Makita : 4Q Financial Results

Makita Corporation

Consolidated Financial Results for the year ended March 31, 2026

(IFRS Financial Information)

(English translation of "KESSAN TANSHIN" originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS

FOR THE YEAR ENDED MARCH 31, 2026 (Unaudited)

April 28, 2026

Makita Corporation

Stock code: 6586

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

Munetoshi Goto, President, Representative Director

1. Summary operating results of the year ended March 31, 2026 (From April 1, 2025 to March 31, 2026)

   1. CONSOLIDATED OPERATING RESULTS

      				Yen (millions)
      	For the year ended March 31, 2025				For the year ended March 31, 2026
      			(%)			(%)
      Revenue ………………………………………		753,130	1.6		777,600	3.2
      Operating profit ………………………………		107,038	61.8		104,705	(2.2)
      Profit before income taxes ……………………		108,477	69.5		108,017	(0.4)
      Profit …………………………………………		79,203	81.6		79,438	0.3
      Profit attributable to owners of the parent ……		79,338	81.6		79,414	0.1
      Comprehensive income ………………………		75,237	(34.7)		157,388	109.2
      				Yen
      Profit attributable to
      owners of the parent per share (Basic)			294.90			299.95
      (Diluted)			-			-
      Ratio of profit attributable to owners of the parent to total equity attributable to owners of the parent (%) .			8.8%	8.3%
      Ratio of profit before income taxes to total assets (%) .			10.0%	9.4%
      Ratio of operating profit to revenue (%) .......................			14.2%	13.5%

      Notes:

      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 corresponding period of the previous year.

   2. SELECTED CONSOLIDATED FINANCIAL POSITION

      Yen (millions)

      	As of March 31, 2025	As of March 31, 2026
      Total assets		1,106,525	1,181,185
      Total equity		932,495	1,004,541
      Equity attributable to owners of the parent		926,005	997,340
      Ratio of equity attributable to owners of the
      parent to total assets (%)		83.7%	84.4%

      Equity attributable to owners of the parent

      3,859.45

per share ..........................................................

Note: Amounts of less than one million yen have been rounded.

3,441.88

Yen

1. CONSOLIDATED CASH FLOWS

Yen (millions)

Note: Amounts of less than one million yen have been rounded.

1. Dividend Information

   Yen

   For the year ended March 31, 2025		For the year ended March 31, 2026	For the year ending March 31, 2027 (Forecast)
   Cash dividend per share: Interim .........................................................	20.00	20.00	79.00
   Year-end ......................................................	90.00	130.00	(Note)
   Total .............................................................	110.00	150.00	(Note)

   Yen (millions)

   Total cash dividend ..........................................	29,594	38,884	-
   Dividend payout ratio (%) ................................	37.3%	50.0%	-
   Ratio of total cash dividend attributable to
   owners of the parent to total assets (%) ............	3.3%	4.1%	-

   Note: While the Corporation has set forth under the Articles of Incorporation 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 2026 and 2027” on page 7.

2. Consolidated Financial Performance Forecast for the year ending March 31, 2027

   Yen (millions)

   For the year ending March 31, 2027

   		(%)
   Revenue ...................................................................................	820,000	5.5
   Operating profit ........................................................................	110,000	5.1
   Profit before income taxes .......................................................	111,000	2.8
   Profit attributable to owners of the parent ................................	81,000	2.0
   	Yen
   Profit attributable to owners of the parent per share (Basic) .....		313.45

   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.

3. Other

1. Changes in important subsidiaries during the year (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the year): None

2. Changes in accounting policies and accounting estimates:

   1. Changes in accounting policies required by IFRS: Yes

   2. Changes in accounting policies other than 1: None

   3. Changes in accounting estimate: None

(Reference) Overview of the Unconsolidated financial results of the year ended March 31, 2026 (From April 1, 2025 to March 31, 2026) Unconsolidated financial information has been prepared in accordance with Japanese generally accepted accounting principles.

