Integrated Report 2021

CONTENTS

Introduction

MEX23

Special Feature

Sustainability

Corporate Governance

Basic Data

1

Contents

Introduction

MEX23

Special Feature

Corporate Governance

3

60-Year History of Progress Responding to

11

Message from the President

30

Materiality

52

Corporate Governance

the Changing Times

15

Growth Strategies by Segment

57 Directors and Executive

4

About Maxell Group

15

Energy Segment

Sustainability

Officers

5

Maxell Group Philosophy

17

Functional Materials Segment

33

Sustainability Management

58​ Message from the Outside

6

Sources of Value Creation

19

Optics & Systems Segment

Directors

34

Stakeholder Engagement

7

Path to Sustainable Growth (Business

21

Life Solution Segment

23

35

With Customers

Foundation Establishment ➞ Medium-Term

Message from the Financial Director

37

With Business Partners

Basic Data

Management Plan MEX23)

25

Establishment of a New Company-Wide

8

40

With Employees

61

History/Consolidated Financial

Foundation for Sustainable Growth

Organization to Improve the Effectiveness

43

With Shareholders and Investors

9

Maxell Group's Value Creation Model

of New Business Development and Sales

Information

45

With Local Communities and Society

65

Functions

Maxell Group Network

47

With the Environment

27

Intellectual Properties (IP) to support new

66

Corporate Data/

48

Accomplishments and Progress

and existing businesses

Stock Information

28

of Environmental Activities

Enhancing the Value of the Corporate Brand

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CONTENTS

Introduction

MEX23

Special Feature

Sustainability

Corporate Governance

Basic Data

2

As of October 1, 2021, Maxell Group has executed an absorption-type merger with Maxell Holdings, Ltd. as the surviving company and Maxell, Ltd. as the absorbed company, and changed the company name from Maxell Holdings, Ltd. to Maxell, Ltd.

To clarify business responsibilities and growth strategies, in fiscal 2021 the business segments were changed to four segments: Energy, Functional Materials, Optics & Systems, and Life Solution.

Editorial Policy

This report is issued for the purpose of sharing information on Maxell Group,

Referenced Guidelines

Referencing of "Guidance for Collab­

whose business is based on harmonious coexistence with society, shareholders,

Value Reporting Foundation (VRF)

orative Value Creation"

investors, and all other stakeholders. This integrated report details the Group's

The International IR Framework

This report refers to the "Guidance

businesses and financial results as well as its sustainability activities and the

GRI Sustainability Reporting Guidelines*

for Collaborative­ Value Creation"

outcomes of these activities. Detailed financial and sustainability related infor-

The Ministry of the Environment's Environmental Reporting Guidelines (2018)

prepared by the Ministry of Economy,

mation not published in full in this report is disclosed on the Company's

The Ministry of the Environment's Guide for Contents to Be Disclosed in an

Trade and Industry.

website.

Environmental Report, Third Edition (May 2014)

Environmental Consideration Law

Participation in the United Nations Global Compact

Maxell Group supports the United Nations Global Compact, supporting the 10 principles of human rights, labor, the environment, and anti-corruption, and is engaged in activities in each field.

Reporting Period

This report primarily covers fiscal 2020 (April 1, 2020-March 31, 2021). However, it includes some events from fiscal 2021.

ISO26000:2010

  • International sustainability reporting guidelines compiled by the Global Reporting Initiative

Issued

November 2021

Support for TCFD (Task Force on Climate-related Financial Disclosures)

In October 2021, Maxell Group expressed its support for the recommendations of the TCFD.

External Evaluations

Certified as a "2021

2020 Chairman's Award of

Portable power supply "MES-TR470",

Certified Health and

the IEC Activities Promotion

alkaline dry batteries "VOLTAGE (Voltage)"

Productivity Management

Council (IEC-APC)

and alkaline dry batteries "GD (Global

Organization"

Design)" obtained certification as

Maxell was certified as a "2021

"Recommended products for disaster

prevention."

Certified Health and Productivity

Management Organization"

in

the large-scale corporate sector as a corporation that considers employee health management from a managerial perspective and works with it strategically.

Mote-Care Foot, a leg

Seven models of Maxell's ozone antibacterial

EMS exercise device, is

deodorizers and ozone water generators were

certified as a health

certified by the Japan Ozone Association by

promotion device.

July 2021.

  • The accreditation system is a system for accrediting manufacturers and products that meet the standards independently established by the Japan Ozone Association.

Maxell Group will contribute to the realization of a sustainable society by analyzing the risks and opportunities associated with climate change, and making efforts to resolve the issues.

Notes on the statements about the future:

This report contains statements on our performance outlook, plans, strategies, and other statements, out of which performance outlook are not historical facts. These forward- looking statements are based on information available to the Company as of March 31, 2021 and are subject to a number of risks and uncertainties. In this regard, please do not rely solely on these earnings forecasts in making investment decisions.

CONTENTS

Introduction

MEX23

Special Feature

Sustainability

Corporate Governance

Basic Data

3

60-Year History of Progress Responding to the Changing Times

Maxell Group has been making progress while changing its shape in accordance with the changing times, and celebrated its 60th anniversary since foundation in 1961. "Analog Core Technologies," a core competence, is a generic term for "Mixing & Dispersion," "Fine Coating," and "High Precision Molding & Forming" technologies developed from the magnetic tape and dry battery manufacturing processes. We will continue to contribute to a sustainable society by leveraging the technological capabilities that have been evolved and passed down as Maxell's unique technologies through the passion and challenges of the people who came before us.

