Makita Corporation
Consolidated Financial Results
for the three months
ended June 30, 2022
(IFRS Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2022 (Unaudited)
July 26, 2022

Makita Corporation
Stock code: 6586
URL: https://www.makita.biz/
Munetoshi Goto, President, Representative Director

1. Summary operating results of the three months ended June 30, 2022 (From April 1, 2022 to June 30, 2022)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the three months ended
For the three months ended
June 30, 2021
June 30, 2022(%)(%)
Revenue ................................................................
185,29745.9
195,348
5.4
Operating profit ....................................................
28,382
82.3
15,228(46.3)
Profit before income taxes ....................................
29,865
81.3
15,719(47.4)
Profit .....................................................................
21,816
86.7
10,436(52.2)
Profit attributable to owners of the parent ............
21,612
87.6
10,563(51.1)
Comprehensive income ........................................
29,461
85.2
56,425
91.5
Yen
Profit attributable to
Owners of the parent per share(Basic)..................................................................
79.59
38.90
(Diluted) ..............................................................
Notes:
1.
Amounts of less than one million yen have been rounded.
2.
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, profit,
profit attributable to owners of the parent, and comprehensive income against the corresponding period of the previous year.

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

Total assets ............................................................
Total equity ...........................................................
Equity attributable to owners of the parent ...........
Ratio of equity attributable to owners of theparent to total assets (%) .......................................

Yen (millions)
As of March 31, 2022
As of June 30, 2022
1,007,497
1,112,111
752,530
792,128
746,344785,740
74.1%

70.7%

Note: Amounts of less than one million yen have been rounded.

2. Dividend Information
Yen
For the year ended
March 31, 2022
Cash dividend per share:
Interim .................................................................
Year-end ..............................................................
Total ....................................................................

10.00
62.00
72.00

For the year ending
March 31, 2023
(Forecast)
10.00(Note)(Note)

Notes:
1. The forecast for cash dividend announced on April 27, 2022 has not been revised.
2. The projected amount of dividends for the year ending March 31, 2023 has not been determined yet. For further details, refer
to “Explanation regarding proper use of business forecast, and other significant matters” on page 2.

English translation of "KESSAN TANSHIN" originally issued in Japanese

13. Consolidated Financial Forecast for the year ending March 31, 2023 (From April 1, 2022 to March 31, 2023)
Yen (millions)
For the year ending
March 31, 2023(%)
Revenue .............................................................................................
740,000
0.1
Operating profit .................................................................................
85,000(7.3)
Profit before income taxes .................................................................
83,000(10.3)
Profit attributable to owners of the parent .........................................
59,000(8.9)
Yen
Profit attributable to
Owners of the parent per share(Basic) ..............................................
217.29Notes:
1. Changes of the forecasts from the most recent disclosure: No
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes and profit
attributable to owners of the parent against the previous year.

4. Other(1) Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes inscope of consolidation during the quarter): None
(2) Changes in accounting policies and accounting estimates:
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimate: None
(3) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury stock):
2. Number of treasury stock:
3. Average number of shares outstanding:

As of June 30, 2022:
As of March 31, 2022:
As of June 30, 2022:
As of March 31, 2022:
For the three months ended June 30, 2022:
For the three months ended June 30, 2021:

280,017,520
280,017,520
8,485,289
8,485,061
271,532,359
271,526,825

This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing
firm.
Explanation regarding proper use of business forecasts, and other significant matters
1. The financial forecast given above is based on information as available at the present time, and includes potential
risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts
provided above. Regarding the assumptions for the forecasts and other matters, refer to “SUPPLEMENTINFORMATION (CONSOLIDATED)”, “1. Overview of operating results”, “(3) Outlook for the fiscal year ending
March 31, 2023” on page 3.
2. Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or
greater, with a lower limit on annual cash dividends of 10 yen per share. However, in the event special
circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of theparent per share after certain adjustments.
The Board of Directors plans to meet in April 2023 for a report on earnings for the year ending March 31, 2023. At
the time, in accordance with the basic policy regarding profit distribution mentioned above, the Board of Directors
plans to propose a dividend equivalent to at least 30% of profit attributable to owners of the parent. The Board of
Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2023.
The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated profit
attributable to owners of the parent per share (after adjustments for special circumstances) and multiplied by 100.