(1) UNCONSOLIDATED FINANCIAL RESULTS

Yen (millions)

Net Income per share (Basic)

(Diluted) Notes:

1. Amounts of less than one million yen have been rounded.

   Yen

   138.53 236.17

   - -

2. The table above shows the changes in the percentage ratio of net sales, operating profit, ordinary income, net income against the corresponding period of the previous year.

(2) UNCONSOLIDATED FINANCIAL POSITION

Yen (millions)

Reasons for the difference between unconsolidated business results for FYE2026 and those for the previous fiscal year

There are differences between unconsolidated net sales for the fiscal year ended March 31, 2026 and those for the fiscal year ended March 31, 2025 due to an increase in overseas sales. Ordinary income increased due to an increase in dividend income.

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

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.

Regarding the assumptions for the forecasts and other matters, refer to “SUPPLEMENT INFORMATION (CONSOLIDATED)”, “1. Overview of operating results”, “(4) Outlook for the fiscal year ending March 31, 2027” on page 6.

SUPPLEMENT INFORMATION (CONSOLIDATED)

1. Overview of operating results
   1. Overview of operating results for the year

      Looking at the international economic situation during the fiscal year under review, uncertainty remains high due to

      U.S. tariff measures and the deteriorating situation in Iran. While the recovery of the construction market continues to lag due to persistently high interest rates in many regions, demand remains solid in the non-residential sector, particularly for large-scale urban development and infrastructure projects.

      In this situation, the Makita Group has focused on expanding its lineup of cordless products, including power tools and outdoor power equipment in the durable high-power “40Vmax Lithium-ion Battery” (XGT) series, and has introduced new products designed to help us further expand our market and increase our market share, such as a cordless impact wrench that delivers torque equivalent to that of a pneumatic model and a high-powered cordless blower equivalent to a 65mL engine-powered model.

      With respect to production, we have accelerated manufacturing bases and supply chain diversification in response to geopolitical risks. While we work to increase the level of the community-based and customer-oriented service framework, we strive to deepen and develop the non-residential market centered on high-power XGT series.

      In the Group’s consolidated business results for this period, although sales growth was sluggish because of U.S. tariff chaos, slow demand for housing and restrained investment in the construction and building market, consolidated revenue increased 3.2% year on year to 777,600 million yen, due to the impact of depreciation in the yen against local currencies. In terms of profit, while the cost of sales ratio improved due to the impact of foreign exchange and ongoing cost reduction measures, operating profit decreased by 2.2% year on year to 104,705 million yen (an operating profit ratio: 13.5%) due to an increase in sales personnel and advertising expenses. Profit before income taxes decreased by 0.4% to 108,017 million yen (profit before income taxes ratio: 13.9%) and profit attributable to owners of the parent increased by 0.1% to 79,414 million yen (ratio of profit attributable to owners of the parent: 10.2%).

      Revenue results by region were as follows:

      Revenue by region shows revenue in each market and differs from revenue in Segment Information (based on the source of shipments).

      In Japan, XGT series and outdoor power equipment underpinned sales, despite a challenging demand environment, including construction and building materials prices remaining at high levels and a decline in housing starts. As a result, revenue was 132,136 million yen, up 3.9% year on year.

      In Europe, although the construction and building market remained sluggish due to continued high interest rates, and the yen depreciated against the local currencies. As a result, revenue was 390,110 million yen, up 4.9% year on year.

      In North America, amid uncertainty about the economic outlook, housing investment was weak due to high interest rates and slowdown in labor market, and the market competition intensified. As a result, revenue was 78,662 million yen, down 6.3% year on year.

      In Asia, demand for tools remained weak overall as the prolonged property recession in China has spread to neighboring countries, we have made efforts to expand sales of high-value-added products for non-residential sectors such as infrastructure and manufacturing industries. As a result, revenue was 47,730 million yen, up 6.0% year on year.

