FYE2020 Operating Results · 7 Operating profit Cost of sales Sales general and administration expense 13 FYE2019 FYE2020 Variance Revenue ¥ 490.6 billion ¥ 492.6 billion +0.4%

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FYE2020Operating Results

Munetoshi GotoPresident, Representative Director

(Fiscal Year ended March 31, 2020)

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FYE2020 Results

Variance to FYE2019

Revenue ¥ 492.6 billion + 0.4%

Domestic ¥ 100.7 billion + 9.3%

Overseas ¥ 391.9billion - 1.6%

Overseas revenue ratio: 79.6% (FYE2019: 81.2%)

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3

Revenue by Geographic Area

74.4 82.6 92.1 100.7

169.0

202.0213.3 216.2

66.1

73.972.5 72.3

40.1

44.140.9 39.0

23.1

27.927.8 26.0

25.1

31.330.2 28.4

17.2

15.5 13.8 10.0

0

100

200

300

400

500

FYE17 FYE18 FYE19 FYE20

Mid-East/Africa

Oceania

Central &SouthAmerica

Asia

NorthAmerica

Europe

Japan

Yen inbillions 492.6

490.6477.3

415.0

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Foreign Exchange Rate

FYE2019 FYE2020 Variance

USD ¥ 110.92 ¥ 108.702.0%

Appreciation

EUR ¥ 128.44 ¥ 120.815.9%

Appreciation

RMB ¥ 16.54 ¥ 15.605.7%

AppreciationWeighted average change for all foreign currencies:

4.9% appreciated in the value of the yen

Effect on revenue: Decrease of ¥20.3 billion

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5

-5%

0%

5%

10%

15%

20%

Japan

FYE2019 FYE2020

1H 2H 1H 2H

JapanFYE2019 + 11.6%FYE2020 + 9.3%

Revenue Growth (Local Currency Basis)

6


-5%

0%

5%

10%

15%

FYE2019 FYE2020

1H 2H 1H 2H

Western EuropeFYE2019 + 6.2%FYE2020 + 4.3%

Eastern Europe/ RussiaFYE2019 + 10.6%FYE2020 + 12.4%

Europe +7.2%

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7

-10%

-5%

0%

5%

10%

North AmericaFYE2019 -1.6%FYE2020 +1.9%

AsiaFYE2019 -6.2%FYE2020 - 2.8%

North America, Asia

FYE2019 FYE2020

1H 2H 1H 2H


8

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Central & SouthAmericaFYE2019 + 12.9%FYE2020 + 3.5%

Mid-East/AfricaFYE2019 - 10.8%FYE2020 - 25.9%

OceaniaFYE2019 + 2.2%FYE2020 + 2.4%

Central & South America, Oceania, Mid-East/Africa

FYE2019 FYE2020

1H 2H 1H 2H


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9

Outdoor Power Equipment (OPE)

• High power, low noise and less vibration

• Delivers the similar performance demanded for 30mL Engine Grass Trimmer

• Light weight, low noise, high power

• Delivers higher performance compared with engine products

• Enables to use machine comfortably in an upright standing posture

• Lightest weight in the class and delivers high power

• Surpassed the performance demanded for 22mL Engine Hedge Trimmers

Examples of New Products introduced in this fiscal year

255mm Cordless Grass Trimmer Series Cordless Hedge Trimmer

Cordless Pole Hedge Trimmer

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Lithium-ion Battery ProductsExamples of New Products introduced in this fiscal year

High power leading to Next-generation

Excellent wave receiving sensitivity and large 10 inch liquid crystal panel

Enables easy fastening with high torque

40Vmax series

Cordless TV with Radio

Cordless Impact Wrench

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270 289 290 308

298 414 512 577 132 124

134 102

1,874

2,179 2,013 1,778

69

105 109 107

0

1,000

2,000

3,000

FYE2017 FYE2018 FYE2019 FYE2020

Central &SouthAmericaAsia

NorthAmerica

Europe

Japan

10 thousands of units

2,8723,0583,111

2,643

Production Quantities by Geographic Area

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March 31, 2019 ￥219.9 billion

March 31, 2020 ¥ 214.6 billion

Decrease of Inventories ¥ 5.3 billion

Increase of inventories on hand ¥ 9.1 billion

Decrease by translation into yen ¥ 14.4 billion

Inventories

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Operating profitCost of salesSales general and administration expense

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Revenue ¥ 490.6 billion ¥ 492.6 billion +0.4%

Cost of Sales ¥ 313.4 billion ¥ 323.8 billion +3.3%

Cost of Sales Ratio 63.9% 65.7%UP

1.8 points

SG&A Expenses ¥ 98.9 billion ¥ 104.8 billion +5.9%

SG&A Expenses Ratio 20.1% 21.3%Up

1.2 points

Operating Profit ¥ 78.3billion ¥ 64.0 billion -18.2%

Operating Profit Ratio 16.0% 13.0%Down

3.0 points

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ExchangeRate

-4.9

Analysis of Operating Profit

SG&A

-9.7

Sales Volume

+7.7

Others

-5.9

Yen inbillions

FYE2019 FYE202014

78.3

64.0

Cost

-1.5

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Financial Income,Profit Before Income Taxes, Profit Attributable to Owners of the Parent, EPS


