Makita : Report 2022 (Single-page view) (for printing)

Live Green & Grow Strong

Makita Report 2022

Year Ended March 31, 2022

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 2

Makita strives to exist	Makita values
in harmony with society	its customers

a company that observes laws and regulations, acts

ethically and never allows a market-driven company. intervention of the

anti-social organizations.

3	4
Makita is managed in		Valuing a stalwart
	corporate culture,
a consistent and		Makita encourages each
proactive manner		individual to perform to
		his or her highest level
a company that strives
to exist in perpetuity by		a happy company.
adhering to a sound
profit structure.

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Table of Contents

3 Business Summary

1. Financial & Non-financial Highlights

1. Makita's Value Creation History

1. Chairman's Message

11 President's Message

1. Makita's Value Creation Process

1. Value Creation Process Explained 17 Material Issues
   19 Makita's Strengths in the Value Chain
   21 Contribution to Solving Social Challenges

1. Business Review

1. Risks & Opportunities
2. Environment

1. Stakeholder Relations

41 Systems to Support Enhancement of Corporate Value-Corporate Governance

46 Messages from Outside Directors

47 List of Directors

1. Message from the Financial Officer

1. 11-YearSummary

1. Stock Information
2. Corporate Data

About This Report

Editorial Policy

The Makita Report is published with the objective of presenting the Company's initiatives for creating value over the medium- to long-term in a way that integrates both financial and non-financial information. In preparing the report, information that is particularly important for the Company's value creation was compiled concisely, referencing international frameworks such as those of the Value Reporting Foundation (VRF). Please see the Company website (https://www.makita.biz/) for more information. Detailed financial information, environmental information, and governance information are presented, respectively, in the Investor Relations section (under Additional Information in the IR Library), the Environmental Report, and the Corporate Governance Report.

• This report covers 53 companies, including Makita Corporation and its 52 consolidated subsidiaries (as of March 31, 2022), but some of the information reported only covers Makita Corporation.

Reporting Period FYE 2022 (April 1, 2021 to March 31, 2022)

However, information from outside of this period is reported when it is appropriate to ­present past circumstances and data, and recent examples.

Caution Regarding Forward-looking Statements

In this report, forward-looking statements are about future performance and are based on the Company's judgment derived from the information available at the time of its prepara- tion. Please understand that a number of important factors could cause actual results to differ materially from those presented in the forward-looking statements.

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Business Summary

Supporting the Creation of an Affluent Society on a Global Scale

As a global supplier of a comprehensive range of tools for creating comfortable homes and

­living environments, Makita supports the creation of an affluent society on a global scale. To this end, we are striving to solve social issues and contribute to the realization of a sustainable society by making a wide variety of products cordless and expanding our finely-tuned sales and service network while developing our business close to our customers.

Business Description

Power Tools

Outdoor Power Equipment, Household and Other Products

Parts, Repairs and Accessories

Makita power tools are used in many settings, such as residential and large-building construction sites and factories. Since becoming the first company in Japan to manufacture and sell portable electric planers in 1958, we have dedicated ourselves to daily technological development to enable better approaches to work that includes drilling, clamping, cutting, grinding, and more. We are responding to the diverse needs of customers with a robust lineup of products embodying our advanced technological expertise.

In the outdoor power equipment category, which includes lawn mowers, grass trimmers, chainsaws, and blowers, we are focusing on developing cordless products that are lightweight, low noise, and easy-to-handle for people from all walks of life, as well as emitting zero exhaust, thereby also contributing to the realization of decarbonization. Makita's household product line includes the Cordless Cooler & Warmer Box, Cordless Kettle, and other items that fulfill key roles during outdoor activities or even at times of disaster.

Accessories (including consumable parts such as saw blades and whetstones) have a significant impact on work quality and efficiency. Makita provides a lineup of long-life accessories optimized for work tasks. Additionally, we have a network of businesses in each part of the world to allow for rapid and stable repairs and parts supply, which enables Makita to contribute to improving its customers' production and work efficiency.

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Makita's Global Network

Makita operates 127 sales offices in Japan (as of April 2022), and directly managed sales bases in some 50 countries overseas, allowing us to carry out fine-tuned sales and services in approximately 180 countries. In addition to the one in Japan, we have plants in seven countries overseas and currently produce about 90% of our products overseas. By maintaining production sites and sales offices with ample inventories at locations around the world, we are able to ensure the swift and stable supply of our products.

Makita Corporation Head Office	Sales and Production Subsidiaries	Production Subsidiaries
Sales Subsidiaries	Sales Subsidiary Branches	Service Centers	Technology Development Subsidiary

	Japan	16.0%
	Europe	47.7%		Overseas
Share of	North America	15.2%	Overseas and	93.0%
Asia	6.6%	Domestic
Revenue
(excluding Japan)	Production	Domestic
by Region
Central and	5.6%	(Product Unit Basis)	7.0%
(FYE 2022)
South America	(FYE 2022)
	Oceania	7.0%
	The Middle East	1.9%
	and Africa
	Power Tools			Non-Japanese
	57.1%
			83.9%
Share of	Outdoor Power		Breakdown of
Equipment,
Revenue by	Household and		Employees by	16,973 people
Product Category	Other Products		Nationality
(FYE 2022)	25.6%		16.1%
	(FYE 2022)	Japanese
	Parts, Repairs
	and Accessories
	17.3%			3,260 people

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