufacture and sell portable electric planers.
Over the subsequent 10 years, Makita built a business network in Japan, some 80 locations strong, based on the philosophyof moving closer to our customers. In 1970, we established our ﬁrst overseas subsidiary in the USA. And, whether in Japan oroverseas, striving for robust after-sales services has allowed us to earn the trust of craftspeople who rely on power tools.
In 2015, we celebrated our 100th anniversary and currently operate 116 sales and service bases in Japan, augmented
by some 50 overseas bases, while selling products in approximately 170 countries around the world. Forging ahead
toward our next 100 years of growth, Makita will strive to capture and maintain worldwide market leadership in power
tools in construction markets around the globe. As we do so, we will pursue our mission of “Conversion fromengine-powered to battery-powered products,” strengthen initiatives in our battery-powered gardening equipment
business, and continue to strive for growth by solving social issues.

1

MAKITA Annual Report 2019

Fiscal 2019 Highlights & Contents

Fiscal 2019 Highlights

Operating Profit

Revenue¥

490,578

Operating Profit Ratio

78,30516.0

Overseas Revenue Ratio

Number of Employees(Consolidated)

Production Output

81.2

16,424R&D Costs

Capital Expenditures

Mil.

¥

%

¥

11,258

Shareof Revenue

Mil.

%

30.58
ROE

23,867

9.9

61.2%

Japan

Power Tools

Gardening Equipment,
Household andOther Products

22.0%

Parts,
Repairs
and Accessories

16.8%

Mil.

¥

Mil.(units)

Mil.

%

18.8%
43.5%
North America
14.8%
Asia (excluding Japan)
8.3%
Central and South America 5.7%
Oceania
6.1%
The Middle East and Africa 2.8%
EuropeRevenueby Region

Contents
To Our Stakeholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Financial Data

Interview with Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

10-Year Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Special Feature:
Expanding Global Sales of cordless OPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Stock Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

ESG Management

Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Social . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2

MAKITA Annual Report 2019

To Our Stakeholders

Munetoshi Goto

Masahiko Goto

President,
Representative Director

Chairman,
Representative Director

Makita will continue striving for growth bysolving social issues as we take on thechallenges of the next 100 years.
Today’s world is one of great ﬂuctuation in global politics
and the economic climate, which demands that companies
have the ability to ﬂexibly respond to change. In order tofocus on customer and market shifts in each part of
the world, and to reﬂect those shifts in our products andservices, Makita is building a global network for production,marketing, and after-sales services. We will continue
furthering our ability to handle changes by fully leveraging
our strength born from Makita’s philosophy emphasizing
on-site focus.
As a global supplier of a comprehensive range of tools
for creating comfortable homes and living environments,

3

we know that we must embrace challenges in new ﬁelds
that will allow us to continue to succeed 100 years fromnow. As a result,Makita is currently undergoing a second
renaissance in which we strengthen not only our power
tool business but also our gardening equipment businesswhile building a foundation for achieving growth inperpetuity. Makita seeks to be a company that exists inharmony with society as we pursue growth by solvingsocial issues such as preservation of the global
environment and improvement of customers’ workplaceenvironments.

Corporate Slogan / Corporate Attitude

Long-term Target

Strong Company
Makita has set itself the goal of contributing to the creation of a sustainable society and consolidating astrong position in the industry worldwide as a global supplier of a comprehensive range of tools for creating
comfortable homes and living environments, including cordless power tools, battery-operated outdoor
power equipment, and pneumatic tools.

Management Policy / Quality Policy
1. Makita strives to exist in harmony with society (a company that observes laws and regulations, acts ethically andnever allows intervention of the anti-social organizations).
2. Makita values its customers (a market-driven company).
3. Makita is managed in a consistent and proactive manner (a company that strives to exist in perpetuity by adhering
to a sound proﬁt structure).
4. Valuing a stalwart corporate culture, Makita encourages each individual to perform to his or her highest level(a happy company).

Fundamental Policy Regarding Product Safety
Makita has established a system for providing safe products to our customers (users and consumers), and ourwhole company is dedicated to ensuring that customers can enjoy peace-of-mind when using our products.
In the unlikely event of a major unforeseen product accident, we will work to speedily and accurately gather information
regarding the accident, and to disclose that to customers and all related parties, both inside and outside the company.

Code of Ethics
1. Honest and ethical conduct; no conﬂict of interest
2. Compliance with applicable laws and regulations
3. Full, fair, timely and understandable disclosure

4. Accountability for adhering to this Code
5. Enforcement mechanisms
6. Approval for waiver of this Code

Code of Conduct
1. Am I acting in accordance with ethical guidelines? (Would I be unashamed in front of anyone?)
2. Am I looking at things from the customer's point of view rather than the company's point of view? (Am I leaning
more towards the customer than my supervisor or my colleagues?)
3. Am I acting and thinking independently and taking on challenges? (Am I caught up in past experiences andsuccesses?)
4. Am I persistently improving and innovating technology? (Is there a reason we have to do it this way?)
5. When I am on site, do I respect the opinions there? (Do I accurately gather information and communicate
adequately?)

44

MAKITA Annual Report 2019

Interview with Management

Implementing
investment on thelargest scale to date.
We will achieve solid
growth from a long-term
perspective.

Munetoshi Goto
President,
Representative Director5is your assessment of
Q Whatperformance in ﬁscal 2019?
achieved the highest
A We
revenue in our history.

are you focusing on from an
Q What
ESG perspective?
are developing andA We
recommending products that

Revenue came to ¥490.6 billion, up 2.8% year on
year, in ﬁscal 2019, ended March 31, 2019, which wasa year of record numbers for Makita both inside andoutside Japan. While operating proﬁt declined slightly
year on year, to ¥78.3 billion, it was still the second
highest in our history.
Domestically, construction demand rose ahead ofTokyo’s hosting of the Olympic Games, and sales
charted a steady path. Looking overseas, the problemof labor shortages continued in many regions, while
our products were highly praised for their convenience.
Our new lithium-ion battery products and gardening
equipment—two categories of particular focus—were
well received in various markets. Makita saw substantial
results from a steady increase in sales in Europe and in
emerging markets in Central and South America.
Additionally, we carried out record-high capital
expenditures of ¥23.9 billion in ﬁscal 2019, as we moveto expand future supply capacity. We also proceededwith consistent preparations to meet robust demand ineach market, including strengthening production
capacity at our plants in China and Romania.
Furthermore, we enhanced our platforms closely alignedwith local bases inside and outside Japan, including
building out sales and service bases.
At the same time, factors that squeezed operating
proﬁt included an increase in employee numbers as wetarget growth, as well as fortiﬁed advertising campaigns,
a strengthening yen, and a surge in raw material costs.
In order to grow steadily from a long-term perspective,
we feel that it is necessary to solidly confront thesefactors, expand our sales and service networks going
forward, and proactively streamline stafﬁng andoperator-less systems at production bases.

