Makita : Q4 Financial Results

Makita Corporation

Consolidated Financial Results for the year ended March 31, 2022

(IFRS Financial Information)

(English translation of "KESSAN TANSHIN"

originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS

FOR THE YEAR ENDED MARCH 31, 2022 (Unaudited)

April 27th, 2022

Makita Corporation

Stock code: 6586

URL:https://www.makita.co.jp/

Munetoshi Goto, President, Representative Director

1. Summary operating results of the year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)

(1) CONSOLIDATED OPERATING RESULTS

Yen (millions)

For the year ended

March 31, 2021 %

• Revenue ........................................................................... 608,331 23.5

• Operating profit ............................................................... 88,464 38.1

• Profit before income taxes ............................................... 87,199 32.1

• Profit ................................................................................ 62,684 30.5

• Profit attributable to owners of the parent ....................... 62,018 29.9

• Comprehensive income .................................................... 101,929 561.2

Yen

Profit attributable to owners of the parent per share

(Basic) .........................................................................

(Diluted) ...................................................................... Ratio of profit attributable to owners of the parent

228.41 -

to total equity attributable to owners of the parent (%) ... 10.1%

Ratio of profit before income taxes to total assets (%) .... 11.7%

Ratio of operating profit to revenue (%) ......................... 14.5% Notes:

238.54 - 9.2% 10.2% 12.4%

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 previous year.

Yen (millions)

Yen

(3) CONSOLIDATED CASH FLOWS

Yen (millions)For the year ended March 31, 2021

Net cash provided by (used in) operating activities ..........

64,537

Net cash used in investing activities ................................. (42,913)

(27,891)

Net cash provided by (used in) financing activities .......... (23,036)

52,626

Cash and cash equivalents, end of the fiscal year .............

148,640

71,057

2. Dividend Information

Yen

Cash dividend per share:

Interim .................................................................... Year-end .................................................................. Total ........................................................................

For the year ending March 31, 2023 (Forecast)

59.00 62.00

69.00 72.00

10.00 (Note) (Note)

Yen (millions)Total cash dividend ...................................................... 18,735

Dividend payout ratio (%) ........................................... 30.2% Ratio of total cash dividend attributable to owners of

the parent to total assets (%) ........................................ 3.0%

19,550 30.2% 2.8%

- - -Note: While the Corporation has set forth under the Articles of Corporation of the Corporation that the record date for the payment of dividend shall be the last day of a relevant period, at the present time, the projected amount of dividends as of the said record date has not been determined yet. For further details, refer to "(5) Basic policy regarding profit distribution and cash dividend for fiscal 2022 and 2023" on page 7.

3. Consolidated Financial Performance Forecast for the year ending March 31, 2023

Yen (millions)

For the year ending

March 31, 2023

Note: 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. Others

(1)Changes in important subsidiaries for the fiscal year (Changes in specified subsidiaries accompanied by changes in scope of consolidation): 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): As of March 31, 2022: 280,017,520

As of March 31, 2021: 280,017,520

Makita's earnings releases (KESSAN TANSHIN) are not subject to an audit.

Explanation regarding proper use of business forecasts, and other significant matters

Regarding the assumptions for the forecasts and other matters, refer to "(4) Outlook for the fiscal year ending March 31, 2023" on page 5. 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.

SUPPLEMENT INFORMATION (CONSOLIDATED)

1. Overview of operating results

(1)Explanation of consolidated operating results

Looking at the international economic situation during the fiscal year under review, while economic and social activities have been normalized, particularly in developed countries, in line with the rollout of the COVID-19 vaccine, the future remains uncertain due to shortages of goods and logistics disruptions in the supply chain, rising prices, the resurgence of infections caused by coronavirus mutations, and the growing international tension surrounding the Ukraine issue.

Against this backdrop, our group focused its development efforts on expanding its lineup of rechargeable finished goods, including power tools and outdoor power equipment, in the "40Vmax Lithium-ion Battery" series, which offers high power, long life and high durability.

On the production side, we worked to increase production in response to increasing demand and to promote multi-polarized global production

On the sales side, we focused on increasing the level of the community-based and customer-oriented service framework in order to further strengthen trusting relationships with customers around the world. We strive to deepen and develop the market centered on cordless products.

As a result of favorable sales both in Japan and overseas, our group's consolidated financial results for the fiscal year under review set a new record high, with revenue rising 21.5% over the previous fiscal year to 739,260 million yen. In terms of profit, operating profit increased 3.7% year-on-year to 91,728 million yen (an operating margin of 12.4%) due to an increase in revenue, despite higher costs due to higher transportation costs. Profit before tax increased 6.1% year-on-year to 92,483 million yen (a profit before tax rate of 12.5%), and profit attributable to owners of the parent company increased 4.4% year-on-year to 64,770 million yen (a profit rate attributable to owners of the parent company of 8.7%).

Revenue by region are as follows:

In Japan, sales of both power tools and outdoor power equipment, particularly lithium-ion battery products, were strong and increased by 4.4% compared with the same period of previous year to 118,050 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 24.7% year on year to 352,470 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 23.4% year on year to 112,248 million yen.

In Asia, COVID-19 cases increased again in various regions affecting our sales activities, but sales in Taiwan and Southeast Asia were strong, resulting in an increase in sales of 25.1% year on year to 49,196 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 42.0% year on year to 41,765 million yen.

In Oceania, sales increased by 24.9% year on year to 51,579 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 20.5% year on year to 13,952 million yen as the demand for tools at building and construction sites in each country was captured although unstable political and economic conditions continued.

(Initiatives toward carbon neutrality)

The impact of climate change on society, such as frequent wind and flood disasters, is becoming more serious, and companies are playing an increasingly important role in realizing a decarbonized society. Our company views climate change as an important business issue.

For this reason, our company has prioritized contributing to the solution of climate change issues by, for example, focusing on cordless outdoor power equipment that does not emit exhaust gas when used. However, in order to further

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