Roots of Maxell,

Continue to create and provide "Maximum Value" and

which has created many of the world's first products

contribute to a sustainable society through unique

"Maximum Capacity Dry Cell"

Analog Core Technologies

1961 2021

Analog Core Technologies

Mixing &

Dispersion

Fine Coating

High Precision

Molding &

Forming

1961 - 1980 Popularization and miniaturization of

home appliances

Commercialized the first audio cassette tapes into the Japanese market

In the 1960s, high economic growth led to the rapid spread of consumer electronics products. While a variety of consumer electronics products greatly change people's lives, Maxell became the first company in Japan to commercialize cassette tapes. Since then, the company has continued to evolve in response to the music boom, contributing to the formation of a culture of portable music that continues up to now.

Technologies for applying magnetic powder accumulated with cassette tapes are now being used in a variety of products as "Fine Coating" technologies through further evolution.

1981 - 2000 Growing popularity of personal computers and increased storage capacity

Commercialized the world's first rewritable DVD-RAM discs

PCs became popular in earnest in the 1980s. As the volume of data handled has grown day by day, recording media have also made remarkable progress. In 1998, Maxell became the first company in the world to commercialize a rewritable DVD-RAM. It supported the transformation of the age from analog to digital. Molding die and molding technologies, which are crucial to producing high-qualityDVD-RAM, have led to the manufacturing process of optical components as a "High-Precision Molding

& Forming" technology.

2001 - 2021 Increasing interest in electrification and safety performance of automotives

Commercialization of Heat-ResistantCoin-type Lithium Batteries (Heat-Resistant CR)

In the 21st century, automotive electronics progressed in order to reduce the environmental burden. In addition, interest in safety performance has been expanding and various safety functions have been added, including TPMS modules (tire pressure monitoring systems) that have been installed to prevent tire burst incidents, particularly in foreign countries. Maxell commercialized Heat- Resistant Coin-type Lithium Batteries for

TPMS modules in 2004. We use the "Mixing & Dispersion" technology that we have accumulated over many years since the development of dry batteries as our founded products, and provide batteries that can be used safely even in harsh environments.

CONTENTS

Introduction

MEX23

Special Feature

Sustainability

Corporate Governance

Basic Data

4

About Maxell Group

Established in 1961, Maxell Group has been aggressively expanding its business overseas since 1969, based on its refined quality and trust fostered in Japan. We will continue to expand our business in emerging countries and other countries while strengthening products and services to solve social issues.

Business Segments and Major Group Companies

Net Sales by Segment

Financial and Non-Financial Highlights

Energy

Manufactures and sells primary and rechargeable batteries such as lithium primary batteries, silver oxide batteries, coin-type lithium rechargeable batteries, and prismatic lithium-ion batteries, and manufactures and sells battery- related products such as chargers and electrode-applied products. It also is selling electricity through solar power generation.

Functional Materials

Manufactures and sells adhesive tapes, including tapes for construction and construction materials, functional materials such as ink, film and coated separators, and industrial rubber products.

Ube Maxell Kyoto Co., Ltd.

Maxell Kureha Co., Ltd.

Life Solution

Energy

Net Sales / Operating Profit Margin

Dividend Amount / Dividend Payout Ratio

¥35.0 billion

¥37.8 billion

(millions of yen / %)

(¥ / %)

25%

27%

5.60

5.97

268.00

150,584

135,116

148,198

145,041

139,055

35.8

2.74

Net sales

3.60

33.2

32.6

¥139.1

‒0.09

36.00

44.00

36.00

billion

0.00

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Net sales

Operating profit margin

Dividend Amount

Dividend Payout Ratio

Optics &

Functional

Number of Employees

Number of Patent Assets /

Systems

Materials

¥38.6 billion

¥27.7 billion

(number of employees)

Number of Patent Applications

28%

20%

(cases)

5,263

5,108

8,413

7,972

7,592

7,863

8,044

3,966

4,045

4,555

Regional Net Sales Breakdown

864

817

784

Optics & Systems

Manufactures and sells optical components, electroforming and precision components, semiconductor -related embedded systems,

Life Solution

Manufactures and sells health care and beauty care equipment, small electrical equipment, audio acces- sories, recording media, batteries

Asia and

Japan

751

754

Others

¥87.1 billion

¥30.7 billion

2016 2017 2018 2019 2020

2016

2017 2018 2019 2020

22%

63%

Number of patent applications

Number of patent applications

molding die and plastic molded products, IC cards, projectors, and video equipment.

and chargers, hydraulic tools, and other products.

Net sales

Europe

¥139.1

billion

¥9.5

billion

7%

Amount of CO2 Waste Discharged*

Waste Emission

(kt-CO2)

(t)

103.8

100.7

5,676

5,769

5,240

93.1

91.2

88.3

4,878

4,482

5,033

3,903

4,257

3,670

3,046

3,203

2,597

2,930

2,981

2,686

Maxell Frontier Co., Ltd.

Maxell Izumi Co., Ltd.

United States ¥11.8 billion

8%

200.5

279.9

335.3

294.1

206.7

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Total emission Recycling

Intermediate treatment Final disposal

  • Scope 1: Direct emissions due to fuel incineration, etc. at business sites
    Scope 2: Indirect emissions from purchased electricity, etc.

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Disclaimer

Hitachi Maxell Ltd. published this content on 28 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 December 2021 15:36:12 UTC.