Revenue (Yen in millions)contribute to solving social
challenges.
At present, labor shortages are an acute problem inmany regions, be they developed or emerging countries.
First, Makita must consistently develop products thatstreamline tasks that have been conventionallyperformed by multiple workers—making them tasks
that a single person can perform—as we create
products that also improve productivity, shorten work
hours, and improve health and safety for laborers. On
top of this, I feel that it is crucial to respond quickly when
product issues arise, as we continue to build logistics
and service frameworks that get Makita products into
customers’ hands. By meeting these societal andconsumer needs, we are contributing to solving thesocial issue of labor shortages.
Moreover, as myriad global disasters occurred in2018, we received feedback from customers sayingthat Makita’s battery-powered lights and radios were
extremely instrumental. Consequently, from February
2019, we have been selling these items as part ofemergency supply kits. Makita has traditionally
maintained a deep commitment to “always being on
the support side in times of disaster,” so as we
receive progress reports from the actual disaster siteof how we supported the customers and business
partners in need. Being of service to our partners,
especially during difﬁcult times, is Makita’s commitment.
Going forward, we will continue endeavoring to solve
long-term social issues and pursue operations alignedwith society and customers, so that we can respondto the disasters that may occur and the customer
concerns that may arise.

Operating Proﬁt (Yen in millions)

490,578

500,000

78,30580,00060,000400,000

40,000300,000

20,000003/20153/20163/20173/20183/2019 （FY）

3/20153/20163/20173/20183/2019 （FY）

6

MAKITA Annual Report 2019

Interview with Management

Additionally, since people are the wellspring of Makita’s
corporate growth, we value our people by emphasizing“a stalwart corporate culture, encouraging all individuals
to perform to their highest level.” Given that some 80%of the Makita Group’s employees are of non-Japanesenationality, we have had long-standing respect fordiversity and have tried to localize our businesses.
Through this emphasis on local operations, we haveestablished a structure that brings value to markets,
while respecting each region’s culture and customs.
Currently, we have three non-Japanese employees
serving as corporate ofﬁcers.
In terms of corporate governance, we haveappointed two independent Outside Directors andthree independent Outside Audit & Supervisory Board
Members who provide timely input to the Board of
Directors and help ensure oversight of management.
In addition to internal Directors, independent Outside
Audit & Supervisory Board Members visit overseas
subsidiaries to perform audits and maintain a soundmanagement structure Group-wide.
With regard to preventing corruption, we haveestablished a “Code of Ethics” and “Guidelines to theCode of Ethics for Makita,” which stipulate standards
for Director and employee conduct. Throughout theCompany, we are promoting ethical conduct,prohibitions against conﬂicts of interest, compliance with
relevant laws and regulations, appropriate information
disclosure, and respect for human rights, which includes
offering ethics education once or more per year.

are your main initiatives for
Q Whatﬁscal 2020
will pursue development,
A We
production capacity

enhancements, and service
improvements that intuit
customer needs.
On the product development side, we will continue
expanding our range of cordless offerings. We arefocusing on developing gardening equipment as thesecond pillar of our business after power tools. At thesame time, we will develop products useful on diverse
work sites as we aim for increased market share.
On the production side, we will expand plants in
Romania, China, and elsewhere as we continue buildingout our production framework. Additionally, we will utilize
robotics, the IoT for machinery maintenance, and otherapproaches to actively streamline stafﬁng, create
operator-less systems, and enhance efﬁciency.
In terms of sales and marketing, we will strengthen
logistics functions domestically, as well as in Germany,
the UK, and the USA, while tapping new sales channels
and expanding sales bases to meet new markets forgardening equipment and other divisions. Also, as thenumber of our products increases, we have launched
a new response system that utilizes AI, allowing us toaccurately and quickly handle customer inquiries.
Starting from the UK, then moving to other
English-speaking countries, and now we are rollingout this system in Spanish-speaking countries as well,and will expand it to cover other languages in the future.

tell us about your approach to
Q Please
dividends and shareholder returns.
10 yen as a minimum
A Settingfor our annual dividend

payment, we are striving forstable dividends following ourbasic policy to target a 30%
consolidated payout ratio.

7

what message would you like
Q Last,to give stakeholders?
will steadily move forward
A We
in step with stakeholders as

we keep our sights set onlong-term growth.
Makita’s long-term goal is to be a “strong company.”
In order to display long-lasting strength in any businessenvironment, the essential management policy for
Makita is to “strive to exist in harmony with society,”“value our customers,” and promote “a stalwart
corporate culture, encouraging all individuals toperform to their highest level.” From the outset,
Makita’s ability to build our current position in the
power tools market has come from our desire to movecloser to customers. As such, we have dedicatedenergy to developing products and establishing service
platforms that minutely respond to customer needs.
Consequently, we will continue identifying theneeds of the times, passing on our corporate DNA ofdeveloping alongside customers, and boldly taking
on new challenges as we build the foundation for the
next 100 years. First, we will leverage Makita’s strengths
and strive for a cordless shift by using lithium-ion
batteries in all of our products. Furthermore, we willgrow sales in the gardening equipment business to bringthem up to a level rivaling the power tools business.
In the coming several years, I would like to emphasize
active investments that will support these ambitions.
Makita is grateful for the on-going understandingof stakeholders, because it is this support that allows
us to keep our eyes focused on long-term growth andsteadily carry out what we must. We intend to manage
our business with the aim of achieving mutual growthwith all stakeholders, and we look forward to
everyone’s ongoing support.

Munetoshi Goto
President,
Representative Director

8

MAKITA Annual Report 2019

Special Feature

Expanding Global Sales ofcordless OPE.
＊

＊ OPE stands for outdoor power equipment, used for outdoor work such as gardening, agriculture, and forestry.

Consistently holding
product demonstrations
from region to region.

Cordless Lawn Mower
DLM46018V Lithium-ion battery

9Presenting product ideas for
replacing engine-powered productswith battery-powered products.

New product development and capital
expenditures leveraging the strengthsof battery-powered products.

OPE has largely been engine powered, which has
advantages in terms of power and force, but also has
exhaust that affects the environment, noise and vibrationthat affect local surroundings, and physical burdens that
affect users. Furthermore, a certain degree of experienceand technique is required to start up engine-powered
equipment, which has not made them user friendly forsome users.
Given these challenges, Makita designed cordless
OPE with the following advantages.