      In Central and South America, sales continued to be strong in the major countries, and we made efforts to expand sales of cordless products, particularly XGT series and cordless outdoor power equipment in various countries. As a result, revenue was 52,986 million, up 4.5% year on year.

      In Oceania, despite the ongoing sluggish construction and building market, revenue was 56,651 million yen, up 1.5% year on year due to the expansion of sales of cordless products with a focus on XGT series.

      In the Middle East and Africa, construction and building demand remained strong primarily in oil-producing countries.

      As a result, revenue was 19,325 million yen, up 3.2% year on year.

      (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. We have identified contributing to a decarbonized society as a material issue that should be prioritized and are stepping up our efforts. Therefore, the Group is currently working on the realization of a decarbonized society by focusing on cordless outdoor power equipment that does not emit exhaust gases during use as the next pillar of our future business in addition to power tools. In addition, with the goal of reducing our greenhouse gas (GHG) emissions, we have set targets for reducing GHG emissions from our business activities (Scope 1 and 2) by 50% by FY2030 from the FY2020 level and to net zero by FY2040 and reducing GHG emissions from the entire supply chain (Scope 3) to net zero by FY2050.

      During the fiscal year ended March 2026, more solar panels were added to an existing system at China plant, and we promoted the use of renewable energy.

      We will continue to work on the use of renewable energy and energy conservation in our business activities to achieve GHG emission reduction targets.

   2. Overview of financial position for the fiscal year ended March 31, 2026

      Total assets as of the end of the year increased by 74,660 million yen to 1,181,185 million yen compared to the balance as of March 31, 2025. This increase was mainly due to the increase in “Inventories”.

      Total liabilities increased by 2,614 million yen to 176,644 million yen compared to the balance as of March 31, 2025. This increase was mainly due to the increase in “Other current liabilities”.

      Total equity increased by 72,046 million yen to 1,004,541 million yen compared to the balance as of March 31, 2025.

      This increase was mainly due to the change in exchange differences on translating foreign operations included in “Other components of equity”.

   3. Overview of cash flow situation for the fiscal year ended March 31, 2026

      Net cash provided by operating activities amounted to 102,336 million yen, decreased by 27,538 million yen from the previous fiscal year. This decrease was mainly due to the negative impact of the change in trade and other receivables and trade and other payables.

      Net cash used in investing activities amounted to 17,634 million yen, decreased by 20,237 million yen from the previous fiscal year. This decrease was mainly due to increased proceeds from withdrawal of time deposits.

      Net cash used in financing activities amounted to 99,167 million yen, increased by 65,623 million yen from the previous fiscal year. This increase was mainly due to an increase in the amount of treasury shares repurchased and dividends payment.

      Total cash and cash equivalent amounted to 257,385 million yen, increased by 4,106 million yen compared to 253,279 million yen at the end of the previous fiscal year.

   4. Outlook for the fiscal year ending March 31, 2027

      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;

      • Next to power tools, we will work to develop and market products, mainly cordless outdoor power equipment and cleaning products, as the mainstay of future business.

      • Work to strengthen a multipolar production and procurement system that is not overly dependent on any specific country, region, or supplier.

      • 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 of a comprehensive range of tools for creating comfortable homes and living environments.

        (Consolidated Financial Performance Forecast for the Year Ending March 31, 2027)

        Although geopolitical tensions persist, we expect sales to grow as we expand our sales headcount and develop new markets outside the construction and building market such as gardening and infrastructure centered on our 40Vmax series. In terms of costs, we expect an increase in selling, general, and administrative expenses due to an increase in sales headcount and wages rise in various regions.

        Based on these assumptions, the consolidated results for the fiscal year ending March 2027 are estimated below.