English translation of "KESSAN TANSHIN" originally issued in Japanese

2

SUPPLEMENT INFORMATION (CONSOLIDATED)
1. Overview of operating results(1) Overview of operating results of the three month ended June 30, 2022
Looking at the international economic situation during the first quarter of the consolidated fiscal year under review,
the outlook remains uncertain due to such factors as the growing tension in Ukraine and the accompanying sharp risein energy prices and rising prices due to raw material shortages, amid differences between countries regarding their
responses to the COVID-19 pandemic.
In the first quarter, our consolidated net revenue increased 5.4% year on year to 195,348 million yen due to strong
sales in Japan, Oceania, and Central and South America, as well as the impact of the yen’s depreciation against local
currencies. In terms of profit, operating profit decreased by 46.3% year on year to 15,228 million yen (an operating
profit ratio of 7.8%) due to a worsening cost ratio as a result of the impact of foreign exchange rates, soaring raw
material prices and the impact of the temporary suspension of operations at our main plant in China due to the
lockdowns, along with increase in Selling, general, administrative and others expense. Profit before income taxes
decreased by 47.4% to 15,719 million yen (profit before income taxes ratio: 8.0%) and profit attributable to owners of
the parent decreased by 51.1% to 10,563 million yen (ratio of profit attributable to owners of the parent: 5.4%).
Revenue results by region were as follows:
In Japan, sales of both power tools and outdoor power equipment, mainly lithium-ion battery products, increased
4.5% year on year to 31,414 million yen with efforts to expand sales as stay-at-home demand subsided.
In Europe, business confidence dropped due to rising energy and raw material prices, but sales of cordless outdoor
power equipment were strong, along with the yen weakening against local currencies, resulting in a 3.1% year on year
increase to 94,204 million yen.
In North America, sales to home centers declined due to a slowdown in stay-at-home demand, resulting in a 2.7%
year on year decrease to 27,850 million yen.
In Asia, despite the impact of lockdowns in China, the economy is on a recovery track in countries and regions
where deregulation is progressing, resulting in a 13.4% year on year increase to 11,592 million yen.
In Central and South America, amid accelerating inflation in each country, we aggressively pursued region andcustomer-focused sales activities, resulting in a 23.7% year on year increase to 11,977 million yen.
In Oceania, despite negative economic factors such as material shortages and rising raw material prices, sales
activities that reliably captured demand for tools at building and construction sites resulted in a 24.2% year on year
increase to 14,970 million yen.
In the Middle East and Africa, despite continuing unstable political and economic conditions, sales increased 2.2%
year on year to 3,341 million yen on aggressive sales activities with meticulous attention to detail, as well as thedepreciation of the yen against local currencies.
(2) Overview of financial situation as of June 30, 2022
Total assets increased 104,614 million yen from the end of the previous fiscal year to 1,112,111 million yen. This
increase was mainly due to the rise in “Inventories.”
Total liabilities increased 65,016 million yen from the end of the previous fiscal year to 319,983 million yen. This
increase was mainly due to the rise in “Borrowings.”
Total equity increased 39,598 million yen from the end of the previous fiscal year to 792,128 million yen. This
increase was mainly due to the change in exchange differences on translating foreign operations included in “Other
components of equity.”(3) Outlook for the fiscal year ending March 31, 2023
There are uncertainties about the business environments surrounding us and developments in exchange markets.
Therefore, we have not reviewed the forecast of its consolidated financial performance for the year ending March 31,
2023 announced on April 27, 2022.

English translation of "KESSAN TANSHIN" originally issued in Japanese32. Consolidated Financial Statements (Unaudited)(1) Consolidated Statement of Financial Position
Yen (millions)
As of March 31, 2022
As of June 30, 2022
Composition ratio

Composition ratio

ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................................

71,057

108,332

Trade and other receivables ..............................

117,541

114,950

Inventories ........................................................

475,128

523,678

Other financial assets ........................................

5,281

6,093

Other current assets ..........................................

15,952

19,653

Total current assets ........................................

684,959

68.0%

772,706

69.5%

NON-CURRENT ASSETS:
Property, plant and equipment, at cost ..............

243,636

258,978

Goodwill and intangible assets .........................

10,085

10,212Other financial assets ........................................

41,54541,751Retirement benefit assets ..................................

11,286

11,213

Deferred tax assets ............................................

12,23813,458Other non-current assets ...................................

3,748

3,793

Total non-current assets .................................

322,538

32.0%

339,405

30.5%

Total assets ..............................................................

