Maxell : Notice on Revision of Medium-Term Plan and Shareholder Returns

FOR IMMEDIATE RELEASE

Notice on Revision of Medium-Term Plan and Shareholder Returns

Tokyo, April 26, 2019－Maxell Holdings, Ltd. (TSE: 6810) announced that the Board of Directors held today has made a resolution on revision of the medium-term plan for FY2018-2020, Maxell Growth 20 (hereinafter "MG20") originally announced on April 27, 2018 on the Company's website, along with shareholder returns during the MG20 period.

1.Reason for the Revision of MG20

The Company, as new Maxell group, has made efforts to achieve the targets as of FY2020; 200 billion yen of net sales, 15 billion yen of operating income and 8% of ROE, respectively specified in MG20 seeking to accelerate business expansion and sustained growth with independent management structure. However, the business performance has fallen short of these original targets in the first year of MG20 due to, for example, diminishing sales of lithium ion batteries for consumer market and beauty care products. Therefore, the Company revised MG20 taking the current business environment into consideration and will keep trying to achieve the original targets early years in the next medium-term plan (FY2021-2023).

2.Details of the Revision of MG20

	Original targets as of FY2020	Revised targets as of FY2020
Net Sales	200 billion yen	173 billion yen
Operating Income	15 billion yen	10 billion yen
Operating Margin	7.5%	5.8%
ROE	8.0% or above	6.0% or above

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3.Shareholder Returns during MG20

The Company regards shareholder return as one of important management efforts, and under its fundamental policy, has been stably providing reasonable level of dividend, with a reference payout ratio of 30-40%.

Along with the revision of MG20, the Company has continuously discussed an optimal capital structure, maximization of its corporate value and improvement of ROE. As a result, the Company has come to a conclusion that the Company should enhance shareholder returns over the MG20 period (FY2019-2020) and hereby decided as follows:

	Continuously provide stable and reasonable level of dividend, with a
Fundamental policy	reference payout ratio of 30-40% , reflecting business performance with
on dividend	comprehensive consideration of factors such as financial conditions and
	investment plan in the future
Shareholder returns	Flexibly provide shareholder returns with a reference total return ratio of
during MG20	100% or aboveduring MG20 (FY2019-2020) with the aim of pursuing an
period	optimal capital structure

4.Period of Application of Shareholder Returns during MG20

The shareholder returns during MG20 period will be applied from FY2019.

(Reference)

Please access the Company's website for more information about the revision of MG20 and the shareholder returns.

http://www2.maxell.co.jp/ir/ir_news/

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