        Yen (millions) For the year ending

        March 31, 2027

        Revenue ........................................................................................................... 820,000

        Operating profit................................................................................................ 110,000

        Profit before income taxes ............................................................................... 111,000

        Profit attributable to owners of the parent ........................................................ 81,000

        [Preconditions]

        The above forecast is based on the assumption of exchange rates of 155 yen to the U.S. dollar, 180 yen to the euro and

        22.5 yen to the renminbi. [Reference]

        The actual exchange rate for the year ended March 31, 2026 was 150.67 yen to the U.S. dollar, 174.64 yen to the euro and 21.22 yen to the renminbi.

        FORWARD-LOOKING STATEMENTS

        This document contains forward-looking statements based on assumptions, judgments, and beliefs in light of the information currently available to it and includes potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary materially from the forecast provided. Therefore, these statements should not be interpreted as representation where such objectives will be achieved.

1. Basic policy regarding profit distribution and cash dividend for the fiscal 2026 and 2027

   Makita's basic policy on the distribution of profits has been the total return ratio at 35% or greater, with a lower limit on annual cash dividends of 20 yen per share. (In the event special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent per share after certain adjustments.)

   However, from the viewpoint of strengthening shareholder returns and improvement in capital efficiency, we have reviewed this policy as follows. This policy has taken effect starting with the dividend for the year ended March 2026.

   (Before)

   The total return ratio at 35% or greater, with a lower limit on annual cash dividends of 20 yen per share. However, in the event special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent per share after certain adjustments.

   (After)

   Consolidated payout ratio at 50% or greater, however, in the event special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent per share after certain adjustments.

   Our forecast for dividends is as follows;

   For the year ended March 31, 2026 (Result)

   For the year ending March 31, 2027 (Forecast)

   Cash dividend per share:

   Interim .......................................................................... 20.00 yen 79.00 yen

   Year-end ....................................................................... 130.00 yen (Note 1)

   Total.............................................................................. 150.00 yen (Note 1)

   Note: 1. At a meeting of the Board of Directors to be held in April 2027, in accordance with the basic policy on profit distribution described above, the amount of dividends will be determined so that the consolidated payout ratio is at least 50%, and the decision will be submitted to the General Meeting of Shareholders to be held the following June. However, if certain special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent after certain adjustments.

2. Measures to realize management that is conscious of capital costs and the stock price

While Makita’s cost of equity was estimated to be around 6 to 8%, currently it is estimated to be around 8% to 10% due to changes in the business environment such as rising interest rates. Regarding ROE, a key indicator of return on equity, Makita delivered an ROE of 8.3% for the fiscal year ended March 2026, driven by a recovery in profitability resulting from initiatives such as optimizing inventory levels, reducing costs at manufacturing plants, and price increases.

The stock price has declined since September 2021, when stay-at-home demand caused by COVID-19 pandemic lost momentum. FYE2026, there was some time that the price rose because of the implementation of shareholder returns including the repurchase of treasury shares. However, recently the stock declined due to the overall slump in the stock market caused by deteriorating situation in the Middle East. Consequently, the stock remains volatile.

Makita aims to achieve and sustain ROE that exceeds the cost of equity, with a target of 11% or higher at fiscal year 2030. By reducing the cost of equity, Makita aims to widen the equity spread.

Based on the policy and targets above, we will work on the following matters.

① Improvement of profitability and equity capital control

• Improving sales and profitability by developing the new markets targeting professional users outside the construction and building market with a focus on 40Vmax series

• Developing and deepening the new market through solution selling with our meticulous network of bases and sales force strengthening

• Strengthening shareholder returns by improvement of payout ratio

• Control of equity capital through flexible share buybacks

• Appropriate cash allocation considering the balance between investment in growth, shareholder returns, and retained earnings, and capital efficiency

  ② Reduction of cost of equity

• Formulation and execution of business strategies able to respond appropriately to changes in the environment

• Promotion of sustainability management and human capital management

• Promotion of investor understanding through IR activities

1. Basic Rationale for Selection of Accounting Standards

   Makita has voluntarily adopted International Financial Reporting Standards (IFRS) from the fiscal year ended March 31, 2019 in order to improve global comparability in financial market.

