Makita Corporation

Consolidated Financial Results

for the nine months

ended December 31, 2021

(IFRS Financial Information)

(English translation of "KESSAN TANSHIN"

originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2021 (Unaudited)

January 31, 2022

Makita Corporation

Stock code: 6586

URL: https://www.makita.biz/

Munetoshi Goto, President, Representative Director

1. Summary operating results of the nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021)

  1. CONSOLIDATED OPERATING RESULTS

Yen (millions)

For the nine months ended

For the nine months ended

December 31, 2020

December 31, 2021

%

%

................................................................Revenue

441,184

18.2

546,831

23.9

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

65,703

29.1

73,233

11.5

....................................Profit before income taxes

65,414

22.9

72,476

10.8

Profit .....................................................................

47,251

21.7

51,819

9.7

Profit attributable to owners of the parent ............

46,890

21.6

51,355

9.5

Comprehensive income ........................................

65,844

113.7

65,327

(0.8)

Profit attributable to

Yen

Owners of the parent per share

.................................................................Basic

172.69

189.13

.............................................................. 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.
  1. SELECTED CONSOLIDATED FINANCIAL POSITION

Yen (millions)

As of March 31, 2021

As of December 31, 2021

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

812,878

902,085

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

663,326

709,938

Equity attributable to owners of the parent...........

657,855

703,915

Ratio of equity attributable to owners of the

80.9%

78.0%

parent to total assets (%).......................................

2. Dividend Information

Yen

For the year ended

For the year ending

March 31, 2022

March 31, 2021

(Forecast)

Cash dividend per share:

Interim.................................................................

10.00

10.00

Year-end ..............................................................

59.00

(Note)

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

69.00

(Note)

Notes:

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

1

English translation of "KESSAN TANSHIN" originally issued in Japanese

3. Consolidated Financial Performance Forecast for the year ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

Yen (millions)

For the year ending March 31, 2022

(%)

Revenue ...................................................................................................

710,000

16.7

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

90,000

1.7

Profit before income taxes .......................................................................

90,000

3.2

Profit attributable to owners of the parent ...............................................

65,000

4.8

Yen

Profit attributable to owners of the parent per share ................................

Notes:

  1. The consolidated financial forecast for the year ending March 31, 2022 has been revised.
  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 in scope 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
  4. Number of shares outstanding (common stock)

1.

Number of shares issued (including treasury stock):

As of December 31, 2021:

280,017,520

2.

Number of treasury stock:

As of March 31, 2021:

280,017,520

As of December 31, 2021:

8,484,933

3. Average number of shares outstanding:

As of March 31, 2021:

8,490,396

For the nine months ended

December 31, 2021:

271,530,440

For the nine months ended

December 31, 2020:

271,523,428

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 "SUPPLEMENT INFORMATION (CONSOLIDATED)", "3. Outlook for the fiscal year ending March 31, 2022" on page 4.
  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 the parent per share after certain adjustments.
    The Board of Directors plans to meet in April 2022 for a report on earnings for the year ending March 31, 2022. 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 2022.

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.

2

English translation of "KESSAN TANSHIN" originally issued in Japanese

SUPPLEMENT INFORMATION (CONSOLIDATED)

1. Overview of operating results

  1. Explanation of Consolidated Operating Results

Looking at the global economic situation during the nine-month period (the "period") ended December 31, 2021, economic and social recovery progressed chiefly in developed countries with the widespread use of COVID-19 vaccines. The outlook for the future remains uncertain, however, with shortages and rising prices due to supply chain disruptions, as well as the resurgence of new cases caused by coronavirus variants.

Our consolidated revenue for this period increased by 23.9% to 546,831 million yen compared with the same period of the previous year with strong sales both in Japan and overseas. Operating profit also increased by 11.5% to 73,233 million yen (operating profit ratio: 13.4%) owing to the increase in revenue, although costs increased due to soaring transportation costs. Profit before income taxes increased 10.8% year-on-year to 72,476 million yen (profit before income taxes ratio: 13.3%), and profit attributable to owners of the parent increased 9.5% to 51,355 million yen (ratio of profit attributable to owners of the parent: 9.4%).

