Maxell : Presentation of Financial Result of FY2023

Financial Results of FY2023 (April 2023 - March 2024)

April 26, 2024

Maxell, Ltd.

despite sales increase in growing business

Summary of today's presentation

1. Outline of Financial results for FY2023

・Sales decreased mainly due to the transfer of domestic consumer products sales business ・Operating profit increased year on year and exceeded forecast

・Net profit increased due to exchange gain in addition to operating profit increase

・Revised year-end dividend forecast upwards (dividend increase) with the increase in net profit

2. Forecast for FY2024

・Slight decrease in sales due to reduced rechargeable batteries sales and licensing revenue,

・Despite decrease in licensing revenue, operating profit remains at the same level as previous year by sales increase and profitability improvement of other businesses

・Whereas net profit will decrease, it remains same level as pervious year considering the exchange gains added in the previous year

・The dividend forecast for FY2024 is expected to maintain the same amount as FY2023

3. Medium-term management plan (MEX26)

・Further accelerate the policy of previous plan "Commit to Value", and implement management with greater emphasis on corporate value and profit growth

・Accelerate investments in growth businesses to achieve PBR of over 1.0, while implementing

shareholder return policy prioritized on total payout ratio

©2024 Maxell, Ltd. 2

1. Outline of Financial results for FY2023

©2024 Maxell, Ltd. 3

Consolidated Financial Results of FY2023

JPY billion	FY2022	FY2023		Changes to
Result	Forecast	Result	L/Y	Forecast

Net Sales		132.8		130.0		129.1		(3.6)	(0.9)
Operating		5.6		7.5		8.1		2.4	0.6
Profit	OP ratio	4.2%	5.8%	6.3%
Ordinary		6.7		―		9.8		3.1	―
Profit	OP ratio	5.1%		7.6%
Net Profit(*)	OP ratio	5.2	3.9%	5.8	4.5%	7.5	5.8%	2.4	1.7
Shareholders'		49.2%		―		54.9%		+5.7pt.	―
Equity Ratio
Free Cash		5.7		―		9.4		3.7	―
Flow
ROIC		3.5%		―		5.0%		+1.5pt.	―
ROE		6.3%		―		8.5%		+2.2pt.	―
Ex-rate	US$	135		143		145		Yen	Yen
			Deppreciation	Deppreciation

FY2022	FY2023
		Sales (FY accumulated)
			99.2 97.3	132.8 129.1
		65.2 65.6
32.2 32.2
	1Q	2Q	3Q	４Q
	Operating Profit (FY accumulated)
			6.5	8.1
			5.6
		4.6	4.6
1.3	2.0	2.5
	1Q	2Q	3Q	4Q

※1 Forecast announced on October 30, 2023 ※2 Profit attributable to owners of parent

・Despite sales increase of automotive optical components, adhesive tape, and licensing revenue,

net sales decreased due to the transfer of the domestic consumer products sales business, and reduction in sales of rechargeable batteries and semiconductor related products

・Operating profit increased due to higher sales of automotive optical components and licensing revenues, as well as improved profit of health & beauty care products

・Net profit increased due to exchange gain in addition to operating profit increase ・ROE improved from 6.3％ to 8.5％

©2024 Maxell, Ltd.

4

Net Sales Changes (FY2022 → FY2023)

Changes (3.6)

	Quantity
132.8	Variance
(9.6)

（Unit: JPY billion）

Exchange

Variance+4.2 129.1

Price

Variance

+1.7

Factor	Status
		・Good sales of automotive optical components
		and adhesive tape
		・Licensing revenues remained strong including
		temporary cases
Quantity	・Decrease due to the transfer of domestic
consumer products sales business
Variance
・Sales decrease of consumer LIB
		・Primary battery decreased due to sluggish
		demand for electronic devices in China and
		global markets
		・Temporary inventory adjustments by customers

・Energy (4.0)

・Functional Materials +0.2 ・Optics & Systems +1.3 ・Life Solution (7.1)

Net Sales	Net Sales
FY2022	FY2023

		for semiconductor-related products
Price		・Continue to optimize sales prices
Variance
Exchange		・Positive impact of yen depreciation
Variance
			Sales increase		Sales decrease
			©2024 Maxell, Ltd.	5

Operating Profit Changes (FY2022 → FY2023)

Changes +2.4

（Unit: JPY billion）

		Exchange	Others
		Variance
	+1.5			(1.2)
・Energy (1.9)	Business			8.1
・Functional Materials +0.1	Reform
・Optics & Systems ± 0		Effect
・Life Solution (1.3)		+1.6

	Price
Variance
Quantity	+1.7
5.6 Variance
(3.1)	・Expense related with
Cost	civil rehabilitation
Reduction	proceedings of customer
+2.3	・One-time expenses relating
	to reform of Life Solution
	・R&D and mass production
Material	setup cost for
all-solid-state battery
cost
increase
(0.3)

