In line with the establishment of MVVSS, we have articulated our Corporate Sustainability Vision, emphasizing the importance of relationships with diverse stakeholders to enhance long-term corporate value. In 2021, based on this concept, we newly identified the key issues (materialities) that Maxell should address. Furthermore, in 2022, we established KPIs to ensure the execution of action plans for each materiality. In 2024, we newly established KGIs and revised KPIs to demonstrate the Maxell Group's vision for 2030 to a wide range of stakeholders and deepen their understanding. We aim to connect these specific activities to solving key issues and further enhancing corporate value.

Addressing Key Management Issues through
Materiality Action Plans and KPIs

　July　　2020　　Establishment of MVVSS 　We aim to address solution of social issues unique to the Maxell Group under our new management VISION "Create Maximum Excellence for employees, customers and society by leveraging unique Analog Core Technologies"

　August 2020　　Formulation of the Corporate Sustainability Vision 　We articulated that we address long-term enhancement of corporate value and continuous creation of social, environmental and economic value, with emphasis on relationships with diverse stakeholders.

　August 2021　　Identification of Materiality 　We identified key issues that Maxell should focus on to realize our VISION.

　August 2022　　Formulation of Materiality KPIs 　We established KPIs to ensure the execution of action plans for these key issues.

　August 2024　　Establishment of new KGIs and revision of KPIs 　We newly established KGIs and revised KPIs to demonstrate the Maxell Group's ideal feature to be realized in 2030 to a wide range of stakeholders and deepen their understanding.

Materiality Analysis Process

STEP 1　Extracting Social Issues and Recognizing Company Direction

Identified and listed global social issues from various guidelines, aligning with the medium-term management plan and extracted 33 items as our ideal features in 10-20 years ahead, expectations from society as well as company issues.

STEP 2　Analyzing and Identifying Importance

Conducted surveys and interviews with stakeholders, executives, and employees of the Maxell Group to analyze the importance of the 33 items and narrowed them down further.

STEP 3　Evaluating from Stakeholder Perspectives

Collected feedback from investors, experts, and knowledgeable individuals to objectively evaluate important items for the company.

STEP 4　Selecting Importance at the Management Level and Deciding Action Plans

Selected 14 items that were important to both stakeholders and the company through discussions with directors, and narrowed them down to 7 items. Simultaneously, decided on 20 action plans necessary to solve the issues.

STEP 5　Internal Approval

The board of directors approved the 7 items and 18 action plans, determining them as key issues for Maxell.

Materiality Action Plan and KPIs

Regarding the Medium-Term Management Plan MEX23, 12 KPIs were set with 2023 as the target year, and 8 of these were achieved. For the new Medium-Term Management Plan MEX26, we established KGIs and revised KPIs to clearly demonstrate Maxell Group's ideal feature to be realized in 2030 to a wide range of stakeholders and deepen their understanding.

KGIs for 2030
[Management] Operating profit ratio: 10％
[Society] Ratio of female managers: 10％ / Employee satisfaction rate: 90％
[Environment] CO2 reduction: 50％

Results Legend
　◎ 100％ or higher: Achieved numerical and item targets
　〇 90-99％: Generally in line with plans with regard to medium- to long-term targets
　△ 89％ or lower: Unachieved / Challenges exist toward targeted fiscal year of achievement

01 Creating innovation through unique, original technologies

sdgs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE sdgs 17 PARTNERSHIPS FOR THE GOALS

MEX23　Action Plan
・Evolution of unique, original technologies that generate new value
　KPI　
　Number of patents related to next-generation development technologies: 1.5 times in five years (FY2026)
[Results] ◎

・Strengthen marketing for efficient R&D
　KPI　
　Sales proportion of highly profitable A and B businesses: Over 50％ (FY2023) [Results] △

・Strengthen partnerships to create new businesses
　KPI　
　Sales proportion of new businesses: Over 15％ (FY2030) [Results] △

MEX26　Action Plan
・Evolution of unique, original technologies that generate new value
　KPI　
　Number of patents related to next-generation development technologies: 1.5 times in five years (FY2022-FY2026)