Revenue results by region were as follows:

In Japan, sales of both power tools and outdoor power equipment, particularly lithium-ion battery products, were strong and increased by 6.3% year on year to 88,800 million yen.

In Europe, while stay-at-home demand slowed down, demand for tools at active building and construction sites and sales of cordless outdoor power equipment continued to be strong, resulting in an increase in sales of 27.7% year on year to 261,554 million yen.

In North America, sales of power tools accompanied by strong housing demand and sales of cordless outdoor power equipment were strong, resulting in an increase in sales of 21.7% year on year to 80,614 million yen.

In Asia, COVID-19 cases increased again in various regions affecting our sales activities, but sales in China and Taiwan were strong, resulting in an increase in sales of 23.2% year on year to 35,888 million yen.

In Central and South America, inflation accelerated in many countries; however, sales activities to capture solid demand for tools resulted in an increase in sales of 49.8% year-on-year to 31,515 million yen.

In Oceania, sales increased by 31.7% year on year to 38,317 million yen due to strong demand for tools at building and construction sites despite the impact of lockdowns due to the resurgence of new cases of infection in major cities.

In the Middle East and Africa, sales increased by 37.2% year on year to 10,143 million yen as the demand for tools at building and construction sites in each country was captured although unstable political and economic conditions continued.

  1. Explanation of Consolidated Financial Position

Total assets as of December 31, 2021 increased by 89,207 million yen to 902,085 million yen compared to the balance as of March 31, 2021. This increase was mainly due to the rise in "Inventories" and "Property, plant and equipment."

Total liabilities increased by 42,595 million yen to 192,147 million yen compared to the balance as of March 31, 2021. This increase was mainly due to the rise in "Borrowings" and" Trade payables and other payables."

Total equity increased by 46,612 million yen to 709,938 million yen compared to the balance as of March 31, 2021. This increase was mainly due to the rise in "Retained earnings."

3

English translation of "KESSAN TANSHIN" originally issued in Japanese

  1. Outlook for the fiscal year ending March 31, 2022

We have revised our consolidated financial forecast because sales in the period were stronger than expected in response to demand for tools at building and construction sites. Meanwhile, we have left its previous forecast for profits unchanged, considering the impact of soaring transportation costs, etc.

Revised forecast for consolidated performance of the fiscal year ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

Yen (millions)

Yen

Profit

Profit

attributable to

Revenue

Operating

Profit before

attributable

owners of the

profit

income taxes

to owners of

parent per

the parent

share (Basic)

Forecast announced previously (A) ......

690,000

90,000

90,000

65,000

239.38

Revised forecast (B) ............................

710,000

90,000

90,000

65,000

239.38

Changes (B-A) ......................................

20,000

0

0

0

-

Percentage change ................................

2.9%

0.0%

0.0%

0.0%

-

Actual results for the previous year

ended March 31, 2021 ..........................

608,331

88,464

87,199

62,018

228.41

The above earnings forecast is based on the premise that economic activities will not stagnate again due to restrictions imposed by government following the rebound of the COVID-19 outbreak. The exchange rates assumed for the business forecast are as follows;

[Preconditions]

The above forecast is based on the assumption of exchange rates of 110 yen to the U.S. dollar, 125 yen to the euro and 17.5 yen to the renminbi for the remaining three months period ending March 31, 2022.

The above forecast is based on the assumption of exchange rates of 111 yen to the U.S. dollar, 129 yen to the euro and 17.3 yen to the renminbi for the year ending March 31, 2022.

[Reference]

The exchange rates for previously announced forecasts that we announced on October 28, 2021 were 110 yen to the U.S. dollar, 130 yen to the euro and 17.1 yen to the renminbi for the year ending March 31, 2022.

Note: The above forecast is based on information as available at the present time, and includes potential risks and uncertainties. As a consequence of the factors such as COVID-19 infection status, actual results may vary from the forecast provided above.

4

English translation of "KESSAN TANSHIN" originally issued in Japanese

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Makita Corporation published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 06:10:05 UTC.