In this day of globally intensifying environmental protection
and labor shortages, we are called upon to deliver moreenvironmentally and user friendly products. That is why
Makita addresses these problems by providing customers
with optimal solutions utilizing the advantages of cordless
OPE. Moreover, we use product and service feedback
from customers around the world to accurately understandcustomer needs and incorporate that knowledge into
product improvements.
Going forward, we will continue energetically making
capital investments and developing new products as we
focus on growing cordless OPE as the second pillar of ourbusiness. In the process, we will contribute to improving
work performance and the comfort for our customers.

No exhaust isreleased during use
Low noise andlow vibration●

Lower environmental burden●Less physical strain on users●

Helps ensure a more comfortableenvironment in and around theworkplace

Zero
Zero start-up
procedures, norefueling, and alightweight design●

Easy to use for womenand the elderly

exhaust ＊

Zero

Zero

fuel ＊

start-upprocedures

Low
noise

＊During equipment operation

Putting Makita’s strengths toward expanding sales of cordless OPE.
Leveraging the strength we have accumulated in developing, marketing, and manufacturing power tools, we are dedicating
effort toward growing sales of cordless OPE while contributing to solving the environmental issue of exhaust and the social
issue of labor shortages.
Development front

Marketing front

Manufacturing front

Recharging-control andmotor technologies
fostered for power tools

A sales and service
network spanning
the globe

Timely manufacturing
and supply that meetsregional demand

Makita preceded other companies
in pioneering the use of lithium-ion
batteries in power tools and sincethat time has driven productdevelopment with industry-leading
recharging-control and motor
technologies.
In recent years, advances inhigher motor output andhigher battery capacity havemade using battery-powered
products much the same asusing engine-powered products,
and Makita has expanded our
lineup of cordless OPE.

Following our policy of being
closely aligned with markets andcustomers, we have a globally
preeminent sales and service
network. Leveraging thisnetwork, we provide fast andprecise service, speciﬁc tocustomer needs, while also
gathering feedback on our sales
and services worldwide.
We also hold many events andactivities allowing users acrossthe globe to experience theadvantages of cordless OPE.

With our plants in eight
countries around the world,
Makita is able to manufacture
products in a timely fashion andsupply them to meet regional
demand. Furthermore, by using
robots and on-site ingenuity, weare building a framework thatcan consistently manufacturehigh-quality products
regardless of the individual
experience, expertise, or
artisanship of each region’s
workers.

10

MAKITA Annual Report 2019

ESG Management

E

Environmentally Conscious Design

Environment

The “Go Green” slogan symbolizes Makita’s commitment
to continually providing new value as a comprehensive
international supplier of tools. We hope to always remain
a company that maintains a steadyeye on society, challenging ourselvesto create a “sustainable
recycling-oriented society” thatcombines the environment with theeconomy.

Makita’s concepts for environmentally conscious products
began with a product assessment in 1992 and was
followed by the codification of the Makita’s Global
Environment Charter in 1993, the year that we kicked off
our full-fledged development of products that take theenvironment into consideration.
We have endeavored to improve the energy efficiency,
weight, and longevity of products, while also usingmaterials that are considerate of the environment, as we
continue developing tools that can be recycled.

Environmental Policy
DUC254
Achieves performance on par with a
23-mL engine-powered productLow noise with zero exhaust＊, zero fuelconsumption＊ and zero start-up procedures＊ During equipment operation

Basic Principles
As a global supplier of power tools used in building homes
and in everyday life, Makita is aiming to conduct a wide
range of environmental protection activities, in order tocontribute to have sustainable society and conservationof biodiversity.

Policies
1. Enforcement of environmental administrative structure
2. Continuous improvement and pollution prevention
3. Compliance with applicable laws and regulations
4. Establishment and review of objectives and aims
5. Reduction of environmental burden
6. Disclosure
Please see the Company website for the full text of ourpolicies.

Environmental Management

Preventing Global Warming
Makita is striving to improve environmental issues and,particularly with regard to trying to prevent global
warming, has been dedicating effort toward reducing CO2
emissions.
In addition to energy-saving activities such as
installing LED lighting and high-efficiency equipment(AC units, compressors, manufacturing machinery,etc.), we also carry out awareness activities. These
include distributing energy-saving promotional material
to employees and making regular patrols checking
energy-saving responses in offices and plants.
Changes in CO2 emissions

Makita has established and run its own environmental
management system since 1998. After that year, for the
purpose of leveraging that system as a tool for mitigating
environmental burdens, our Head Office and Okazaki
Plant first received ISO 14001 certification in 2007. In
later years, all of our overseas production bases received
the certification and are now operating environmental
management systems.
We promote the protection of the environment at allof our business bases and carry out activities, such as
Internal Environmental Audits and environmental
education, based on the requirements of the certification.

Bar graph: CO2 emissions
Line graph: intensity per unit of net sales (scale on the right)
Japan:
Overseas:(t-CO2/yr)
60,00056,338 25

50,00018.05

2040,00015
30,00010
20,00011,61010,000011(t-CO2/100 million yen)

3.56
3/20153/20163/20173/20183/2019

5

0
(FY)

S

SocialQuality Assurance

For training programs, we carry out stratified training(tailored to match each employee’s career stage),correspondence training, as well as actively offering
on-site, overseas job training for young employees, inorder to allow our workers to build up professional skills
as we foster human resources capable of being active
on a global stage.

Makita has established a framework for assuring quality
in all processes, from the design stage through mass
production.
First, development strives to better incorporate
certain features into product designs so that malfunctions
do not occur. Next, evaluations are made from multiple
perspectives (legal
compliance, standards
compliance, functionality,
durability, etc.) and the
product is tested toensure that customers
can use it safely, securely,
and to their satisfaction.

CSR Procurement
Makita believes that working with business partners topromote procurement emphasizing social considerations isimportant in order to establish a framework for supplying
safe, high-quality products.
Makita has created a “Basic Policy on Procurement”
and requires that business partners comply with legal
and social codes (including preventing corruption). We
ask that partners pay due consideration to human rights
and occupational health and safety (including prohibitions
against forced labor, child labor, and human trafficking)and also give due consideration to the environment. We
also carry out annual environmental protection activity
surveys of business partners every year as we promoteresponsible procurement.

Fostering Human Resources
What supports our growth is nothing other than thetalents of the people working at Makita : “Don’t beangry, arrogant, panic, mope, or give up.” These are
the words of Jujiro Goto, who along with founderMosaburo Makita built this company and transformed it
into “a power tools corporation.” Grounded in thispersonal philosophy of Mr. Goto, we strive to provide
each and every Makita employee with the opportunity
to exercise his or her talents.