1,007,497

100.0%

1,112,111

100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese

4Yen (millions)
As of March 31, 2022
As of June 30, 2022
Composition ratio

Composition ratio

LIABILITIES AND EQUITY
LIABILITIESCURRENT LIABILITIES:
Trade and other payables ................................

67,274

76,169Borrowings .....................................................

79,674

136,563

Other financial liabilities.................................

9,888

14,402

Income taxes payable ......................................

14,767

7,862

Provisions .......................................................

4,381

4,700

Other current liabilities ...................................

48,181

44,291

Total current liabilities .................................

224,16522.2%

283,987

25.6%

NON-CURRENT LIABILITIES:
Retirement benefit liabilities .............................

3,160

3,319

Other financial liabilities.................................

13,954

15,920

Provisions .......................................................

1,595

1,663

Deferred tax liabilities.....................................

11,88814,894

Other non-current liabilities ............................

205

200

Total non-current liabilities ..........................

30,802

3.1%

35,996

3.2%

Total liabilities .......................................................

254,96725.3%

319,983

28.8%

EQUITY
Share Capital ...................................................

23,80523,805

Capital Surplus ................................................

45,58545,594Retained earnings ............................................

640,577

634,440

Treasury shares ...............................................

(11,540)(11,541)

Other components of equity ............................

47,91793,442

Total equity attributable to owners of the parent ...

746,34474.1%

785,740

70.7%

NON-CONTROLLING INTEREST .....................

6,186

0.6%

6,388

0.5%

Total equity ............................................................

752,530

74.7%

792,128

71.2%

Total liabilities and equity .....................................

1,007,497

100.0%

1,112,111

100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese5(2) Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income
Consolidated Statements of Profit or Loss
Yen (millions)
For the three months
For the three months
ended June 30, 2022
ended June 30, 2021
Ratio to revenue

Ratio to revenue

REVENUE...............................................................................

185,297 100.0%

195,348 100.0%

Cost of sales .............................................................................

(122,933) (66.3%)(139,075) (71.2%)

GROSS PROFIT......................................................................

62,364

33.7%

Selling, general, administrative and others, net .......................

(33,982) (18.4%)(41,045) (21.0%)

OPERATING PROFIT ............................................................

28,382

15,228Financial income......................................................................

1,623

836

Financial expenses ...................................................................

(140)

(345)

PROFIT BEFORE INCOME TAXES .....................................

29,865

Income tax expenses ................................................................

(8,049)PROFIT ...................................................................................

21,816

11.8%

10,436

5.3%

Owners of the parent................................................................

21,612

11.7%

10,563

5.4%

Non-controlling interests .........................................................

204

0.1%

(127)

(0.1%)

15.3%

16.1%

56,27328.8%
7.8%

15,7198.0%(5,283)

Profit attributable to:Consolidated Statements of Comprehensive Income
Yen (millions)
For the three months
For the three months
ended June 30, 2022
ended June 30, 2021
21,816

10,436through other comprehensive income (loss) ............................

(485)

(534)

Total of items that will not be reclassified to profit (loss) ...........

(485)

(534)

Exchange differences on translating foreign operations ..........

8,130

46,523

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

8,130

46,523

Total other comprehensive income (loss), net of tax ...................

7,645

45,989COMPREHENSIVE INCOME ...................................................

29,461

56,425

Owners of the parent ................................................................

29,17356,223

Non-controlling interests .........................................................

288

202

PROFIT .......................................................................................
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Items that will not be reclassified to profit (loss)
Equity financial goods measured at fair value

Items that may be reclassified to profit or loss

Comprehensive income attributable to:English translation of "KESSAN TANSHIN" originally issued in Japanese6(3) Consolidated Statement of Changes in Equity
Yen (millions)
For the three months ended June 30, 2021
Equity attributable to owners of the parent
SharecapitalBalance at April 1, 2021

CapitalSurplus23,80545,559Profit for the period

Retainedearnings

TreasurysharesOther
componentsof equity

588,644(11,543)

11,390Comprehensive income--

Dividends paid

21,612-

5,471

663,326

21,612

204

21,816

7,561

7,561

84

7,645

7,561

29,173288

29,461(16,020)(16,020)

(2)

(2)

10

10

(2)

Share-based paymenttransaction

10

Total amounts of transactions
with owners

Total
equity657,855(16,020)

Purchase of treasury shares

Balance at June 30, 2021

Total

21,612Other comprehensive income

NonControllinginterest-

10(16,020)(2)-(16,012)-(16,012)23,80545,569594,236(11,545)