2. Consolidated Financial Statements (Unaudited)
   1. Consolidated Statement of Financial Position

      As of March 31, 2025		As of March 31, 2026
      253,279		257,385
      105,831		122,018
      338,116		375,829
      39,660		33,686
      19,552		19,273
      756,437		808,192
      266,609		278,067
      9,574		9,619
      35,881		44,414
      17,710		13,548
      18,123		22,153
      2,191		5,193
      350,088		372,993
      1,106,525		1,181,185

      Yen (millions)

      ASSETS

      CURRENT ASSETS:

      Cash and cash equivalents………………………… Trade and other receivables……………………… Inventories………………………………………… Other financial assets…………………………… Other current assets………………………………

      Total current assets……………………………… NON-CURRENT ASSETS:

      Property, plant and equipment, at cost…………… Goodwill and intangible assets…………………… Other financial assets…………………………… Retirement benefit assets………………………… Deferred tax assets……………………………… Other non-current assets…………………………

      Total non-current assets………………………… Total assets………………………………………………

      Yen (millions)

      As of March 31, 2025 As of March 31, 2026

      LIABILITIES AND EQUITY LIABILITIES

      CURRENT LIABILITIES:

      Trade and other payables…………………………	54,628	55,358
      Borrowings………………………………………	10,152	2,384
      Other financial liabilities…………………………	6,739	4,865
      Income taxes payable……………………………	13,003	14,585
      Provisions…………………………………………	6,216	6,766
      Other current liabilities…………………………	48,259	55,022
      Total current liabilities…………………………	138,998	138,980

      NON-CURRENT LIABILITIES:

      Retirement benefit liabilities…………………… Other financial liabilities………………………… Provisions………………………………………… Deferred tax liabilities…………………………… Income taxes payable…………………………… Other non-current liabilities……………………… Total non-current liabilities……………………

      Total liabilities………………………………………… EQUITY

      Share Capital……………………………………

      Capital Surplus…………………………………… Retained earnings………………………………… Treasury shares…………………………………… Other components of equity………………………

      Total equity attributable to owners of the parent……… NON-CONTROLLING INTEREST……………………

      Total equity…………………………………………… Total liabilities and equity………………………………

      3,185

      15,584

      1,793

      14,341

      104

      25

      35,032

      174,030

      23,805

      46,014

      732,556

      (21,470)

      145,101

      926,005

      6,490

      932,495

      1,106,525

      3,420

      15,165

      1,985

      16,290

      182

      621

      37,664

      176,644

      23,805

      45,432

      779,488

      (76,727)

      225,342

      997,340

      7,201

      1,004,541

      1,181,185

   2. Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income Consolidated Statements of Profit or Loss

      Yen (millions)

      For the year ended March 31, 2025

      For the year ended March 31, 2026

      REVENUE………………………………………………… Cost of sales……………………………………………… GROSS PROFIT…………………………………………… Selling, general, administrative and others, net…………… OPERATING PROFIT…………………………………… Financial income…………………………………………… Financial expenses………………………………………… PROFIT BEFORE INCOME TAXES……………………

      Income tax expenses……………………………………… PROFIT……………………………………………………

      Profit attributable to:

      753,130

      (481,704)

      271,426

      (164,388)

      107,038

      7,450

      (6,011)

      108,477

      (29,274)

      79,203

      777,600

      (493,630)

      283,971

      (179,266)

      104,705

      6,896

      (3,584)

      108,017

      (28,579)

      79,438

      Owners of the parent………………………………………	79,338	79,414
      Non-controlling interests…………………………………	(135)	24

      Profit attributable to

      owners of the parent per share (Basic)(yen)…………………

      Consolidated Statements of Comprehensive Income

      294.90 299.95

      Yen (millions)

      For the year ended

      March 31, 2025

      79,203

      For the year ended

      March 31, 2026

      79,438

      189

      7,283

      PROFIT……………………………..………………………

      OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

      Items that will not be reclassified to profit (loss)