Diversity Promotion
Makita strives to create a workplace that gives diverse
employees a sense of purpose and a secure environment
for their professional activity.
Hiring Employees of Foreign Nationality
Approximately 80% of Makita Group employees are
hired overseas and international students are also hiredin Japan.
Additionally, as a company that emphasizes a local,
on-site business philosophy, we have, for many years,
placed weight on diverse employees who can localize
our business practices. Evidence of this is in the active
contributions of employees with foreign nationality,
including employees of overseas subsidiaries having
been promoted to corporate officer positions at our
Head Office.
Active Employment of Female Employees
In the Makita Group, female employees are actively
contributing in numerous divisions. We have more than
150 women in management positions in the Group,
which supports our global business platform.

12

MAKITA Annual Report 2019

ESG Management

GInternal Audits and Audits by Audit& Supervisory Board Members

Governance

Overview of the Corporate
Governance Structure
Makita has adopted an Audit & Supervisory Board system.
The Audit & Supervisory Board consists of four Audit &Supervisory Board Members, three of whom are independent
Outside Audit & Supervisory Board Members who are notand have not been employed by the Corporation, including
two who serve in a part-time capacity. This system allows
the two standing Audit & Supervisory Board Members toaudit the execution of duties by Directors at all times. Twoof the four Audit & Supervisory Board Members haveconsiderable knowledge of finance and accounting.
Makita’s Articles of Incorporation stipulate that the numberof Audit & Supervisory Board Members shall not exceed
five.
The Board of Directors determines basic policies,
matters required by law, and important matters relating tomanagement. Makita introduced a Corporate Officer
system in June 2009 to facilitate prompt implementation of
the Group strategy and strengthen the business execution
structure. As such, Makita strives to engage in flexible andefficient business operations, while enhancing corporate
value. The Board of Directors currently consists of thirteen
Directors, two of whom are independent Outside Directors.
Makita’s Articles of Incorporation stipulate that the number
of Directors shall not exceed fifteen.

As an independent organization in charge of Makita’s
internal audits, the Internal Audit Division conducts theinternal audits necessary to maintain the soundness of
Makita’s management.
With regard to audits by Audit & Supervisory Board
Members, in accordance with the audit policy and divisionof duties established by the Audit & Supervisory Board, thefour Audit & Supervisory Board Members attend meetingsof the Board of Directors and other important meetings,
receive reports on operations from the Directors, readimportant documents such as approval requests, andexamine the status of operations and assets at the Head
Office and principal places of business. They request
business reports from subsidiaries, and as necessary, visit
important subsidiaries to examine the status of operations
and assets. They also share information by receiving, as
needed, audit reports and reports on Makita’s condition
from the Accounting Auditor.

Relationships with the Outside
Directors and Outside Audit &Supervisory Board Members
Outside Director Mr. Akiyoshi Morita has amassed intimate
knowledge of corporate management through many yearsof participating in the management of Toyota Motor
Corporation and Aichi Steel Corporation, a core company of
the Toyota Group. Mr. Morita attends meetings of Makita’s
Board of Directors and is responsible for strengthening
management oversight functions, using his experience andknowledge as a management professional cultivated

The following is a schematic diagram of the Makita Group’s corporate governance structure

General Meeting of Shareholders
Appointment / Dismissal
Board of Directors
13 Directors including
2 Outside Directors

Appointment / Dismissal
Audit & Supervisory Board
4 Members including
3 Outside Members

Audit

SupportAppointment / Dismissal /Supervision
Audit
ChairmanPresident
Corporate
OfﬁcerAudit & Supervisory Board
Staff Ofﬁce

Internal Audit Division
Audit

13

ReportDisclosure Committee

ReportCorporate Ofﬁcer,
General Manager of
Administration
Headquarters

Corporate Divisions/Group Companies

Collaboration

Financial Statements Audit
Internal Control Audit

Appointment /Dismissal
Accounting Auditorthroughout his career, offering advice and recommendationsin accordance with that role.
Outside Director Mr. Masahiro Sugino has intimate
knowledge of corporate management through many years of
involvement in running INAX Corporation and LIXIL Group. Mr.
Sugino attends meetings of Makita’s Board of Directors and is
responsible for strengthening management oversight functions,using his experience and knowledge as a management
professional cultivated throughout his career, offering advice
and recommendations in accordance with that role.
Although the Makita Group has business transactions
with Aichi Steel Corporation and LIXIL Corporation, where
Mr. Morita and Mr. Sugino were previously employed, thetransactional relationships are not material, due to thetransaction amounts being minor.
Outside Audit & Supervisory Board Member Mr. Akira
Kodama has many years of experience at financial
institutions, in addition to his professional knowledge offinance. He attends meetings of Makita’s Board of Directors
and Audit & Supervisory Board, offering opinions based on
his perspective as an experienced professional.
Outside Audit & Supervisory Board Member Mr. Fusahiro
Yamamoto has amassed intimate knowledge of corporate
accounting in his capacity as a certified public accountant.
He attends meetings of Makita’s Board of Directors andAudit & Supervisory Board, offering opinions based on his
perspective as an experienced professional.
Outside Audit & Supervisory Board Member Mr. Shoji Inoue
has professional knowledge and abundant experience as an
attorney. He attends meetings of Makita’s Board of
Directors and Audit & Supervisory Board, offering opinions
based on his perspective as a professional.
Although the Makita Group has business transactions
with The Hekikai Shinkin Bank, where Mr. Kodama waspreviously employed, the transactional relationship is notmaterial, due to the business transactions being
deposit-only.

Makita deems there is no risk of conflict of interest withordinary shareholders and has designated Outside Directors
Akiyoshi Morita and Masahiro Sugino as independent
Directors and Outside Audit & Supervisory Board Members
Akira Kodama, Fusahiro Yamamoto, and Shoji Inoue as
independent Audit & Supervisory Board Members inaccordance with the regulations of financial instruments
exchanges. Makita has entered into agreements with theabove-mentioned two Outside Directors and three Outside
Audit & Supervisory Board Members, with respect to their
liability for damages to the Corporation as prescribed in
Article 423, Paragraph 1, of the Companies Act, to limit the
total amount of liabilities to the sum of the amounts
prescribed in the items of Article 425, Paragraph 1, thereof.
The role of Makita’s Outside Directors is to strengthen
the efficacy of oversight by the Board of Directors concerning
the duties by Directors, from an impartial, external perspectivewith no possibility of conflict of interest with ordinary
shareholders. Moreover, Outside Audit & Supervisory Board
Members of the Corporation have their own specialist
expertise. Their role is to audit the execution of business byDirectors, from an impartial, external perspective with nopossibility of conflict of interest with ordinary shareholders.
To properly fulfill their roles, Outside Directors and Outside
Audit & Supervisory Board Members receive reports on
business performance, internal control systems, and the likeat Board of Directors meetings, where they cooperate witheach other and exchange opinions as necessary. Makita
has not established particular criteria or policies covering
the independence of Outside Directors. When appointing
Outside Directors and Outside Audit & Supervisory Board
Members, we refer to criteria on the independence ofOutside Directors determined by financial instruments
exchanges. Accordingly, we believe our system forappointing Outside Directors and Outside Audit &Supervisory Board Members is appropriate.