FY2022

FY2023

Factor

Quantity

Variance

Material cost increase

Cost

Reduction

Price

Variance

Business

Reform Effect

Exchange

Variance

Others

Status

・Good sales of automotive optical components and adhesive tape

・Licensing revenues remained strong

・Impact of transfer of domestic consumer products sales business

・Lower sales of primary and rechargeable batteries ・Lower sales of semiconductor related products

・Trends vary by material, but soaring material costs are moving toward resolution

・Effect of cost reductions and improved product-mix

・Effect of selling price optimization

・Fixed cost reduction due to the transfer of domestic consumer products sales business

・Positive impact of yen depreciation

・Expense related with civil rehabilitation proceedings of customer (1Q)

・Recognized one-time expenses relating to reform of Life Solution business (3Q)

・R&D and mass production setup cost for all-solid-state battery

Profit increase Profit decrease

©2024 Maxell, Ltd. 6

Cash Flow Changes

（Unit: JPY billion）

Cash flows from

Operating	Cash flows from
activities	Investing activities
+14.2	(4.8)	Cash flows from

financing activities

(9.5)

36.6

FCF＋9.4

Exchange

Variance 38.7

+2.2

Cash and cash equivalents	Cash and cash equivalents
(Beginning of FY2023)	(End of FY2023)
	©2024 Maxell, Ltd. 7

and deterioration of product-mix

Review on FY2023 by segment (Energy)

JPY billion

Net sales

Full Year		Changes to
FY2022	FY2023	L/Y
36.8	35.0	(1.8)

Operating				2.4					0.5		(1.9)
Profit		OP ratio			6.4%			1.4%
FY2022			FY2023	Sales (FY accumulated)	36.8	35.0				Operating Profit (FY accumulated)
					18.0		27.1 26.5								2.4
					18.0							1.0	1.6
	8.8		8.9									0.4	0.5
								0.3	0	0.2
		1Q		2Q	3Q	4Q		1Q		2Q	3Q	4Q

Sales

Operating

profit

• Despite decrease in sales volume for electronic devices due to sluggish demand in China and global markets, sales of primary batteries kept same level as previous year with strong performance for automotive applications

・Sales of rechargeable batteries decreased due to a decrease in sales of consumer LIB

・Profit of primary batteries decreased due to lower sales for electronic applications

・Despite lower sales, profitability of rechargeable batteries improved due to fixed cost reduction

・Recognized expenses for developing all-solid-state battery and for building mass production system

【Main products of primary batteries】 ・Heat resistant coin type lithium

battery

・Cylindrical type lithium battery ・Coin type lithium battery

【Main products of rechargeable

batteries 】

・Consumer lithium-ion battery ・Coin type lithium rechargeable

battery

©2024 Maxell, Ltd. 8

Review on FY2023 by segment (Functional Materials)

JPY billion

Net sales

Full Year		Changes to
FY2022	FY2023	L/Y
29.3	30.1	0.9

Operating					0.9					1.4			0.5
Profit		OP ratio				2.9%				4.5%
FY2022			FY2023	Sales (FY accumulated)						Operating Profit (FY accumulated)
							22.2	22.5	29.3	30.1						1.1	1.4
														0.9
7.3		7.1	14.8	14.6					0.3	0.2	0.3	0.5	0.7
		1Q	2Q	3Q	4Q		1Q		2Q		3Q	4Q

Sales

Operating

profit

・Sales of adhesive tape increased due to recovery in orders mainly

for semiconductor​tor manufa​cturing​ process

・Sales of industrial materials decreased due to delay in order recovery of industrial rubber

・Profit of adhesive tape increased due to sales expansion of high value added products and selling price optimization

・Profit of industrial materials increased due to improved profitability

【Main products of adhesive tape】 ・Tape for construction

・Dicing tape

・Tape for industrial processes 【Main products for industrial

materials】

・Industrial rubber ・Coated separator

©2024 Maxell, Ltd. 9

Review on FY2023 by segment (Optics & Systems)

JPY billion
Net sales
Operating
Profit	OP ratio

	Full Year			Changes to
FY2022		FY2023		L/Y
37.5		41.4		3.9
3.9	10.4%	5.6	13.6%	1.7

FY2022		FY2023	Net Sales (FY accumulated)	37.5	41.4				Operating Profit (FY accumulated)	5.6
						28.0	31.5					4.7
				18.3	22.1						3.5	3.9
9.0	10.7						0.8	1.7	1.8	2.9
			1Q	2Q	3Q	4Q	1Q		2Q	3Q	4Q

Sales

Operating

profit

・Sales of automotive optical components increased due to recovery in automotive market and improved installation rate

・Sales of semiconductor related products decreased due to the impact of inventory adjustment at some customers

・Licensing revenue contributed to sales increase

・Profitability of automotive optical components improved due to growth in high value-added products

・Profit of semiconductor related products decreased due to lower sales ・Profit of licensing revenue increased due to higher sales

【Main products of in-car optical components 】

・In car camera lens unit ・LED headlamp lens

【Main products for semiconductor related products 】

・Semiconductor DMS ※

・EF²：Electro fine forming

※DMS：Design & Manufacturing Service

©2024 Maxell, Ltd. 10