・Strengthen partnerships to create new businesses
　KPI　
　Create 3 new products led by the New Business Producing Division (during MEX26)

02 Solving social issues through growth businesses

sdgs 3 GOOD HEALTH AND WELL-BEING sdgs 7 AFFORDABLE AND CLEAN ENERGY sdgs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE sdgs 11 SUSTAINABLE CITIES AND COMMUNITIES

MEX23　Action Plan
・Contribution to the advanced information society through 5G/IoTrelated businesses
・Contribution to advanced medical and health areas through healthcarerelated businesses
・Contribute to a safe and secure society brought by highly-reliable sensing through mobility-related businesses
　KPI　
　13 growth businesses in 3 focus areas: Overall sales growth ratio of 10％ (FY2023 vs FY2021) [Results] ◎

MEX26　Action Plan
・Contribute to a safe and secure society through mobility-related businesses
・Contribute to an advanced information society through ICT/AI-related businesses
・Contribute to human/social infrastructure
　11 growth businesses: Sales growth ratio of 20％ or higher (FY2026 vs FY2023)

03 Creating human resources and organizations that generate value

sdgs 4 QUALITY EDUCATION sdgs 5 GENDER EQUALITY sdgs 8 DECENT WORK AND ECONOMIC GROWTH

MEX23　Action Plan
・Strengthen management that leverages human resources (build a human resources strategy, promote the right person in the right place and talent management)
　KPI　
　Talent management system: Introduce to the Group companies by FY2026 [Results] 〇
　Career interview implementation ratio: 100％ [Results] △

・Establishment of a system for human resource development and evaluation that creates proactive human assets capable of creating something out of nothing
　KPI　
　Formulate human resources portfolio [Results] ◎
　Education for personnel evaluators: 2 times/year [Results] ◎

・Promoting diversity and inclusion (utilize diverse human resources and accept different values)
　KPI　
　Improve overall satisfaction ratio in employee awareness survey: 90％ or higher (FY2026) [Results] △
　Recruitment ratio of new female graduates: 50％ or higher for administrative jobs, 25％ or higher for engineering jobs [Results] ◎

・Improve productivity and promote the transmission of skills through the standardization of business processes
　KPI　
　Improve job satisfaction ratio in employee awareness survey: 90％ or higher (FY2026) [Results] 〇
　Achievement of the company-wide education plan:100％, ongoing [Results] ◎

MEX26　Action Plan
・Strengthen management that leverages human resources (build a human resources strategy, promote the right person in the right place and talent management)
　KPI　
　Talent management system: Introduce to the Group companies by FY2026
　Career interview implementation ratio: 100％
　Education for personnel evaluators: 2 times/year
　Improve job satisfaction ratio in employee awareness survey: 90％ or higher (FY2026)

・Establishment of a system for human resource development and evaluation that creates proactive human assets capable of creating something out of nothing
　KPI　
　Creation of skill maps for desired talent (FY2026)

・Promoting diversity and inclusion (utilize diverse human resources and accept different values)
　KPI　
　Encouragement for men to use childcare leave: 100％ usage rate (FY2024)
　Recruitment ratio of new female graduates: 50％ or higher for administrative jobs, 25％ or higher for engineering jobs

・Improve productivity and promote the transmission of skills through the standardization of business processes
　KPI　
　Reduce the total annual working hours of employees: 2.5％ reduction compared to FY2023 1,850 hours (FY2026)
　Achievement of the company-wide education plan: 100％, ongoing

04 Maximization of customer value

sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION

MEX23　Action Plan
・Transformation to manufacturing that solves the social issues ahead of customer issues
　KPI　
　Sales proportion of highly profitable A and B businesses: Over 50％ (FY2023) [Results] △

・Establishment of a system that prioritizes quality and product safety based on integrity
　KPI　
　Promote SQM (Super Quality Management for Maxell Group) and zero new recall cases [Results] ◎

・Enhancing the value of the Maxell brand's core products and services
　KPI　
　Implemented unification of the format of customer feedback in FY2022. Promote continuous improvement.
[Results] ◎

MEX26　Action Plan
・Transformation to manufacturing that solves the social issues ahead of customer issues
　KPI　
　11 growth businesses: Operating profit ratio: 15％ or higher (FY2026)