Length of Appointment and Attendance at Board of Directors and Audit & Supervisory Board Meetings
Classification

Length ofappointment(tenure)Attendance at Board of Directors meetings(ﬁscal year ended March 31, 2019)

Attendance at Audit &Supervisory Board meetings(ﬁscal year ended March 31, 2019)

Mr. Akiyoshi Morita

6 years

83% (10 of 12 meetings)―

Mr. Masahiro Sugino

4 years

100% (12 of 12 meetings)―

Mr. Akira Kodama

3 years

100% (12 of 12 meetings)

100% (14 of 14 meetings)

Mr. Fusahiro Yamamoto

6 years

100% (12 of 12 meetings)

100% (14 of 14 meetings)

Mr. Shoji Inoue

3 years

100% (12 of 12 meetings)

100% (14 of 14 meetings)

Name

Director

Audit &
Supervisory
Board Member

Note: Length of appointment (tenure) up to July 1, 201914

MAKITA Annual Report 2019

ESG Management

Policy on the Determination of
Remuneration for Directors
Compensation (for the year ended March 31, 2019) for
Makita Directors is comprised of monthly salaries, bonuses,
and stock options. Monthly salaries for Directors are paid
according to position and the like, within limits for totalmonthly compensation prescribed by resolution of theGeneral Meeting of Shareholders.
Director bonuses, which Directors (excluding Outside
Directors) are eligible for, are linked to consolidated businessresults, with the aim of raising Directors’ motivation to
improve business performance.
Seeking to increase morale and motivation to help
improve corporate value over the medium and long terms,
Makita issues stock compensation-type stock options to
Directors (excluding Outside Directors) so that they share
the risks and rewards of stock price fluctuations withshareholders. In the fiscal year ended March 31, 2019,
total compensation of 386 million yen was paid to 13
Directors. This included base compensation of 120 million
yen, bonuses of 226 million yen (not applicable to the two
Outside Directors), and stock options of 40 million yen(not applicable to the two Outside Directors).
At the 107th General Meeting of Shareholders held on
June 26, 2019, the Corporation passed a resolution to adopt
a restricted share-based compensation plan in place of thestock option-based compensation plan.
To ensure independence from management, the total
amount of compensation for Audit & Supervisory Board
Members is fixed, with the specific amount determined inconsultation with auditors. In the fiscal year ended March
31, 2019, total compensation of 41 million yen was paid tofour Audit & Supervisory Board Members.

Risk Management
In accordance with Makita’s system for internal control basedon the Companies Act, Makita strives for risk management andendeavors to be a company that is resilient toward crises.
The Disclosure Committee, which identifies and investigatesrisks in the Group’s business activities, holds annual meetings
attended by the representative Directors, Directors in charge,
standing Audit & Supervisory Board Members, and General
Managers of the Internal Audit Division and respective
departments of the Company. Matters that are deemed
possible risk factors are disclosed on Makita’s website.
Each Director exercises authority and takes responsibility
for implementing the Group-wide risk management framework
in his or her own division, and also reports to the Board of
Directors and Audit & Supervisory Board when a situation occurs

15

that is material to business management. Also in each division,
regulations and guidelines are stipulated and followed in orderto carry out risk management necessary for quality control,
disaster prevention, capital utilization, and the like.
Amidst concern in recent years over the occurrence ofmajor earthquakes and other natural disasters, Makita
recognizes that being able to respond to disasters is a criticalissue. Makita has formed a Fire & Disaster Prevention Committee
comprised of the heads of relevant divisions and has formulated
disaster prevention regulations with this committee at the center.
These disaster prevention regulations and other measures,
which are reviewed regularly, define steps for disaster prevention,
emergency response measures, and disaster recovery efforts.
Similarly, these regulations and measures outline a business
continuity plan (BCP) for times of disaster. The target organizations
and scope of this plan are also reviewed as necessary.

Compliance
Makita holds a philosophy of “striving to exist in harmony
with society,” which is a uniform approach affecting ourManagement Policy / Quality Policy. As such, we thoroughly
ensure that executives and employees comply with legal,
regulatory, and ethical principles. Makita’s “Code of Ethics”
and “Guidelines to the Code of Ethics for Makita,” which
outline the conduct expected of Group Executives andemployees, stipulate the importance of ethical conduct,
avoiding conflicts of interest, complying with relevant laws
and social standards, properly disclosing information,
respecting human rights, restricting gifts and incentives,
prohibiting bribes, and prohibiting unfair business
transactions. Executives and employees are provided withregular information and training about Makita’s “Code of
Ethics” and “Guidelines to the Code of Ethics for Makita.” Inorder to instill an awareness of the importance of compliance,
employees are given an Ethical Compliance Survey, while
new hires and newly appointed managers are provided withcompliance training.
In order to minimize, preempt, and if necessary, quickly
discover and resolve, conduct in violation of the “Code of
Ethics,” Makita has established “Regulations Regarding
Corporate Ethics Helpline (Internal Reporting)” with
provisions for accepting internal as well as external reports.
Thorough measures are taken in these regulations to protect
whistleblowers so that they do not incur any disadvantage forreporting to the Corporate Ethics Helpline. If necessary, thecontent of reports is also shared within the Company, andsteps are taken in order to remedy and prevent recurrenceof the matter in question.

Messages from Outside Directors
We will further polish Makita’s strength of making operations “visual” as
we improve Group governance.
On the Board of Directors, top management follows a thorough approach
toward outlining global conditions and the market environment,
while precisely identifying Makita’s position in that context. This
allows us to make decisions on future challenges and strategies.
Additionally, each Director diligently visits work-sites inside and outside
Japan in order to understand issues and create a corporate
culture that implements local alignment with local products.
Consequently, even as the market environment ﬂuctuates greatly,
Directors are able to take speciﬁc steps in their area of responsibility
so that top management is not acting arbitrarily without consultation.
Makita has an overseas sales ratio above 80%, coupled with a sales
network and service framework that spans the globe. Our greatest
strength is highly visible Group-wide governance directed by Head Ofﬁce
management. In order to further increase our corporate prowess, I thinkthat it will be important for us to have management that leverages
this strength, hones our know-how to a new level, and boosts ourtechnical capabilities. In addition, I would like us to encourage
young professionals to challenge in new ﬁelds utilizing Makita’s
strengths.

Mr. Akiyoshi Morita
Outside Director
Appointed to the position of Makita Outside
Director in June 2013
Outside Director Mr. Morita has amassed
impressive knowledge of corporate management
through many years of participating in the
management of Toyota Motor Corporation andAichi Steel Corporation, a core company of the
Toyota Group.