18,951

671,016

5,759

676,775

Yen (millions)
For the three months ended June 30, 2022
Equity attributable to owners of the parent
SharecapitalBalance at April 1, 2022

CapitalSurplus23,80545,585

Profit for the period

Retainedearnings

TreasurysharesOther
componentsof equity

640,577(11,540)

47,917

Comprehensive income--

Dividends paid

10,563-

Balance at June 30, 2022

752,530

10,563(127)

10,43645,66045,660329

45,98945,66056,223

202

56,425(16,835)(16,835)

(1)

(1)

9

9

(135)

-

-

(1)

Share-based paymenttransaction
Transfer from othercomponents of equity toretained earnings
Total amounts of transactions
with owners

6,186(16,835)

Purchase of treasury shares
9

135

Total
equity746,344

10,563

Other comprehensive income

NonControllinginterest

Total

-

9

(16,700)

(1)

(135)

(16,827)-(16,827)

23,80545,594

634,440(11,541)

93,442785,740

6,388

792,128

English translation of "KESSAN TANSHIN" originally issued in Japanese7(4) Consolidated Statements of Cash Flows
Yen (millions)
For the three months
For the three months
ended June 30, 2022
ended June 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:Profit ....................................................................................................

21,816

10,436

Depreciation and amortization .............................................................

4,727

5,528

Income tax expenses ............................................................................

8,049

5,283

Financial income and expenses............................................................

(1,483)(491)

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

(84)

266

Decrease (increase) in trade and other receivables ..............................

(4,235)

8,819

Decrease (increase) in inventories .......................................................

(35,484)(10,016)

Increase (decrease) in trade and other payables ...................................

726

4,131

Increase (decrease) in retirement benefit assets and liabilities ............

387

Decrease (increase) in guarantee deposits ...........................................

(1,115)-

Other ....................................................................................................

(2,705)(576)

Subtotal ..........................................................................................

(9,785)23,467

Dividends received ..............................................................................

446

448

Interest received ...................................................................................

129

182

Interest paid .........................................................................................

(141)

(332)

Income taxes paid ................................................................................

(9,369)(12,091)

Cash flows from operating activities .............................................

(18,720)

11,674Purchase of non-current assets .............................................................

(14,279)(11,580)

Proceeds from sales of non-current assets ...........................................

118

70

Purchase of investments ......................................................................

(243)

(0)

Proceeds from sales and redemption of investments ..............................

204

803

Payments into time deposits ................................................................

(5,384)(330)

Proceeds from withdrawal of time deposits .........................................

11,088908

Other ....................................................................................................

(58)

(230)

Cash flows from investing activities ..............................................

(8,554)(10,359)

Net increase (decrease) in short-term borrowings .............................

(1,069)55,468Purchase and sales of treasury shares, net ...........................................

(2)

(1)

Cash dividends paid .............................................................................

(16,020)(16,835)

Repayment of lease liabilities ..............................................................

(836)(1,130)

Other ....................................................................................................

1,042

1,075

Cash flows from financing activities .............................................

(16,885)

38,577

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS ......................................................................

1,538(2,617)NET CHANGE IN CASH AND CASH EQUIVALENTS .................

(42,621)37,275

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ...

148,640

71,057

CASH AND CASH EQUIVALENTS, END OF PERIOD .................

106,019

108,332

CASH FLOWS FROM INVESTING ACTIVITIES:CASH FLOWS FROM FINANCING ACTIVITIES:English translation of "KESSAN TANSHIN" originally issued in Japanese8(5) Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
Segment Information
Yen (millions)
For the three months ended June 30, 2021
North
Asia
Total
Other
America

Eliminations

Consolidated

22,46385(188,083)

185,297-

350,832

22,548(188,083)

185,297

26,406

2,309

(333)

28,382

Yen (millions)
For the three months ended June 30, 2022
North
Asia
Total
Other
America

Eliminations

Consolidated

Japan

EuropeInter-segment ............

34,45087,09692,327
4,685

29,147
1,487

6,910
94,730162,834
187,998

Total ................

121,546

97,012

30,634

101,640

Operating profit ............

9,392

11,460

1,584

3,970

Revenue:
Externalcustomers ..................

Japan

EuropeInter-segment ............

35,73464,29795,084
4,372

28,512
1,316

8,203
57,623

167,533
127,608

27,815
177(127,785)

195,348-

Total ................

100,031

99,45629,82865,826295,141

27,992(127,785)

195,348

Operating profit (loss)...

