Maxell : Notice on recognition of extraordinary loss, income and difference between consolidated forecast and results for the fiscal year ended March 31, 2021

FOR IMMEDIATE RELEASE

Notice on recognition of extraordinary loss and extraordinary income and difference between consolidated financial forecast and results for the fiscal year ended March 31, 2021

Tokyo, April 28, 2021 --- Maxell Holdings, Ltd. (TSE: 6810, hereinafter "the Company") today announced about recognition on extraordinary loss and extraordinary income as well as difference between consolidated financial forecast announced on January 29, 2021 and the results for the fiscal year ended March 31, 2021 as follows.

1. Outline of recognition on extraordinary loss

(1) Consolidated financial results a. Impairment losses

At the Company's domestic and overseas consolidated subsidiaries, there were recognition on impairment losses relating to non-current assets, and the Company recognized 4,742 million yen in total.

b. Business restructuring expenses

Including 4,023 million yen of loss coming from downsizing of projector business announced in "Announcement about downsizing of part of business of consolidated subsidiary" on March 29, 2021 and 2,233 million yen of extra retirement payments coming from implementation of early retirement support program announced in "Notice regarding implementation result of Early Retirement Support Program and recognition on Extraordinary Loss" on January 13, 2021, the Company recognized 7,319 million yen in total.

c. Litigation expense

One of the consolidated subsidiaries of the Company recorded an extraordinary loss of 7,067 million yen in total, including expenses of 6,643 million yen associated with appropriate compensation for the infringement of its intellectual property and to protect and utilize its intellectual property.

(2) Non-consolidated financial results

a. Loss from evaluation of shares of affiliated company

The Company recognized 5,335 million yen of loss from evaluation of shares of its consolidated subsidiary, Maxell Izumi Co., Ltd. owned by the Company due to decrease of actual value.

There is no effect to the Company's consolidated financial results coming from the extraordinary loss mentioned above as it is offset in the Company's consolidated financial results.

2. Outline of recognition on extraordinary income

(1) Consolidated financial results

a. Gain on sale of non-current assets

The Company recognized 6,610 million yen of gain on sale of non-current assets in total, including 6,436 million yen of transfer gain coming from transfer of land announced in "Announcement about transfer of non-current assets and recognition on extraordinary income" on February 25, 2021.

b. Compensation for forced relocation

At the Company's domestic and overseas consolidated subsidiaries, there were compensation for forced relocation of business office and factory, and the Company recognized income of 1,339 million yen in total.

3. Influence to the Company's financial conditions

The matters mentioned above are already included in the consolidated financial results for the fiscal year ended March 31, 2021 announced today in "Summary of Consolidated Financial Results for the Year Ended March 31, 2021". Therefore, there will be no influence to the financial results in the future.

4. Difference between consolidated financial forecast and results for the fiscal year ended March 31, 2020 (April 1, 2020 through March 31, 2021)

	Net Sales	Operating profit	Profit attributable to	Net income
	owners of parent	per share
	(Million yen)	(Million yen)	(Million yen)	(yen)
Previous Forecast (A)	137,000	3,500	(1,000)	(20.22)
Actual Results (B)	139,055	3,806	(9,373)	(189.51)
Variance (C) = (B) - (A)	41	306	(8,373)
% of change (C)/(A)	1.5	8.7	-
[Reference] Result of
Previous Fiscal Year	145,041	(137)	(10,487)	205.23
ended March 31, 2020

5. Reason of difference between consolidated financial forecast and results

Although the Company calculated the numbers with certain amount of extraordinary losses which was unconfirmed, as mentioned in above "1. Outline of recognition on extraordinary loss", the Company has recognized losses including downsizing of projector business, newly recognized impairment loss at domestic and overseas consolidated subsidiaries and litigation expense, actual result of profit attributable to owners of parent became lower in comparison with previous forecast.

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