In order to contribute to the sustainable development of the Company,
we will fulﬁll check-and-balance functions from an objective standpoint.
In recent years, Makita has emphasized power tools as well as
shifting from engine-powered to battery-powered gardening
equipment, while being keenly aware of developing environmentallyfriendly products that are easy to use, quieter, and more energy
efﬁcient. Furthermore, Makita’s management has emphasized
more than proﬁt alone and has broadened its focus to include higher
customer satisfaction. The result of this mindset has been increased
demand, new customer markets, and greater shareholder value as we
continue to grow sustainably. At the same time, I think that a challenge
for us going forward is to pursue further diversity.
Currently, Makita is actively growing our business and recording
steady performance in the process. In this context, I would like tooffer, as an objective Outside Director, advice and suggestions that
fulﬁll checks and balances in order to contribute to Makita’s sustainable
development and continually ensure governance, transparency,
ethical conduct, and a structure that preempts any improprieties
at our subsidiaries.

Mr. Masahiro Sugino
Outside Director
Appointed to the position of Makita Outside
Director in June 2015
Outside Director Mr.Sugino has intimate
knowledge of corporate management throughmany years of involvement running LIXIL Group
Corporation, including INAX Corporation.

16

MAKITA Annual Report 201910-Year Summary
Makita Corporation and subsidiaries for the years ended March 31

U.S. GAAP

2010

2011

2012

2013

2014

2015

Net sales¥ 245,823¥ 272,630¥ 295,711¥ 309,630¥ 383,207¥ 414,718

Domestic

42,69746,06553,17556,55566,01967,740Overseas203,126

226,565

242,536

253,075

317,188346,978

Operating income

30,39041,90948,51645,36654,914

71,905

Income before income taxes

33,51842,73046,96345,691

56,974

68,394

Net income attributable to
Makita Corporation

22,25829,90532,49731,07638,45345,307¥ 57,126¥ 19,617

8,622¥ 38,364¥ 41,686¥ 35,894

Net cash used in investing activities(17,668)(19,334)(4,500)(15,414)(20,084)(20,096)

Free cash flows

39,458283

4,122

22,95021,602

15,798Net cash used in financing activities(9,114)(7,355)(12,707)(10,650)(7,365)(12,017)

9,742¥ 13,481¥ 11,481¥ 11,417¥ 12,124

Net cash provided byoperating activities

Capital expenditures¥ 10,837¥¥

Depreciation and amortization

8,308

7,557

7,237

7,542

8,622

8,619

R&D cost

6,782

7,283

7,603

8,396

8,720

9,117

¥ 349,839¥ 372,507¥ 383,256¥ 440,974¥ 519,121¥ 575,328

Net working capital

211,336

219,270

223,045

266,950

310,750

358,245

Total Makita Corporation
shareholders’ equity

297,207

307,149

321,253

373,543435,934

486,021

929

887

2,363

1,703

4,163

5,030

80.78

¥ 108.54¥ 118.39¥ 114.46¥ 141.65¥ 166.89

1,078.7

1,114.8

1,183.2

1,375.9

1,605.8

1,790.3

52.0

66.0

72.0

69.0

91.0

118.0

12.4%

15.4%

16.4%

14.7%

14.3%

17.3%

ROE

7.7%

9.9%

10.3%

8.9%

9.5%

9.8%

ROA

Total assets

Interest-bearing debt

Per share amounts
Earning per share (basic)
Net income attributable
to Makita Corporationcommon shareholders
Total Makita Corporation
shareholders’ equity per share
Cash dividends applicable to theyear per share¥

Other data
Ratio of operating income to
net sales

6.5%

8.3%

8.6%

7.5%

8.0%

8.3%

Total Makita Corporation shareholders’equity ratio to total assets

85.0%

82.5%

83.8%

84.7%

84.0%

84.5%

Average number of shares outstanding

275,524,103

275,518,548

274,489,367

271,496,178

271,481,657

271,472,428

Number of shares issued excluding
treasury stock

275,520,804

275,515,398

271,501,036

271,491,854

271,475,252

271,469,736

10,32812,054

12,563

12,68012,804

13,835

Employees

Notes: 1. Earning per share (basic) Net income attributable to Makita Corporation common shareholders and profit attributable to owners of the parent per share (basic) is computed
based on the average number of shares outstanding during the term.
2. Figures are rounded up/down to the nearest million yen.

17

Yen in millions

Yen in millions

2016

2017

2018

IFRS

2018

2019

¥ 423,623¥ 414,999¥ 477,298

Revenue¥ 477,298¥ 490,578

68,44574,381

82,575

Domestic

82,575

92,129355,178

340,618

394,723

Overseas394,723

398,449

64,67662,564

79,762

Operating profit

80,23178,30561,49264,73879,678

Profit before income taxes

79,86579,91954,94355,750¥ 34,191¥ 23,155

41,61544,78254,755

Profit attributable toowners of the parent¥ 34,188¥ 63,351¥ 33,294

Net cash provided byoperating activities(6,573)(5,015)(14,811)

Net cash used in investing activities(15,708)(15,329)

27,61558,33618,483

Free cash flows

18,483

7,826(18,719)(9,495)(17,743)

Net cash used in financing activities(17,743)(8,231)¥ 11,769¥ 13,222¥ 14,149¥ 15,045¥ 23,867

9,284

8,943

9,917

Depreciation and amortization

10,783

11,271

9,593

10,13910,894R&D cost

10,924

11,258¥ 558,024¥ 597,249¥ 651,031

Total assets¥ 654,841¥ 680,250

362,675

374,297

415,979

Net working capital

398,355

402,335

554,046

572,748

3,544

11,960Capital expenditures

479,752

502,170

551,939

Equity attributable toowners of the parent

2,225

6,597

3,544

Interest-bearing debt

Yen

¥ 153.30¥ 164.96¥ 201.70

1,767.3

1,849.9

2,033.2

101.0

100.0

61.0

Per share amounts
Profit attributable toowners of the parent per share (basic)
Equity attributable to ownersof the parent per share
Cash dividends applicable to theyear per share

Yen¥ 202.39¥ 205.37

2,040.9

2,109.8

61.0

62.0

Other data

15.3%

15.1%

16.7%

Ratio of operating profit
to revenue

16.8%

16.0%

8.6%

9.1%

10.4%

ROE

10.4%

9.9%

7.3%

7.8%

8.8%

ROA

8.8%

8.4%

84.6%

84.2%

Ratio of equity attributable toowners of the parent to total assets

86.0%

84.1%

84.8%

271,468,232

271,463,676

271,465,951

Average number of shares outstanding

271,465,951

271,467,574

Number of shares issued excluding
treasury stock

271,467,928

271,467,057

16,137

16,424271,466,522

271,460,572

271,467,928

14,784

15,344

16,137

Employees

3. The Company implemented a two-for-one common stock split, effective April 1, 2017. Figures for Earning per share (basic) Net income attributable to Makita Corporation common shareholders,
total Makita Corporation shareholders’ equity per share, average number of shares outstanding, and number of shares issued excluding treasury stock are calculated based on the assumptionthat the relevant stock split was carried out for prior years as well. Regarding cash dividends applicable to the year per share, actual dividend amounts before the relevant stock split are stated.