5,796

6,251

(232)

3,386

15,201

2,061(2,034)

15,228

Revenue:
Externalcustomers ..................

English translation of "KESSAN TANSHIN" originally issued in Japanese93. SUPPORT DOCUMENTATION (CONSOLIDATED)(1) Consolidated Financial Results and Forecast
Yen (millions)
For the three months
For the three months
ended June 30, 2022
ended June 30, 2021
Revenue ...............................................................................................
Domestic .........................................................................................
Overseas ..........................................................................................
Operating profit ...................................................................................
Profit before income taxes ...................................................................
Profit attributable to owners of the parent ...........................................
Profit attributable to owners of the parent per share (Yen) ..................
Number of Employees .........................................................................

(%)

(%)

185,297 45.9
30,053 18.7
155,244 52.7
28,382 82.3
29,865 81.3
21,612 87.6
79.59
19,210195,348
5.4
31,414
4.5
163,934
5.6
15,528 (46.3)
15,719 (47.4)
10,563 (51.1)
38.90
20,107

Yen (millions)
For the year ending
For the year ended
March 31, 2023
March 31, 2022
(Forecast)
Revenue ..............................................................................................
Domestic ........................................................................................
Overseas .........................................................................................
Operating profit ..................................................................................
Profit before income taxes ..................................................................
Profit attributable to owners of the parent ..........................................
Profit attributable to owners of the parent per share (Yen) .................
Number of Employees ........................................................................

(%)

(%)

739,260 21.5
118,050
4.4
621,210 25.4
91,728
3.7
92,483
6.1
64,7704.4
238.54
20,233740,000
0.1
120,000
1.7
620,000(0.2)
85,000(7.3)
83,000(10.3)
59,000(8.9)
217.29-Notes:
1. Please refer to 1. Overview of operating results Section 3 “Outlook for the fiscal year ending March 31, 2023” on page 3.
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, and profit
attributable to owners of the parent compared to the corresponding period of the previous year.

English translation of "KESSAN TANSHIN" originally issued in Japanese10

(2) Consolidated Revenue by Geographic Area
For the three months
ended June 30, 2021

Yen (millions)
For the three months
ended June 30, 2022

For the year ended
March 31, 2022

(%)

(%)

(%)

Japan ................................................................
30,05318.7
31,4144.5
118,050
4.4
Europe..............................................................
91,39757.1
94,204
3.1
352,470
24.7
North America .................................................
28,61844.1
27,850(2.7)
112,248
23.4
11,592
13.4
49,196
25.1
Asia ..................................................................
10,225
13.6
Central and South America ..............................
9,680 133.1
11,97723.7
41,76542.0
Oceania ............................................................
12,05639.3
14,97024.2
51,579
24.9
3,341
2.2
13,952
20.5
The Middle East and Africa .............................
3,268
77.4
Total .................................................................
185,29745.9
195,348
5.4
739,260
21.5
Notes: The table above sets forth Makita's consolidated revenue by geographic area based on the customer’s location forthe periods presented. Accordingly, it differs from “Segment Information” on page 9.
The table shows the changes in the percentage ratio of revenue compared to the corresponding period of the previous
year.

(3) Exchange Rates
Yen
For the threemonths ended
June 30, 2021

For the threemonths ended
June 30, 2022

109.52131.9416.96

129.73138.26
19.60

USD/JPY ................................................
EUR/JPY ................................................
RMB/JPY ...............................................

For the year
ended March 31,
2022
112.39130.5517.51

For the year
ending March
31, 2023(Forecast)
120
130
18.9

(4) Production Ratio (unit basis)
For the threemonths ended
June 30, 2021
Composition ratio

Domestic .....................................................................
Overseas .....................................................................

8.0%
92.0%

For the threemonths ended
June 30, 2022
Composition ratio

9.2%
90.8%

For the year
ended
March 31, 2022
Composition ratio

7.0%
93.0%

(5) Consolidated Capital Expenditures, Depreciation and Amortization, and R&D costs
Yen (millions)

Capital expenditures ..................
Depreciation and amortization ...
R&D costs .................................

For the threemonths ended
June 30, 2021

For the threemonths ended
June 30, 2022

For the year
ended
March 31, 2022

For the year
endingMarch 31, 2023
(Forecast)

14,2803,974
3,433

11,5804,481
3,703

59,937
17,63914,14540,00020,00015,000English translation of "KESSAN TANSHIN" originally issued in Japanese

11