Aigami：

The Board of Directors has shifted its focus to discussing growth strategies and improving corporate value, and detailed operational matters are now being delegated to the execution side and discussed at meetings of the Management Committee. The Executive Officer system has also been enhanced.
We, the Outside Directors, asked President Nakamura to further enhance discussions on improving medium- to long-term corporate value, and he has set aside some time after the Board of Directors' meetings so that we can have free discussions. We have been having frank exchanges of opinions about future growth strategies, and we are now able to have more in-depth discussions.

　　Murase：

That's right.
The Board of Directors has always had lively exchanges of opinions on management, but, even outside of the Board of Directors, I think that discussions on medium- to long-term themes, such as the MEX26 goals and efforts toward the 2030 goals, are being held in a more substantial way.

　　Hata：

I agree with both of you. Over the past two years, we have established the Executive Officer System and increased the number of Executive Officers, and as such I hope that at Management Committee meetings everyone will discuss matters not just from the viewpoint of their own department, but from that of the whole company, and exercise their insights.

　　Aigami：

I have also asked President Nakamura to encourage people to voice their opinions during the meetings, even if it means calling on people who have not spoken, and I have heard that the participants are now having lively discussions without hesitation or reservation.

　　Nakamura：

At Management Committee meetings I encourage participants to speak up. In the past, there was a strong mentality of being hesitant to voice opinions on other matters if one's own business area was not performing well, with a mindset of needing to focus on strengthening one's own department first. This made it difficult to have discussions that were optimal for the company overall. But now, perhaps because organizations like development and sales are more integrated, I feel that things are gradually improving.

Re-establishing KPIs to Steadily Implement Action Plans, and
Revitalization of Personnel Exchanges

　　Hata：

In formulating MEX26, Outside Directors participated from an early stage and discussions continued for about a year. During the current fiscal year, we discussed how to handle materiality in the future, taking into account the progress that we've made so far. Some of the action plans also had not defined KPIs or KGIs, so we reviewed and clarified them. By establishing deeply thought-out measures, employees will know what they are aiming for and what they need to do, and the company's overall ability to implement them will improve.

　　Aigami：

As a matter that is related to multiple materialities, the Outside Directors suggested that there is a need to move forward with actionable personnel exchanges and interbusiness transfers in order to increase employee engagement and synergies between business divisions, and we believe that this has been steadily implemented and is leading to company revitalization.
On the other hand, as Mr. Hata said, some of the KPIs and KGIs had not been sufficiently reviewed.
For example, one of the materialities is "Creating human resources and organizations that generate value," but we felt that the action plan was not being sufficiently implemented, so we reviewed it.

　　Murase：

In addition to revising the KPIs, this fiscal year we also set new KGIs so as to clarify the image that Maxell aims to achieve by 2030. One of the new KGIs is the ratio of female managers, and we expect that promoting human resources diversity will lead to revitalization across a wide range of Maxell's businesses.

　　Hata：

Maxell's business fields are wide-ranging, and combining them brings forth even greater strengths, so personnel rotations are important. It's difficult at first when you move to a different workplace, but we hope that through these difficulties the employees will grow, understand the differences and strengths of each business division, and gain the ability to make proposals that can solve customer issues.

　　Nakamura：

Yes. Some of the KPIs were only weakly linked to our final goals, so for the final fiscal year of MEX26 we revised the plan to quantify the ideal feature in 2030 and link the KPIs to it. We will continue to closely monitor progress on MEX26 and make improvements to areas that are lagging behind.

Toward Steady Progress on MEX26

　　Aigami：

In formulating MEX26, we had in-depth discussions based on SWOT analysis by each business division.
I think that each business division's understanding of the current situation has also become clearer. On the other hand, it is difficult to say that we had sufficient time to discuss medium- to long-term growth strategies, so we would like to continue discussing medium- to long-term initiatives, such as revitalizing personnel exchanges to create synergies between businesses, collaborations with other companies, and M&A.

　　Nakamura：

We were able to spend more time than previously on discussing how to utilize our strengths and how to achieve our goals by deeply analyzing the external environment such as trends in our markets, customers, and competitors.
As Mr. Aigami said, we did not have enough time to discuss M&A and external collaborations, so we will need to continue discussing these topics while sharing progress on the plan. Actually, a variety of proposals about alliances with external parties have already been made, and we will continue to consider creating synergies by utilizing the knowledge that we have gained through past M&A and alliances.