・Establishment of a system that prioritizes quality and product safety based on integrity
　KPI　
　Promote SQM (Super Quality Management for Maxell Group) and zero new recall cases

・Enhancing the value of the Maxell brand's core products and services
　KPI　
　Ongoing implementation of customer surveys and improvement of the points with low evaluations Improvement target: 50％ or higher (during MEX26)

05 Creation of economic value through environmental activities

sdgs 6 CLEAN WATER AND SANITATION sdgs 7 AFFORDABLE AND CLEAN ENERGY sdgs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE sdgs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION sdgs 13 CLIMATE ACTION sdgs 14 LIFE BELOW WATER

MEX23　Action Plan
・Strengthen environmental technologies and environmentally conscious products
　KPI　
　Define standards to show the degree of contribution to social and environmental issues, and visualize the progress of sustainability. Incorporate specific measures in the next medium-term management plan [Results]◎

・Conserving resources and energy, and promoting the introduction of renewable energy
　KPI　
　Domestic CO2 emissions: Reduce 50％ or more by FY2030 (vs FY2013) [Results]◎
　Renewable energy ratio: 10％ in FY2030 (= Renewable energy used/total electricity) [Results]◎
　Start considering contributions to the reduction of waste plastic from business sites (chemical / materials recycling) and incorporate concrete measures in the next medium-term management plan. [Results]◎

MEX26　Action Plan
・Strengthen environmental technologies and environmentally conscious products
　KPI　
　Define standards to show the degree of contribution to social and environmental issues, and approve products that exceed these standards as "Eco Excellence." Eco Excellence approval: 10 products or more (during MEX26)

・Conserving resources and energy, and promoting the introduction of renewable energy
　KPI　
　Domestic CO2 emissions: Reduce 50％ or more by FY2030 (vs FY2013)
　Renewable energy ratio: 15％ in FY2030 (= Renewable energy used/total electricity)
　Waste intensity per production: 0.0500 (tons/million yen) or less (FY2026)

06 Strengthening business portfolio management

MEX23　Action Plan
・Implementing portfolio strategies that anticipate market changes
　KPI　
　Sales proportion of new businesses: Over 15％ (FY2030) [Results] △

・Continuously improve the business portfolio through the two axes of market growth and business earnings (ABC-XYZ control)
　KPI　
　Sales proportion of highly profitable A and B businesses: Over 50％ (FY2023) [Results] △

・Promoting efficiency at global production bases
　KPI　
　Hold discussions on the current issues and future possibilities of each base from the perspective of production location and portfolio optimization. Incorporate concrete measures in the medium- to longterm management plan [Results] ―

MEX26　Action Plan
・Continuously improve the business portfolio through the two axes of market growth and business earnings (ABC-XYZ control)
　KPI　
　Sales proportion of A and B businesses*: 75％ or higher (FY2026 vs FY2023)
* "Resource Concentration Businesses" with high profitability and growth based on profit & loss control by business

・Promoting efficiency at global production bases
　KPI　
　Hold discussions on the current issues and the future possibilities of each base from the perspective of optimal production placement and portfolio optimization. Incorporate concrete measures in the medium- to long-term management strategy.

07 Strengthening group governance

MEX23　Action Plan
・Build effective governance in group management (deepen management)
　KPI　
　Further strengthen group governance by enhancing activities across the company, and by strengthening the operation of an appropriate management system, etc. [Results] ◎

・Implementing governance to maximize group synergies (technology, information, marketing)
　KPI　
　Create attractive value for the future by sharing information on markets and customers on a group-wide basis and by integrating technologies within the group. Integrate IT basis for basic business operation within the Maxell Group (FY2027) [Results] ◎

MEX26　Action Plan
・Build effective governance in group management (deepen management)
　KPI　
　Integrate IT basis for basic business operation within the Maxell Group (FY2027)

・Implementing governance to maximize group synergies (technology, marketing)
　KPI　
　Marketing: Creation of at least 3 new business development themes per year, reviewed across the Maxell Group
　Technology: Creation of at least 3 patents per year relating to synergies across the Maxell Group

(Japanese)