Makita : Environmental Report 2021

Environmental

Report

2021

CONTENTS

Corporate Profile············································································· 2 Top Message ················································································· 3 Environmental Management ······························································· 4 Corporate Philosophy ······························································ 4 Environmental Vision······························································ 4 Environmental Policy ······························································ 5 Our Commitment to SDGs ························································ 5

Topics ························································································ 6 Environmental Management System ····················································· 8 Environmental Management Promotion Framework ·························· 8 ISO14001············································································ 8 Environmental Accounting························································ 9 Our Commitment to Creating Environmentally Conscious Products ················ 10 Development of Environmentally Conscious Products ······················· 10 Green Procurement································································ 10 Environmentally Conscious Products··········································· 11 Makita's Cordless Products that Contribute to Solving Social Issues ······· 12

Environmental Action Plan and Achievements········································· 15 Environmental Performance ····················································· 15 Resource Input and Environmental Burden Emitted (Material Balance) ··· 16 CO2 Emissions throughout the Supply Chain ·································· 17 FYE 2021 Achievements Based on Our Environmental Action Plan······· 18

Environmental Initiatives in Our Business Activities ·································· 18 Global Warming Prevention ····················································· 18 Water Usage ······································································· 19 Management of Chemical Substances ·········································· 20 Reduction of Emissions··························································· 20

Environmental Communication with Local Communities ···························· 21 Social Contribution Activities for Local Communities ······················· 21 Our Commitment to Preventing Environmental Risks························ 21

Environmental History ····································································· 22

■Organizations and Topics Covered

This report covers ten organizations in total, namely Makita Corporation, two overseas subsidiaries engaged in production and sales, six subsidiaries engaged in production and one other domestic subsidiary, and covers the topic of environmental protection activities for FYE 2021. The number of employees in the organizations covered in this report represents 74.6 percent of the total number of employees in the Makita Group.

■Period Covered

This report is based on the achievements of activities implemented in FYE 2021 (April 1, 2020, to March 31, 2021). ■Reporting Policy

Our company is engaged in a wide range of environmental protection activities, and this report mainly covers the themes of environmental protection activities that we are focusing our efforts on. In preparing this report, we tried to make sure that those who are not environmental experts will also be able to easily understand the overview of each theme, with the aim to enhance communication with all our stakeholders. In editing and designing the report, we made sure to use appropriate phrasing and colors, and ensured readability.

The company's environmental performance (achievement) data for the period coinciding with the company's fiscal year, which are aggregated as of March 31 every year, are analyzed and the results are published in June.

■Target Audience

All our stakeholders, including customers, business partners, employees, shareholders, local communities, and public institutions ■Publication and Announcement Media

This report is published in PDF format on our company's website and can be downloaded. URL: https://www.makita.biz/

■Report Creation Department and Inquiries (If you have any opinions or comments about this report, please let us know.) Makita Corporation Environment & Facility Control Division Environment Group Email: [e-mail]

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Environmental Report 2021

Corporate Profile

Company Name

■Head Office

Head Office

3-11-8,Sumiyoshi-cho, Anjo,

Aichi 446-8502, Japan

Phone: [phone]

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

Date of Founding

March 21, 1915

Date of Incorporation

December 10, 1938

Revenue

¥608.3 billion (consolidated)

¥378.5 billion (Parent)

Profit Attributable to

¥62.0 billion (consolidated)

Owners of the Parent

¥37.1 billion (Parent)

Paid-in Capital

¥24,206 million

Number of Employees

18,624 (consolidated) 3,086 (Parent)

Description of

Production and sales of electric power tools, outdoor power

Business

equipment, pneumatic tools and household equipment

Consolidated Subsidiaries

53 (Production subsidiaries 6, Sales and production subsidiaries 2)

Number of employees

Revenue

Parent

Consolidated

Parent

Consolidated

20,000

700

15,000

[Billion yen]

600

[Person]

500

10,000

400

300

5,000

200

100

0

0

'21 [FYE]

'21 [FYE]

2017

'18

'19

'20

2017

'18

'19

'20

Profit attributable

to

Parent

Consolidated

Parent

Consolidated

owners of the parent

Total assets

70

1,000

60

800

yen]

50

yen]

40

600

[Billion

30

[Billion

400

20

200

10

0

0

[FYE]

[FYE]

2017

'18

'19

'20

'21

2017

'18

'19

'20

'21

United Kingdom Plant

Germany Plant

China Plant (MCC/MKC)

