■Foster a culture that pursues total optimization for the Group as a whole based on the penetration of MVVSS

In July 2020, directly after I became president, we formulated MVVSS (Mission, Vision, Value, Spirit, Slogan) as the core principle of our basic management policy, and clarified Maxell's direction. Since then, I have continued to visit our major domestic bases, including Group companies, and engaged in town hall meetings in which I have communicated directly with employees to help ensure the penetration of MVVSS. Until fiscal 2023, I was mostly talking to young employees, but in fiscal 2024 I spoke mainly to management personnel at more than 10 bases regarding the aims and initiatives of the newly begun Mid-Term Management Plan MEX26 (Maximum Excellence 2026). There were many questions from people at each of these bases, and we engaged in deep discussions about providing value to customers through Monozukuri (Manufacturing) that leverages Analog Core Technologies.
　In the five years since the formulation of MVVSS, it has continued to penetrate: information sharing and exchanges that transcend departments have increased thanks to the group-wide crossdivisional organization changes, and I feel that we are fostering a sense of unity as a Group. However, when it comes to pursuing performance, there is still a tendency at business departments and Group companies to think about sectional optimization. I hope to shift to a culture that pursues total optimization for the Group as a whole, including overseas bases.

■Review of the first fiscal year of MEX26

In fiscal 2026, the final fiscal year of MEX26, we are aiming to reach net sales of 150.0 billion yen, an operating profit of 12.0 billion yen, and an ROE of 10%. In fiscal 2024, the first year, we exceeded initial expectations with net sales at 129.8 billion yen and an operating profit of 9.3 billion yen. This was mainly thanks to the increased sales of primary batteries for automotive and medical devices, for which we have made investments for production capacity expansion, along with the favorable impact of the weak yen.

■Working to achieve the MEX26 targets

Promoting proactive investment in growth businesses and business portfolio reform

As we work toward the fiscal 2026 targets, our focus is on proactive investment in growth businesses and reforming our business portfolio.
　MEX26 plans for approximately 35.0 billion yen in growth investments over three years; we especially expect an increase in demand for primary batteries for automotive and medical devices in the medium to long term, and are actively investing to expand sales and significantly reinforcing our production systems. Moreover, when it comes to growth in our 3 focus areas, we are increasing our production capacity in the Mobility area, which will enable us to expand our supply of heatresistant coin-type lithium batteries in response to the demand for miniaturization of TPMS modules.
Furthermore, to respond to inquiries we are receiving with the increased demand for xEVs, we have introduced facilities to increase coated separator production. In the ICT/AI area, we are working to increase production capacity to respond to increased demand for our semiconductor DMS in line with the increase in semiconductor manufacturing equipment. In the Human/Social Infrastructure area, we are advancing the development and production investment of primary batteries for medical devices such as blood glucose meters, where demand is increasing in North America and China. We will also advance production investment in tapes for construction to capture global demand, aiming to expand sales in North America and Southeast Asia.

When it comes to batteries, the materials they use and their design and equipment concepts can be completely different, even if the batteries are of the same specification. Therefore, I anticipate synergy in product development as we incorporate each other's strengths.