18

MAKITA Annual Report 2019

Consolidated Statement of Financial Position
Makita Corporation and subsidiaries as of March 31, 2018 and 2019

Yen in millions

ASSETS20182019¥ 142,181¥ 147,320¥ 146,512

Trade receivables and other receivables

67,262

78,98879,450Inventories

167,523

196,454219,938

Other financial assets

50,11248,03737,828Prepaid expenses and other current assets

6,682

8,663

9,401

433,760

479,462

493,129

Property, plant and equipment¥ 95,488¥ 100,813¥ 112,441

Goodwill and intangible assets

6,637

6,991

8,039

Other financial assets

43,80045,561

43,566Retirement benefit asset

8,382

9,729

9,541

Deferred income taxes

9,169

10,049

9,342

Other non-current assets

2,317

2,236

4,192

Total non-current assets

165,793

175,379

187,121¥ 559,553¥ 654,841¥ 680,250

As of April 1, 2017

Current assets:
Cash and cash equivalents

Total current assets

Non-current assets:

Total assets

19

Yen in millions

LIABILITIES AND EQUITYAs of April 1, 2017

2018

2019

¥ 33,460¥ 35,024¥ 38,904

6,564

3,361

11,799Other financial liabilities

284

429

220

Income taxes payable

7,264

10,071

7,153

Provisions

3,412

2,928

3,040

Other current liabilities

24,89929,29429,678

Total current liabilities

75,883

81,107

90,794

Liabilities

Current liabilities:
Trade payables and other payables
Borrowings

Non-current liabilities:
Retirement benefit liabilities

¥

3,161

¥

3,206

¥

3,231

18

133

256

Provisions

1,440

1,352

1,293

Deferred income taxes

10,738

10,388

7,236

234

216

218

15,591

15,295

12,234¥ 91,474¥ 96,402¥ 103,028¥ 23,805¥ 23,805¥ 23,805

Additional paid-in capital

45,50145,53145,571Retained earnings

427,999469,232

508,622

Treasury stock, at cost

(11,623)(11,617)(11,681)

Other components of equity

18,55727,095

6,431

504,239554,046

572,748

3,840

4,393

4,474

Total equity¥ 508,079¥ 558,439¥ 577,222

Total liabilities and equity¥ 599,553¥ 654,841¥ 680,250

Other financial liabilities

Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityCommon stock

Total equity attributable to owners of the parent
Non-controlling interest

20

MAKITA Annual Report 2019

Consolidated Statements of Proﬁt or Loss
Makita Corporation and subsidiaries for the years ended March 31, 2018 and 2019

Yen in millions

2018

2019

Revenue¥ 477,298¥ 490,578

Cost of sales(301,392)
175,906(95,675)
80,231
3,180(3,546)
79,865(24,406)
55,459(313,356)
177,222(98,917)78,3052,680(1,066)
79,919(23,728)
56,191¥ 54,943
516¥ 55,750
441

Gross profit
Selling, general, administrative and others, net
Operating profit
Financial income
Financial expenses
Profit before income taxes
Income tax expenses
ProfitProfit attributable to:
Owners of the parent
Non-controlling interests
Profit attributable to owners of the parent per share

Yen¥ 202.39
202.37¥ 205.37
205.3420182019¥ 55,459¥ 56,191(1,098)188(7,889)
(87)

(910)

(7,976)

9,853(12,623)

Total of items that may be reclassified to profit (loss)

9,853(12,623)

Total other comprehensive income (loss), net of tax

8,943(20,599)¥ 64,402¥ 35,592¥ 63,669¥ 35,286
306

Profit attributable to owners of the parent per share (basic)
Profit attributable to owners of the parent per share (diluted)

Consolidated Statements of Comprehensive Income
Makita Corporation and subsidiaries for the years ended March 31, 2018 and 2019
Yen in millions

IncomeOther comprehensive income (loss), net of tax
Items that will not be reclassiﬁed to income (loss)
Equity financial goods measured at fair value through other comprehensive loss
Remeasurement of defined benefit plans
Total of items that will not be reclassified to income (loss)
Items that may be reclassiﬁed to proﬁt or loss
Exchange differences on translating foreign operations

Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

21

733

MAKITA Annual Report 2019

Consolidated Statement of Changes in Equity
Makita Corporation and subsidiaries for the years ended March 31, 2018 and 2019

Yen in millions
Equity attributable to owners of the parent
Common stock

Balance at April 1, 2017

¥ 23,805

Additional
paid-in capital

Retainedearnings¥ 45,501 ¥ 427,999

Treasury stock¥ (11,623)

Other componentsof equity¥ 18,557 ¥ 504,239

54,943

Profit for the year
Other comprehensive
incomeComprehensive incomeーー

Dividends paid

54,943ーDisposal of treasury stock(11)

Share-based
payment transaction

41

Transfer from othercomponents of equity
to retained earnings

188

Other increaseor decrease(53)

Total amounts oftransactions with owners

ーBalance at March 31, 2018

¥ 23,805

30

Total equity¥ 3,840 ¥ 508,079

54,943516

55,459

8,726

8,726

217

8,943

8,726

63,669733

64,402(13,845)(180)(14,025)(13,845)

Purchase of treasury stock

Non-Controllinginterest

Total

(5)

(5)

(5)

11

0

0

41

41

ー

ー

(53)

(53)

(188)

(13,710)6¥ 45,531 ¥ 469,232¥ (11,617)(188)(13,862)¥ 27,095 ¥ 554,046(180)(14,042)¥ 4,393 ¥ 558,439

Yen in millions
Equity attributable to owners of the parent
Common stock

Balance at April 1, 2018

¥ 23,805

Additional
paid-in capital

Retainedearnings¥ 45,531 ¥ 469,232

Treasury stock¥ (11,617)

ーー

Dividends paid

55,750ー

Disposal of treasury stock0

Share-based
payment transaction

56,191(20,464)(20,464)(135)(20,599)(20,464)

35,286306

35,592(16,560)(225)(16,785)

(4)

(4)

(4)

0

0

0

40

40

ー

ー

(60)

(60)

