Management Policy

Risk Factors

The following is a summary of some of the significant risks, concerning the business and financial conditions stated in the financial statements, which could affect investors’ decision-making. Additionally, some risks that may be currently unknown to Makita and other risks that are currently believed to be immaterial, may become material. Items concerning the future are based on judgments by management as of the date the Securities Report was submitted (Jun 29, 2023).
For details, please refer to the [Risks factors] section in the [General Overview of Business].

  • (1) Makita’s sales are affected by the levels of construction activities and capital investments in its markets.
  • (2) Currency exchange rate fluctuations may affect Makita’s financial results.
  • (3) Makita’s overseas activities and entry into overseas markets entail risks, which may have a material adverse effect on Makita’s business activities.
  • (4) Makita faces intense competition in the global market for its power tools for professional use.
  • (5) If Makita is not able to develop attractive products, Makita’s sales may be adversely affected.
  • (6) If the procurement of raw materials used by Makita becomes difficult or prices of these raw materials rise sharply, this may have an adverse effect on Makita’s performance.
  • (7) Geographic concentration of Makita’s main offices and facilities may have adverse effects on Makita’s business activities.
  • (8) If any of Makita’s suppliers fail to deliver materials or parts required for production as scheduled, Makita’s production activities may be adversely affected.
  • (9) If Makita fails to maintain its relationships with its significant customers or if such significant customers reduce their purchases and sales of Makita’s products, Makita’s sales may be significantly affected.
  • (10) Makita may not be able to protect its intellectual property rights and may incur significant liabilities, litigation costs or licensing expenses or be prevented from selling its products if it is determined to be infringing the intellectual property of third parties.
  • (11) Product liability litigation or recalls may harm Makita’s financial statements and reputation.
  • (12) If Makita is unable to retain talented personnel, this may have an adverse effect on Makita’s competitiveness and result of operations.
  • (13) Environmental or other government regulations may have a material adverse impact on Makita’s business activities.
  • (14) If Makita’s IT operations network halts or malfunctions, Makita’s production and shipment schedule may be adversely affected.
  • (15) Fluctuations in stock market prices may adversely affect Makita’s financial statements.