      Equity financial goods measured at fair value

      through other comprehensive income (loss)……………

      Remeasurement of defined benefit plans …………………	1,835	(3,092)
      Total of items that will not be reclassified to profit (loss)…	2,024	4,191
      Items that may be reclassified to profit or loss
      Exchange differences on translating foreign operations…	(5,990)	73,759
      Total of items that may be reclassified to profit (loss)………	(5,990)	73,759
      Total other comprehensive income (loss), net of tax………	(3,966)	77,950
      COMPREHENSIVE INCOME………………………………	75,237	157,388
      Comprehensive income attributable to:
      Owners of the parent………………………………………	75,436	156,678
      Non-controlling interests…………………………………	(199)	710

   3. Consolidated Statement of Changes in Equity

      Yen (millions)

      For the year ended March 31, 2025 Equity attributable to owners of the parent

      Other

      Non-

      Total

      Share capital

      Capital Surplus

      Retained earnings

      Treasury shares

      components of equity

      Total

      Controlling

      interest

      equity

      Balance at April 1, 2024	23,805		45,607		669,359		(21,501)		150,886		868,156		7,050		875,206
      Profit for the period					79,338						79,338		(135)		79,203
      Other comprehensive income									(3,902)		(3,902)		(65)		(3,966)
      Comprehensive income	-		-		79,338		-		(3,902)		75,436		(199)		75,237
      Dividends paid					(18,025)						(18,025)				(18,025)
      Additional purchase of
      shares of subsidiaries			361								361		(361)		-
      Purchase of treasury shares							(3)				(3)				(3)
      Share-based payment
      transaction			46				34				80				80
      Transfer from other
      components of equity to
      retained earnings Total amounts of transactions					1,883				(1,883)		-				-
      with owners	-		407		(16,142)		31		(1,883)		(17,587)		(361)		(17,948)
      Balance at March 31, 2025	23,805		46,014		732,556		(21,470)		145,101		926,005		6,490		932,495

      Yen (millions)

      	For the year ended March 31, 2026
      Balance at April 1, 2025 Profit for the period Other comprehensive income Comprehensive income Dividends paid Purchase of treasury shares Share-based payment transaction Transfer from other components of equity to retained earnings Others Total amounts of transactions with owners Balance at March 31, 2026	Equity attributable to owners of the parent		Non-Controlling interest		Total equity
      	Share capital	Capital Retained Treasury Other Surplus earnings shares components Total of equity 46,014 732,556 (21,470) 145,101 926,005 79,414 79,414 77,264 77,264 - 79,414 - 77,264 156,678 (29,504) (29,504) (55,928) (55,928) (581) 671 90 (2,977) 2,977 - (1) (1) (581) (32,481) (55,257) 2,977 (85,343) 45,432 779,488 (76,727) 225,342 997,340
      	23,805		6,490		932,495
      			24 686		79,438 77,950
      	-		710		157,388
      					(29,504) (55,928) 90 -(1)
      	-		-		(85,343)
      	23,805		7,201		1,004,541

   4. Consolidated Statements of Cash Flows

      Yen (millions)

