First Half of FYE2023
Operating Results(Six months ended September 30, 2022)
Munetoshi Goto
President, Representative Director

November 8, 2022
1

FYE2023 1H Results
Variance toFYE2022 1HRevenue¥ 391.3 billion+ 7.4%

Domestic¥ 61.8 billion+ 2.0%

Overseas¥ 329.5 billion+ 8.5%

Overseas revenue ratio: 84.2%(FYE2022 : 84.0%)

Effective Exchange Rate
Weighted average change for all foreign currencies
13.4% depreciated in the value of the yen
Effect on revenue: Increase of ¥ 38.9 billion

21

Revenue Growth (Local Currency Basis)
JapanJapan20%

FYE2022 1H +8.7%
FYE2022 2H +0.3%
FYE2023 1H +2.0%

15%
10%
5%0%-5%FYE2021

FYE2022

2H

1H

FYE2023
2H

1H

3

Revenue Growth (Local Currency Basis)
Europe-8.9%

40%

Eastern Europe

30%

FYE2022 1H +33.1%
FYE2022 2H +20.0%
FYE2023 1H - 1.1%

20%
10%

Western Europe
FYE2022 1H +21.7%
FYE2022 2H +5.6%
FYE2023 1H -14.1%

0%
-10%
-20%

FYE20212H

FYE20221H

FYE2023
2H

1H

42

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

35%

FYE2022 1H +21.0%
FYE2022 2H +11.5%
FYE2023 1H -1.3%

30%
25%
20%
15%

Asia

10%

FYE2022 1H +14.0%
FYE2022 2H +21.1%
FYE2023 1H +10.7%

5%0%
-5%
FYE20212H

FYE20221H

FYE2023
2H

1H

5

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

60%

FYE2022 1H +59.8%
FYE2022 2H +15.8%
FYE2023 1H -3.4%

50%
40%
30%

Oceania20%

FYE2022 1H +7.6%
FYE2022 2H +20.3%
FYE2023 1H +11.2%

10%0%

Mid-East/Africa-10%-20%

FYE20212HFYE2022
1H

FYE2023
2H

1H

FYE2022 1H +47.1%
FYE2022 2H -5.4%
FYE2023 1H -11.7%
63

Outdoor Power Equipment (OPE)The compound annual growth rate (CAGR)
for cordless OPEs is50% or more (FYE2017 to FYE2022)

The cordless OPE lineup is gradually expanding.
7

Lithium-ion Battery Products
Changes in Sales Composition Ratio（FYE2015 to FYE2022）
100%
80%

AC, Air, Engine-powered products, etc.

60%
40%

Lithium-ion Battery Products

20%0%Parts, Repairs and Accessories

Aggressively expand the 40Vmax series lineup
The series that can be expected tofurther promote cordless products
84Production Quantities byGeographic Area
10 thousandsof units

2,545
107

2,400

Central &SouthAmerica

2,460

Asia

80

North
America

1,560

1,800

1,578

1,570

1,200

600

01H

79

64

590

586

191

160

FYE2022

2H53

Europe

1,011

Japan

46331
119
FYE2023
1H9

Cash Flow
FYE2022 1H

FYE2023 1H

1. Cash flows fromoperating activities- ¥29.7 billion- ¥ 10.3 billion

2. Cash flows frominvesting activities- ¥2.8 billion- ¥ 20.4 billion

1+2Free cash flows- ¥32.5 billion- ¥ 30.7 billion

3. Cash flows fromfinancing activities- ¥ 13.6 billion+ ¥ 78.6 billion

4. Effect of exchange ratechanges on cash andcash equivalents+ ¥ 1.9 billion- ¥ 4.9 billion

5. Net change in cash andcash equivalents- ¥ 44.2 billion+ ¥ 43.0 billion 105

Operating Profit,
Cost of Sales, SG&A
FYE2022 1H
Revenue
Cost of Sales

FYE2023 1H

Variance+ 7.4%
- ¥245.5 billion - ¥288.6 billion + 17.5%¥364.2 billion¥391.3 billion- 67.4%- 73.8%

Cost of Sales
Ratio
SG&AExpenses- ¥66.5 billion

SG&A Ratio- 18.3%Operating Profit¥52.2 billion

Operating ProfitRatio

14.3%

Up
6.4 points- ¥80.8 billion + 21.4%- 20.6%Up
2.3 points¥21.9 billion - 58.0%
5.6%

Down
8.7 points
11Analysis of Operating Profit
Yen inbillions

Others Cost up+1.3 -12.9

SG&A-7.6 ExchangeRate52.2-7.3

Sales
Volume-3.8

21.9
FYE2022 1H

FYE2023 1H

126

Financial Income (Expenses),Profit Before Income Taxes,
Profit Attributable to Owners of the Parent
FYE2022 1H

FYE2023 1H

Variance

FinancialIncome(Expenses)¥ 0.4 billion- ¥ 3.7 billion - ¥ 4.1 billion

Profit Before
Income Taxes¥ 52.6 billion¥ 18.2 billion- 65.3%

ProfitAttributable toOwners of theParent¥ 37.8 billion¥ 11.1 billion- 70.7%¥ 139.29¥ 40.80- 70.7%EPS

13Capital Expenditure,Depreciation and Amortization,
R&D Cost
FYE2023 1H Main Capital Expenditure

Capital Expenditure (Yen in billions)
23.4

FYE21 1H

28.2

FYE22 1H

23.0

FYE23 1H

Depreciation and AmortizationR&D Cost

(Yen in billions)

