Makita : Announcement of Absorption-Type Merger of Consolidated Subsidiary (Simplified/Short Form Merger)

For immediate release

	September 23, 2020
Company name:	Makita Corporation
Representative:	Munetoshi Goto, President, Representative Director
Stock ticker code:	6586

Announcement of Absorption-Type Merger of Consolidated Subsidiary

(Simplified/Short Form Merger)

Makita Corporation (hereinafter referred to as "Makita") is pleased to announce that at a meeting of the Board of Directors held today it resolved to conduct an absorption-type merger of Amadera Pneumatics Co., Ltd. (hereinafter referred to as "Amadera Pneumatics"), a consolidated subsidiary of Makita.

Because the merger is an absorption-type merger of Makita's wholly-owned subsidiary, disclosure items and details are partially omitted.

I. Purpose of the merger

As a global supplier of a comprehensive range of tools for creating comfortable homes and living environments, including cordless power tools, battery-operated outdoor power equipment and pneumatic tools, Makita has diverse product lines of pneumatic tools (such as air nailers and air compressors). With the goal of further strengthening its business base, Makita turned Amadera Pneumatics, which manufactures and markets air compressors used for nailing at construction sites, etc., into a wholly owned subsidiary on March 29, 2019.

In order to respond to changes in the business environment in a flexible and agile manner and to further streamline group-wide management, Makita has decided to conduct an absorption-type merger of Amadera Pneumatics, effective June 1, 2021.

II. Outline of merger
(1) Schedule
Board resolution on the merger:	September 23, 2020
Execution of agreement:	September 23, 2020
Scheduled effective date of merger:	June 1, 2021

1. • Since this merger is a "simplified merger" for Makita under Article 796, paragraph 2 of the Companies Act, and a "short-form merger" for Amadera Pneumatics under Article 784, paragraph 1 of the same Act, neither companies will hold general meeting of shareholders for approval of this merger.
2. Method of merger

In this merger, Makita is a surviving company, and Amadera Pneumatics is dissolved and absorbed into the surviving company.

(3) Details of allocations related to the merger

Since Amadera Pneumatics is a wholly-owned subsidiary of Makita, there will be no allocation of shares or other funds with the merger.

1. Handling of share options and bonds with share options of the absorbed company Not applicable

English Translation of press release originally issued in Japanese

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Ⅲ. Overview of the parties to the merger (As of March 31, 2020)

		Surviving Company	Extinct Company
(1)	Company name	Makita Corporation		Amadera Pneumatics Co., Ltd.
(2)	Head office	3-11-8,Sumiyoshi-cho, Anjo, Aichi,	2-50-12Nishi-rokugo,Ohta-ward, Tokyo,
		Japan		Japan
(3)	Title and name of	Munetoshi Goto, President and	Tadayoshi Torii, Representative Director
	representative	Representative Director
(4)	Principal	Production and sales of electric power	Production and sales of industrial
	business	tools, gardening equipment, pneumatic	compressors
	tools and household euipment
(5)	Capital stock		24,206 million yen		32 million yen
(6)	Date of		December 10, 1938		April 26, 1952
	incorporation
(7)	Number of		280,017,520 shares		64,000 shares
	shares issued
(8)	Fiscal year - end		March 31		March 31
(9)	Major	The Master Trust Bank of Japan, Ltd.
	shareholders and	(Trust account)	7.96％
	shareholding	Japan Trustee Services Bank, Ltd. (Trust
	ratio*1	account)	4.18％	Makita Corporation	100.00％
		Maruwa, Ltd.	3.18％
		MUFG Bank, Ltd.	3.10％
		Japan Trustee Services Bank, Ltd. (Trust
		account 9)	2.65％
(10)	Financial	Fiscal year - end	March 2020	Fiscal year - end	March 2020*2
	position and		(consolidated,		(non-consolidated,
	operating		IFRS)		Japan GAAP)
	performance in	Total equity	575,748 million yen	Net assets	805 million yen
	the previous	Total assets	674,564 million yen	Total assets	1,095 million yen
	business year	Equity attributable	2,104.01 yen	Net assets per share	12,582.58 yen
		to owners of the
		parent per share
		Revenue	492,617 million yen	Net sales	846 million yen
		Operating profit	64,046 million yen	Operating income	(24 million yen)
		Profit before	66,008 million yen	Ordinary income	(23 million yen)
		income taxes
		Profit attributable to	47,731 million yen	Net Income	2 million yen
		owners of the parent
		Earnings per share	175.80 yen	Net Income per share	25.24 yen
		(Basic)

*1 The shareholding ratio is calculated by subtracting the number of treasury stock as of March 31, 2020 (8,500,530 shares).

*2 Financial results for the fiscal year ended March 2020 are for eight months from August 2019 to March 2020.

English Translation of press release originally issued in Japanese

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Ⅳ. Status after merger

After the merger, no change will occur to the company name, head office, title and name of the representative, principal business, capital stocks and the account closing date of Makita.

Ⅴ. Future prospect

Since this transaction is a merger of a wholly-owned subsidiary, it will have minor effect on the consolidated results of Makita.

English Translation of press release originally issued in Japanese

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