Financial Income ¥1.6 billion ¥2.0 billion ¥0.4 billion

Profit Before Income Taxes ¥79.9 billion ¥66.0 billion - 17.4%

Profit Attributable to Owners of the Parent

¥55.8 billion ¥47.7 billion - 14.4%

EPS ¥205.37 ¥175.80 - 14.4%

15.0

23.9

44.4

FYE18

FYE19

FYE20

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Capital Expenditure (Yen in billions)

Depreciation and Amortization(Yen in billions)

R&D Cost (Yen in billions)

10.8

11.3

12.1

FYE18

FYE19

FYE20

10.9

11.3

11.6

FYE18

FYE19

FYE20

Capital Expenditure,Depreciation and Amortization, R&D Cost

Major capital investment in FYE 2020Okazaki Plant: Distribution warehouse (building)Romania Plant: Additional factory building (land / building)China Plant: Additional factory building (land / building)U.S.: Distribution warehouse (land / building)

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• Moving forward as a manufacturer of cordless products

• Expand sales, after sales services and distribution networks

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Makita’s CommitmentsMakita’s Commitments

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Cordless Impact Wrench

Introduction of 40Vmax series

achieving higher power

High voltage system

Makita’s Commitments

Moving forward as a manufacturer of cordless products

Cordless Angle Grinder

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Supply power with four 18V batteries

Portable Battery Pack

Enabling operators to work longer hours

High capacity system



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CordlessCooling Box Cordless Heated

Blanket seriesCordless Fan Jacket

series

Series of products also used at the time of disaster or outdoor activities

CordlessTV with Radio

Cordless LED Work Light



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Cordless Stick Vacuum Cleaner

Backpack Vacuum Cleaner

Cordless Wet/Dry Vacuum Cleaner

Cordless Sprayers

Robotic Cleaner

Cultivate commercial cleaning market



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“Hachimura Rap” movie clip

Advertising for TV100

Cordless TV with Radio

“Robot x Rui” movies clip

Advertising for 40Vmax series

Marketing and Advertising



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Lead to Cordlessfor wide range of products

Resolve social challenges such as environmental issues

Reduction of single use plastics used to package our productswe will further shift to more environment-friendly materials,

including paper.

Further initiatives

Expand the company which does not rely only on single area of business


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Expansion of sales, after sales services and distribution networks

List of new sites (including logistics)

Expansion and establishment of logistics bases looking at an increase in the handling of large-sized products

Improve customer satisfactionthrough rapid logistics services

Area City

Japan Isahaya （Nagasaki）※ Open in April 2020

Europe Berlin（Germany）Utrecht（Netherland）Minsk（Belarus）

North America Dallas (U.S.)※ Expansion of warehouse

Asia Vadodara, etc.（India）Yunlin, etc.（Taiwan）Hanoi（Vietnam）

Central & South America

Antofagasta（Chile）

Oceania Christchurch （New Zealand）


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Advantages of expanding networks

Speedy repair services and logistics

Increase opportunities for potential customers to experience Makita products

Grasp market needs

Deliver speedy sales support to dealers

Increase fans of Makita by strengthening local

community- and customers based sales and after sales

services


Expansion of sales, after sales services and distribution networks

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FYE2021 Forecast

We will announce the financial forecast as soon as possible.

FYE2021 Forecast ： TBD

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COVID-19

A decline in tool demand may lead to a decrease in revenue and profits.

Covid-19 outbreak especially in Europe, Japan, and North America, where sales ratios are high, could lead to a significant impact on performance.

If Covid-19 spreads again in China where the production ratio is high and the suppliers are concentrated.

Possibly lead to a significant impact on the Group's production and sales activities.

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Dividend

Dividend Policy Dividend Payout Ratio: 30% or greater

FYE2020 FYE2021(Forecast)

Profit attributable to owners of the parent

¥47.7 billion TBD

EPS ¥175.80 TBD

Special Circumstance ― ―Annual Cash Dividend

Per Share 53 yen TBD（Note）

Interim Dividend 10 yen 10 yen

Year-end Dividend 43 yen TBD（Note）

Payout Ratio 30.1% 30% or greaterNote: In April 2021, the Board of Directors plans to propose a dividend equivalent to at least 30% of profit attributable to owners of the parent.

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https://www.makita.biz/

FORWARD-LOOKING STATEMENTSThis document contains forward-looking statements based on Makita's own projections and estimates. The power tools market, where Makita is mainly active, is subject to the effects of rapid shifts in economic conditions, demand for housing, currency exchange rates, changes in competitiveness, and other factors. Due to the risks and uncertainties involved, actual results could differ substantially from the content of these statements. Therefore, these statements should not be interpreted as representation that such objectives will be achieved.

FYE2020 Operating Results · 7 Operating profit Cost of sales Sales general and administration expense 13 FYE2019 FYE2020 Variance Revenue ¥ 490.6 billion ¥ 492.6 billion +0.4%

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