Accelerating innovation to establish new businesses

　In the second half of fiscal 2024, we moved to the full-scale mass production phase for all-solid-state batteries. At the moment, our aim is to expand the scope of their application to industrial equipment and small devices, and fiscal 2024 saw all-solid-state batteries used in an image recognition unit, the development of modules for backing-up industrial equipment, all-solid-state batteries adopted in a wireless cooking temperature sensor device, and their use in a data logger that monitors the process of cleaning medical devices.
　All-solid-state batteries were originally developed by a small number of people within a business division, but in fiscal 2021 we established the New Business Producing Division by integrating the development teams from each business division and concentrated our resources. Initially, we did not expect to move to the mass production phase in three years, but the strengthening of our organizational capabilities accelerated development, and I strongly feel that this will contribute to new product development in the future. One of the strengths of all-solid-state batteries is their usability across a wide range of temperatures, and there is a significant need for use in hightemperature environments in particular. Proposals for battery units require time for customer performance assessments, so we have changed our approach to create our samples in line with the customer's purpose of use, allowing for quicker assessments. By shipping these samples and accumulating achievements in the markets, we will develop a wide range of applications including encoders for industrial robots and medical devices, and will steadily expand sales and production toward full-fledged contribution to our profit in the next mid-term management plan.
　I actually joined Maxell with a longing for cassette tapes and video tapes but was one of just two people of my cohort of 40 people to be assigned to the battery division. Now I am glad to have been assigned to the battery division, but back then I was disappointed. My senior ncouraged me by saying, "Batteries are part of the energy industry, and definitely won't disappear," and so I worked on development. Batteries only function as voltage and electric current, but they generate new value by changing conditions in accordance with their use, including temperature, humidity, lifespan, and size. Through batteries, Maxell's foundation business, we will realize new innovation.
　We are promoting development in product fields other than batteries through the New Business Producing Division. For example, EMC* countermeasure components, which absorb electromagnetic waves, are products that utilize magnetic powder used in magnetic tape. They are primarily expected to serve applications in the automotive sector, and we are working to expand sales. Moreover, our low-pressure foam molding technology (RIC-FOAM), which is under development, enables us to realize foams of engineering plastics and super engineering plastics, which had been difficult to use in foam molding. It can make components lighter, enable the creation of metal parts in plastic, and contribute to reducing the environmental burden. We will continue to steadily advance initiatives for commercialization.
　*EMC: Electromagnetic Compatibility

Focusing on caravan activities that will increase our technological contact with customers

In response to customer issues and demands in all fields, we are focusing our efforts on providing optimal solutions through technical sales capabilities that align technologies at a high level, and through our Monozukuri capabilities using our unique Analog Core Technologies. The mobility, social infrastructure, medical, and industrial fields in particular require high levels of safety, so careful alignment is needed, and this means that these are the fields likely to acknowledge Maxell's value. We have strengthened our caravan activities with engineers to increase technological contact with customers--we tripled the number of activities in fiscal 2024 compared with the previous year. When we visit customers, they raise themes that are very challenging--this is something I also experienced as an engineer. In response to these, I often created a way forward by making proposals such as "could we do it this way?" and "what about changing the conditions like this?" It is important to communicate and discuss ideas with customers, rather than saying something cannot be done, so we will take care to ensure a steadfast approach.

■Working to strengthen human capital and organizational capabilities

　We are focusing our efforts on developing and recruiting human resources to strengthen human capital and enhancing our organizational capabilities. With regard to human resource development, we are working to strengthen educational programs linked to management strategies and to foster a culture in which people are understanding of and cooperative with colleagues who spare some of their working time to undertake training. For recruitment, the Human Resources & General Affairs Department is strengthening acquisition of talented personnel by adding personnel who has experience in career recruitment. We are also promoting the recruitment of overseas personnel who have connections to the local market.
　In terms of strengthening our organizational capabilities, in fiscal 2021 we integrated the development teams of each business division to create the New Business Producing Division and combined the sales teams of each BtoB business division to form the Marketing & Sales Division; this ensured a shift to a company-wide cross-divisional organization and strengthened initiatives, but the effects have not yet become apparent in our sales performance. It takes time to launch new products, which involves acquiring customers and technical elements, so we will accelerate our growth strategies based on group-wide cross-divisional organization while managing progress using the number of customer contact points and customers to be acquired, as well as predictions of future sales.

■Providing value to the world through products that solve social issues

　Our customers are all working to solve social issues, so we provide optimal products in a form that aligns with their efforts. In the mobility area, we contribute to our customers' solutions to social issues through our products--for example, our coated separators, used in batteries for greening and the electrification of vehicles, and our ultrasonic cleaning lens unit, which works for autonomous driving even in bad weather. In the medical field, too, there is an increased need for primary batteries for blood glucose meters, as mentioned above. If a person cannot treat high blood glucose quickly, their condition may become serious, so the power source of a monitor is a product directly connected to human life--and Maxell's products, which combine high safety and energy density, are well regarded. Moreover, our all-solid-state batteries, which help make devices maintenance free, have a significant impact on society. If our customers can fully understand the strengths of these products, I believe that we can contribute to society and also increase our profits.

(Japanese)

• Integrated Report
• Mid-Term Plan MEX26
• Directors