      	For the year ended	For the year ended
      	March 31, 2025	March 31, 2026
      CASH FLOWS FROM OPERATING ACTIVITIES: Profit…………………………………………………………………… 79,203		79,438
      Depreciation and amortization…………………………………………	29,757	30,465
      Income tax expenses…………………………………………………… 29,274		28,579
      Financial income and expenses………………………………………	(1,439)	(3,312)
      Loss (gain) on sales and retirement of property, plant and equipment… (129)		833
      Decrease (increase) in trade and other receivables……………………	8,792	(5,563)
      Decrease (increase) in inventories……………………………………	4,112	(2,695)
      Increase (decrease) in trade and other payables………………………	6,124	(4,350)
      Increase (decrease) in retirement benefit assets and liabilities………… (866)		919
      Decrease (increase) in guarantee deposits……………………………	2,059	3,485
      Other…………………………………………………………………… (10,974)		(88)
      Subtotal……………………………………………………………	145,914	127,710
      Dividends received……………………………………………………	792	937
      Interest received………………………………………………………	6,784	5,936
      Interest paid……………………………………………………………	(1,341)	(1,158)
      Income taxes paid……………………………………………………… (22,275)		(31,089)
      Cash flows from operating activities………………………………	129,874	102,336
      CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of non-current assets…………………………………………	(17,594)	(21,532)
      Proceeds from sales of non-current assets……………………………	930	980
      Purchase of investments………………………………………………	(900)	(510)
      Proceeds from sales and redemption of investments…………………	91	2,217
      Payments into time deposits…………………………………………… (34,377)		(82,104)
      Proceeds from withdrawal of time deposits……………………………	13,037	85,949
      Other…………………………………………………………………… 943		(2,635)
      Cash flows from investing activities………………………………	(37,872)	(17,634)
      CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in short-term borrowings……………………	(9,718)	(8,586)
      Purchase and sales of treasury shares, net……………………………	(3)	(55,928)
      Cash dividends paid……………………………………………………	(18,025)	(29,504)
      Repayment of lease liabilities…………………………………………	(5,623)	(5,151)
      Other…………………………………………………………………… (175)		1
      Cash flows from financing activities………………………………	(33,545)	(99,167)
      EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS……………………………………………	(1,824)	18,572
      NET CHANGE IN CASH AND CASH EQUIVALENTS……………	56,634	4,106
      CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR……	196,645	253,279
      CASH AND CASH EQUIVALENTS, END OF YEAR……………… 253,279		257,385

   5. Notes to Consolidated Financial Statements Notes on the assumptions for a going concern: NoneChanges in accounting policy:

      The Group has applied the following standards and interpretations from the current fiscal year as follows:

      IFRS	Title	Overview
      IAS 21	The Effects of Changes in Foreign Exchange Rates	A guidance on which exchange rate to use if exchangeability between two currencies was lacking

      The application of the standard, etc. has no material impact on the consolidated financial statements.

      Segment Information

      Japan Europe North

      Yen (millions)

      For the year ended March 31, 2025

      Asia Total Other Elimi-

      Consoli-

      America

      nations

      dated

      Revenue: External
      customers ..........	146,494		374,771		86,802		31,696		639,763		113,367		-		753,130
      Inter-segment ....	290,788		20,467		4,164		280,012		595,432		344		(595,776)		-
      Total ..........	437,282		395,238		90,966		311,708		1,235,195		113,712		(595,776)		753,130
      Operating profit (loss)	27,658		37,582		(19)		28,832		94,053		7,294		5,691		107,038

      Yen (millions)

      Revenue: External customers .......... Inter-segment .... Total .......... Operating profit .........	For the year ended March 31, 2026
      	Japan	Europe		North America		Asia		Total		Other		Eliminations	Consolidated
      	151,458	393,338		81,633		34,333		660,762		116,838		-	777,600
      	315,409	25,390		7,400		292,099		640,298		364		(640,662)	-
      	466,867	418,728		89,033		326,432		1,301,060		117,202		(640,662)	777,600
      	38,935	39,015		2,306		30,364		110,619		5,519		(11,433)	104,705

      Revenue by product categories

      Yen (millions)

      For the year ended

      March 31, 2025 Composition ratio

      For the year ended

      March 31, 2026 Composition ratio

      Increase (Decrease)

      Finished goods.......................................................	586,335	77.9%	599,970	77.1%	2.3%
      Parts, repairs and accessories ................................	166,795	22.1%	177,630	22.9%	6.5%
      Total revenue......................................................	753,130	100.0%	777,600	100.0%	3.2%
      Information per share
      			Yen
      		As of		As of
      		March 31, 2025		March 31, 2026
      Equity attributable to owners of the parent per share ...		3,441.88		3,859.45
      			Yen
      		For the year ended		For the year ended
      		March 31, 2025		March 31, 2026
      Profit attributable to owners of the parent per share (Basic) .........................................................................		294.90		299.95