　　Murase：

When formulating MEX26, the leaders from each business division gathered together and listened to presentations on the business environment and policies of the other business divisions, which I think enabled them to deepen their understanding of each other's situations. In particular, we had numerous discussions about the reasons why we were unable to achieve our goals in MEX23. Based on that analysis, for MEX26 we are discussing major measures such as how to utilize our strengths to achieve steady growth and how to proceed with business replacement.
It is also important to confront our weaknesses and decide whether they are something we can overcome or something we should give up on.

　　Hata：

With MEX23, we lacked the ability to execute growth in some areas, so in MEX26 we are planning to focus investments on the growth fields that we have set. To boost the momentum of our growth strategy, it is important to lay the foundations for innovation. Innovation can be achieved by combining unique ideas with our strengths and our ability to discern the market's true needs. In order to achieve this, as President Nakamura is always saying, it is important for engineers to go out into the market and fully understand customer needs. Additionally, in order to know where and what Maxell's strengths are, we must rotate personnel. Knowing the strengths not only of your own business division but also those of other business divisions will enable us to meet customer needs.

　　Aigami：

Fostering the next generation of leaders is also important. Most of our current Directors and Executive Officers are in their 50s, but we also have many excellent people in their 40s who have a strong sense of management and who serve as presidents at subsidiaries and overseas sales companies and plant managers. I am convinced that these people will be a major driving force for Maxell in the future, and I think that the company will become even more vibrant if we create forums for them to express their opinions, such as by having them attend Management Committee meetings as observers.

　　Murase：

By rotating personnel, employees can gain experience in a variety of businesses, which also improves their leadership skills. One of Maxell's strengths is that we develop a wide range of businesses based on our unique Analog Core Technologies. I believe that by experiencing a variety of businesses, employees will develop the ability to take on management roles that leverage Maxell's strengths.

　　Nakamura：

During MEX23, we started by horizontally connecting the functions that existed in each business division so as to strengthen the horizontal connections between business divisions and between people. For example, we rotated manufacturing managers between plants and business divisions.
Then, in 2022, we implemented the "Step 26" project, selecting employees from across the company, primarily those in their 40s, and having them formulate a mediumterm management plan for 2024 and beyond. I think that the connections made there will serve as a foundation for exchanges across business divisions in the future, and I would like us to continue to work on stimulating horizontal exchanges.

MEX26 is a Period of Great Progress. Achieving the 2030 Goals with "One Maxell"

　　Hata：

The President, Executive Officers, and division heads will clearly communicate and instill the aims, measures, and management ideas of MEX26 so that each employee can exercise their capabilities. This will give the company the ability to execute, and will also lead to personal growth, increased motivation, and enhanced engagement. I feel that this vertical communication within the organization has fostered a sense of One Maxell, but, at the same time, I also feel that the connection between Maxell itself and the Group companies is still weak. It is important that Group companies work together in the same direction.

　　Aigami：

My impression of Maxell is that there are many people who are serious, very responsible, and act prudently, but I feel that the people involved in IP and new business development are resolute, down-to-earth, and passionate. If we provide people like this with responsibility and opportunities, and stimulate horizontal communication through cross-divisional organization, then I think we will develop leaders who will be successful in the future.

　　Murase：

If you only look at the performance trends during the MEX23 period, then it may seem like there has been no growth, but the substance of our business has dramatically changed.
Based on our strengthened foundation, MEX26 is a growth phase toward 2030. One of Maxell's strengths that will promote growth is our outstanding ability to achieve the themes set by customer requests. However, there are also times when I feel that only our technological capabilities are growing, and that there may be a slight disconnect as to whether or not we are meeting the needs of society. I believe that proposing solutions that address the potential needs of our customers and creating new value will lead to growth toward 2030.

　　Nakamura：

The development of all-solid-state batteries was extremely difficult from a technical point of view, but their development has progressed beyond what I imagined. As our customers have praised our results and placed high expectations on us, the employees involved in these efforts have gained confidence and are working with a positive attitude. I hope that this success story, of taking on a challenge and overcoming such high hurdles, will motivate all of our employees. By fostering a culture of taking on difficult challenges in this way, the Maxell Group will work as one to achieve steady growth toward our goals.