200

Other increaseor decrease

(200)
(60)

Total amounts oftransactions with owners

ーBalance at March 31, 2019

¥ 23,805(16,360)(64)¥ 45,571 ¥ 508,622¥ (11,681)

40¥ 4,393 ¥ 558,439
441

40

Transfer from othercomponents of equity
to retained earnings

Total equity

55,750(16,560)

Purchase of treasury stock

Non-Controllinginterest

Total¥ 27,095 ¥ 554,046

55,750

Profit for the year
Other comprehensive
incomeComprehensive income

Other componentsof equity(200)(16,584)¥ 6,431 ¥ 572,748(225)(16,809)¥ 4,474 ¥ 577,222

22

MAKITA Annual Report 2019

Consolidated Statements of Cash Flows
Makita Corporation and subsidiaries for the years ended March 31, 2018 and 2019

Yen in millions

2018

2019

Cash flows from operating activities:
Profit¥ 55,459¥ 56,191

Depreciation and amortization

10,783

11,271

Income tax expenses

24,40623,728Financial income and expenses

366(1,614)

Loss (gain) on sales and retirement of property, plant and equipment

18

113

Decrease (increase) in trade receivables and other receivables(11,187)(2,085)Decrease (increase) in inventories(24,289)(30,455)

Increase (decrease) in trade payables and other payables

2,495

2,581

Decrease (increase) in retirement benefit assets and liabilities(1,433)395

ー(8,990)Other(3,103)(4,487)

Subtotal

53,51546,648Decrease (increase) in guarantee deposits

Dividends received

497

643

Interest received

2,409

2,004

Interest paid

(43)

(47)

Income taxes paid

(22,187)(26,093)

Cash flows from operating activities

34,191

23,155(15,045)(23,867)

Cash flows from investing activities:
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investments

496

382

(8,743)(12,745)

Proceeds from sales and redemption of investments

16,193

5,634

Payments into time deposits(51,010)(31,902)

Proceeds from withdrawal of time deposits

42,37447,758Other
Cash flows from investing activities

27

(589)

(15,708)(15,329)(3,667)

8,704

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Purchase and sales of treasury stock, net

(5)

(4)

(13,845)(16,560)

(226)

(371)

(17,743)(8,231)

Effect of exchange rate changes on cash and cash equivalents

4,399

(403)

Net change in cash and cash equivalents

5,139

(808)

142,181

147,320¥ 147,320¥ 146,512

Cash dividends paid
Other
Cash flows from financing activities

Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year

23

MAKITA Annual Report 2019

Stock Information (As of March 31, 2019)

Total number of shares authorized

992,000,000 shares

Total number of shares outstanding

280,017,520 shares(Including treasury stock
8,550,463 shares)

The number of shareholders

11,665 shareholders

Major shareholders

Name18,824

6.93

Japan Trustee Services Bank, Ltd.
(Trust account)

12,849

4.73

Maruwa, Ltd.

8,638

3.18

MUFG Bank, Ltd.

8,426

3.10

Number ofshares(1,000 shares)

The Bank of New York Mellon
as Depositary Bank for DR Holders

7,714

2.84

280,018

Makita Cooperation Companies'
Investment Association

6,515

2.40

Japan Trustee Services Bank, Ltd.
(Trust account 9)

6,442

2.37

Sumitomo Mitsui Banking Corporation

5,800

2.13

JP Morgan
Chase Bank 385151

5,634

2.07

State Street Bank andTrust Company 505001

5,592

2.06

Total

86,434

31.81

Financial
institutions(35.7%)
99,910Treasury stock(3.1%)
8,550

Individuals andothers
(11.0%)
30,888Foreign institutions
and individuals(39.2%)
109,829

Financial
institutions(0.9%)
105

Treasury
stock(0.0%)
1
Other domestic
companies(2.5%)
289

Ratio ofshareholding(%)

The Master Trust Bank of Japan, Ltd.
(Trust account)

Breakdown by type of shareholder

Other domestic
companies(11.0%)
30,841

Number ofshares held
(1,000 shares)

The number ofshareholders
11,665

Foreign institutions
and individuals(5.3%)
618

Individuals andothers(91.3%)
10,652

Note: 1.The shareholding ratio is calculated based on the total number of outstanding
shares (excluding treasury stock) at the end of the period.
2.The Bank of New York Mellon as Depositary Bank for Depositary Receipt
Holders is the nominee of shares deposited for issuance as American
Depositary.
3. In addition to the above, Makita Corporation owns 8,550 thousand shares oftreasury stock without voting rights.

Stock Trends
（yen）
6,000

（yen）
28,0005,500

26,0005,000

24,00022,0004,500
Our stock price

20,0004,000

18,0003,500
Nikkei Stock Average(scale on the right)
3,000

16,0002,500

14,000001/20151/20161/20171/20181/2019Note: The Corporation implemented a two-for-one common stock split, effective April 1, 2017. For ease of comparison, the stock price indicated for the Company’s stock takes into
consideration the post-stock split value.

24

MAKITA Annual Report 2019

Corporate Data (As of March 31, 2019)

Corporate Name

Makita Corporation

Head Ofﬁce

3-11-8,
Sumiyoshi-cho, Anjo,
Aichi 446-8502, Japan
Phone: +81-(0)566-98-1711

Websitehttp://www.makita.biz/

Date of Founding

March 21, 1915

Date of Incorporation

December 10, 1938

Paid-in Capital

24,205,610 thousand yen

Description ofBusiness

Production and Sales ofElectric Power Tools,
Pneumatic Tools,
Gardening Equipment andHousehold Equipment

Consolidated 53 subsidiaries (2 domestic, 51 overseas)
Subsidiaries Main Subsidiaries
Makita U.S.A. Inc.
Makita (U.K.) Ltd.
Makita Werkzeug G.m.b.H.(Germany)
Makita France SAS
Makita Oy (Finland)
Makita LLC (Russia)
Makita (China) Co., Ltd.
Makita (Kunshan) Co., Ltd.
Makita (Australia) Pty. Ltd.
Makita do Brasil Ferramentas Elétricas Ltda.
Number of
Employees

Consolidated 16,424
Parent 2,906

Plants3 Japan plants
8 overseas plants(2 China plants, 1 each in the U.S.A.,
Brazil, the U.K., Germany,
Romania, and Thailand)

Sales and Service Bases
25

Production BasesNORTH
AMERICA

4

companies

Central andSouth America

6companies308

No. of Sales and Services BasesEUROPE27

bases

excluding Japan
companies

ASIA

10

companies

JAPAN
19

branches,

116 sales ofﬁces*Including the Miyakonojo Sales Ofﬁce opened in April 2019.

The Middle East
and Africa

2companies

Oceania

2

companies26http://www.makita.biz/