      Notes:

      1. Profit attributable to owners of the parent per share (Basic) is calculated on the basis of the average number of shares outstanding during the year. Average number of shares outstanding is as follows:

         For the year ended March 31, 2025: 269,031,331

         For the year ended March 31, 2026: 264,754,263

      2. The amount of profit attributable to owners of the parent per share diluted are not shown as diluted shares do not exist.

   Significant Subsequent Events: None
3. SUPPORT DOCUMENTATION (CONSOLIDATED)

1. Consolidated Financial Results and Forecast

   For the year ended March 31, 2026

   (%)

   777,600 3.2

   132,136 3.9

   645,464 3.1

   104,705 (2.2)

   108,017 (0.4)

   79,414 0.1

   299.95

   17,586

   Yen (millions) For the year ended

   March 31, 2025

   (%)

   REVENUE………………………………………………… Domestic………………………………………………… Overseas…………………………………………………

   Operating profit……………………………………………… Profit before income taxes…………………………………… Profit attributable to owners of the parent…………………… Profit attributable to owners of the parent per share (Yen)… Number of Employees………………………………………

   753,130 1.6

   127,168 3.2

   625,962 1.3

   107,038 61.8

   108,477 69.5

   79,338 81.6

   294.90

   17,641

   Yen (millions) For the year ending

   March 31, 2027

   (Forecast)

   			(%)
   REVENUE…………………………………………………………………	820,000		5.5%
   Domestic………………………………………………………………	135,000		2.2%
   Overseas………………………………………………………………	685,000		6.1%
   Operating profit……………………………………………………………	110,000		5.1%
   Profit before income taxes…………………………………………………	111,000		2.8%
   Profit attributable to owners of the parent…………………………………	81,000		2.0%
   Profit attributable to owners of the parent per share (Yen)………………	313.45
   Number of Employees……………………………………………………		-

   Notes:

   1. Please refer to 1. Overview of operating results (4) “Outlook for the fiscal year ending March 31, 2027” on page 6.

   2. 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 compared to the corresponding period of the previous year.

2. Consolidated Revenue by Geographic Area

   Yen (millions)

   	For the year ended	For the year ended
   	March 31, 2025	March 31, 2026
   	(%)	(%)
   Japan …………………………………………	127,168 3.2	132,136 3.9
   Europe ………………………………………	371,798 4.3	390,110 4.9
   North America ………………………………	83,919 (10.4)	78,662 (6.3)
   Asia …………………………………………	45,031 (2.4)	47,730 6.0
   Central and South America …………………	50,687 2.0	52,986 4.5
   Oceania ………………………………………	55,802 (1.0)	56,651 1.5
   The Middle East and Africa …………………	18,726 18.3	19,325 3.2
   Total …………………………………………	753,130 1.6	777,600 3.2

   Notes:

   1. The table above sets forth Makita's consolidated revenue by geographic area based on the customer’s location for the periods presented. Accordingly, it differs from “Segment Information” on page 15.

   2. The table shows the changes in the percentage ratio of revenue compared to the previous year.

3. Exchange Rates

   Yen

   	For the year ended March 31, 2025	For the year ended March 31, 2026	For the year ending March 31, 2027 (Forecast) 155 180 22.5
   USD/JPY ……………………………… EUR/JPY ……………………………… RMB/JPY ………………………………	152.62 163.88 21.11	150.67 174.64 21.22

4. Production Ratio (unit basis)

   For the year ended March 31, 2025 Composition ratio Domestic 7.4% Overseas 92.6%

   For the year ended March 31, 2026 Composition ratio 7.5% 92.5%

5. Consolidated Capital Expenditures, Depreciation and Amortization, and R&D costs

Yen (millions)