Expect Makita's Long-Term Growth Pillars to be Power Tools and Outdoor Power Equipment

Makita’s business model emphasizes servicing professionals like carpenters by setting numerous sales/service branches near local specialty hardware stores that sell the company’s power tools and other equipment mainly to tradespersons. As a result, the company can quickly repair and deliver them back to the tradespersons who demand reliability in both the product and service. In the power tools market, we expect Makita to maintain its dominant market share of about 60% in Japan, while competing for the leading position in Europe with Robert Bosch, where we estimate both have about 20% regional shares. We expect Makita to continue generating about 17% of revenue in Japan and about half of revenue in Europe (including all products), as it leverages its well-recognized brand and service network.