We Expect Makita to Improve Profits by Managing Costs, and From Cordless Tools' Building Popularity

Makita focuses on serving professionals, such as carpenters, by opening sales and service locations close to specialty hardware stores. This allows them to sell their power tools and equipment directly to tradespeople. As a result, the company can quickly repair and return the equipment to these customers, who demand reliability in both products and service. We anticipate that Makita will maintain its strong 60% market share in Japan and will compete closely with Robert Bosch for the top spot in Europe, where both companies are estimated to hold around 20% of the market. 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.