United States Plant

Romania Plant

Head Office/Okazaki Plant
Thailand Plant	Brazil Plant

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Environmental Report 2021

Top Message

Aiming to create a "sustainable recycling-oriented society" that harmonizes the environment with the economy

Looking at the international economic situation for the year ended March 31, 2021, the world economy, which had crashed sharply due to the spread of the novel coronavirus (COVID-19), was on a gradual recovery path mainly due to the economic and financial measures taken by countries and the spread of vaccinations. However, uncertainties about the future still continue due to concerns over the resurgence of infections caused by variants, the outlook regarding U.S.-China friction and other factors. Under these circumstances, on the development side, the Makita Group concentrated its efforts on expanding the lineup of lithium-ion battery products, such as the "40Vmax lithium-ion battery" series of cordless tools offering high power, long life and durability. On the production side, we worked to increase production in response to increasing demand and to promote multi-polarized global production and began taking initiatives toward going plastic-free by reducing plastic bags, etc. used for product packaging and shifting to paper and other environmentally friendly materials. On the sales side, we continued to focus on expanding the sales of lithium-ion battery products, such as cordless outdoor power equipment. In addition, we made efforts to further strengthen trusting relationships with customers around the world by continuing to steadily provide customer support and after-sales services even amid

the pandemic that made it difficult to carry out normal sales activities.

In the future, the Makita Group expects that the prospect for the global economy will continue to be uncertain. Meanwhile, the Group believes that demand for environmental and human friendly tools that contribute to the solution of social issues, such as the labor shortage and environment conservation by increased efficiency of works, will continue to increase further both in emerging and developed countries. To cope with these assumed conditions, Makita will:

• Strengthen its R&D and product development capabilities, mainly for the technologies of motors and technologies for discharge/charge of batteries, to take the initiative in cordless products market;
• Position cordless outdoor power equipment as a future pillar of its business after power tools and help to bring about a decarbonized society by promoting the shift from engine products.
• Strengthen new product development and sales expansion in new fields, such as cleaning, outdoor and disaster prevention, and strive to evolve into a supplier of a comprehensive range of cordless products.
• Implement measures to strengthen and improve the efficiency of production, procurement and distribution, while further upgrading global production bases; and
• Strive to raise its brand power by promoting the establishment of a sales and after-sales service network to offer community-based and fine-tuned response to needs of customers around the world.

On the basis of these factors, the Group will strive to maintain a solid presence in the industry and contribute to achieve a sustainable society as a global supplier power tools used in home-building and in everyday life.

"Environmental Report 2021" is published with the objective of presenting the Company's initiatives for environmental protection activities. I hope this report helps your better understanding for our activities.

June 25, 2021	President, Representative Director
Munetoshi Goto

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Environmental Report 2021

Environmental Management

Corporate Philosophy

Long term Target: Strong Company

Makita has set itself the goal of contributing to the creation of sustainable society and consolidating a strong position in the industry worldwide 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.

Management Policy/Quality Policy

1. Makita strives to exist in harmony with society (a company that observes laws and regulations, acts ethically and never allows intervention of the anti-social organizations).
2. Makita values its customers (a market-driven company).
3. Makita is managed in a consistent and proactive manner (a company that strives to exist in perpetuity by adhering to a sound profit structure).
4. Valuing a stalwart corporate culture, Makita encourages each individual to perform to his or her highest level (a happy company).

Code of Ethics

1. Honest and ethical conduct; no conflict of interest
2. Compliance with applicable laws and regulations
3. Full, fair, timely and understandable disclosure
4. Accountability for adhering to this Code
5. Enforcement mechanism
6. Approval for waiver of this Code

Code of Conduct

1. Am I acting in accordance with ethical guidelines? (Would I be unashamed in front of anyone?)
2. Am I looking at things from the customer's point of view rather than the company's point of view? (Am I leaning more towards the customer than my supervisor or my colleagues?)
3. Am I acting and thinking independently and taking on challenges? (Am I caught up in past experiences and successes?)
4. Am I persistently improving and innovating technology? (Is there a reason we have to do it this way?) slogan
5. When I am on site, do I respect the opinions there? (Do I accurately gather information and communicate adequately?)

Environmental Vision

The "Go Green" slogan symbolizes Makita's commitment to continually providing new value as a comprehensive international supplier of tools. We hope to always remain as a company that maintains a steady eye on society, challenging ourselves to create a "sustainable recycling-oriented society" that harmonizes the environment with the economy.

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Environmental Report 2021