FYE21 1H
FYE22 1H
FYE23 1H

Japan： Distribution Center (Okayama)
Thailand Plant： Construction of new plant building(Yen in billions)

6.4

FYE21 1H

8.1

FYE22 1H

9.9

FYE23 1H

6.3
6.9
7.5
147

Makita’s Commitments ESG
 Moving forward as a supplier of acomprehensive range of cordless products
 Carbon neutrality
 Strengthening Sales/Production systems

15Makita’s Commitments ESG
Moving forward as a supplier of a comprehensive range ofcordless products

Expand user base by expanding lineup
Lead to further sales expansion
Power tools
Outdoor Power
Equipment (OPE)

Cleaning
Around the workplace
Outdoor activities
Disaster prevention

Solve social issues through cordless products

168

Makita’s Commitments ESG
Carbon neutrality
Supporting SDGs

Focus oncordless OPE

Shift from Engine-powered
products to cordlessproducts

Reduce environmental impact by eliminating
exhaust gas during use

Engine-powered

Battery-powered

Next pillar of our future businessin addition to Power tools

17

Makita’s Commitments ESG
Strengthening Sales/Production systems
Main bases newly established in the first half
AreaCityJapanUruma（with Okinawa Branch）* Okayama (Distribution Center,branch and sales office),
Tokorozawa opened in October,
2022

Europe Frankfurt, Hamburg (Germany)

Okayama Distribution Center（with branch/sales office）

Establishing systems to provide

Supporting SDGs

products and services quickly and stably

Contributing to the creation of affluent communities
and daily lives around the world189

Makita’s Commitments ESG
Strengthening Sales/Production systems
Execution of high level ofcapital investment, including
for enhancement of
production capacityand distribution functions➡ System development for
future growth is largely completed

Capital Expenditure(Yen in billions)
706050403020100
FYE2019

FYE2020

FYE2021First Half

FYE2022

Second Half

FYE2023

Toward the stage ofpursuing the results ofpast investments
19Forecast of Financial Results
Dividend

FYE2023 Revenue Forecast
Analysis of Operating Profit (Forecast)
FYE2023 Financial Forecast
Production Plan
Inventory Levels
Cash Dividends
2010FYE2023 Revenue Forecast
Variance toFYE2022

Revenue¥ 740.0 billion+ 0.1%

Domestic¥ 120.0 billion+ 1.7%

Overseas¥ 620.0 billion- 0.2%Overseas revenue ratio: 83.8% (FYE2022: 84.0%)

21

Analysis of Operating Profit(Forecast)
Yen inbillions

Sales
Others Volume+18.4 -20.4

Cost up-17.9

ExchangeRate-16.8
SG&A

91.7-15.0

40.0
FYE2022

FYE2023 (Forecast)2211

FYE2023 Financial Forecast
FYE2022

FYE2023

Variance

Operating profit¥ 91.7 billion¥ 40.0 billion- 56.4 %Profit before
income taxes¥ 92.5 billion¥ 34.0 billion- 63.2 %Profit attributable toowners of the parent¥ 64.8 billion¥ 22.0 billion- 66.0 %¥ 238.54¥ 81.02- 66.0 %Capital Expenditure¥ 59.9 billion¥ 40.0 billion- 33.3 %Depreciation
and Amortization¥ 17.6 billion¥ 20.0 billion+ 13.4 %R&D Cost¥ 14.1 billion¥ 15.0 billion+ 6.0 %

EPS

23

Production Plan
10 thousands of units

5,005

5,000

4,000

187

3,959

Central &SouthAmerica
Asia

142
3,148

3,000
2,488

2,550
100

NorthAmerica
Europe

2,000
143

1,665

119

1,000

Japan
1,176

906

75
500

351

304

0
FYE2021

FYE2022210

FYE2023(Forecast)24

12

Inventory Levels
Yen in billions

monthsCOVID-19
influence oninventory policy

600
500

14Number of months in stock at
the end of September 2022:
1011.7 months（Forecast）
12400

8300(Issues)
Aim to increase market
share and improve theMakita brand while
optimizing inventory levels
in response to market
changes.

6200

4Inventories (left axis)

FYE2024

FYE2023 2H

FYE2022

FYE2023 1H

FYE2021

FYE2020

FYE2019

FYE2018

FYE2017

FYE2016

FYE2015

FYE2014

FYE20132
FYE2012100

Inventory months (right axis)

25

Cash Dividends
Dividend Policy

Dividend Payout Ratio: 30% or greater
FYE2022

Profit attributable toowners of the parentEPSFYE2023¥ 64.8 billion ¥ 22.0 billion(Forecast)¥ 238.54¥ 81.02(Forecast)――

Annual Cash Dividend
Per Share¥ 62(Note)

Interim Dividend¥ 10¥ 10Year-end Dividend¥ 72(Note)

30.2%

30% or greater

Special Circumstance

Payout Ratio

Note: In April 2023, the Board of Directors plans to propose a dividend equivalent to at least
30% of profit attributable to owners of the parent.

2613

FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on
Makita's own projections and estimates. Due to the risks anduncertainties involved, actual results could differ substantially fromthe content of these statements. Therefore, these statements should
not be interpreted as representation that such objectives will beachieved.

https://www.makita.biz/

27(Reference)
Exchange rate sensitivity
 EUR¥ 1 depreciation of the yen increases operating
profit by ¥ 1 billion per year.
 USD¥ 1 depreciation of the yen reduces operating
profit by slightly less than ¥ 0.7 billion per year.
 RMB¥ 1 depreciation of the yen reduces operating
profit by slightly less than ¥ 10 billion per year.
2814