With Shareholders and Investors
Maxell has set up a PR & IR Department under the Corporate Communications Division to manage Investor Relations (IR), and is enhancing IR activities which prioritize communication with domestic and international shareholders and investors through organic collaboration with relevant departments, thereby aiming to improve both corporate and brand value. By disclosing information on management policies, business strategies, and financial and non-financial matters in a timely and appropriate manner, we aim to deepen understanding of Maxell Group and build a long-term relationship of trust through constructive dialogues. Also, we think it is important to promote proactive dialogues with shareholders and investors and to share interests and opinions of shareholders and investors with executives and head of business divisions, and to reflect such interests and opinions to management of the Group. In addition, we strive to prevent insider trading in order to contribute to the protection of our shareholders and investors and the formation of a sound stock market.
Interactive Dialogue with Shareholders and Investors
Direct Dialogue through Briefings and Meetings
Maxell is actively engaged in IR activities, including holding various IR events for shareholders and investors. In addition to quarterly financial results briefings, we strive to enhance constructive dialogues by participating in medium-term management plan briefings and small meetings, IR conferences sponsored by securities companies and corporate briefings for retail investors, and by having meetings with domestic and overseas institutional investors and analysts by executives and the IR section from time to time.
Furthermore, with the aim of enhancing dialogues with domestic institutional investors and other major shareholders (SR (Shareholder Relations) meetings) toward the Annual General Meeting of Shareholders, in addition to IR section and Legal section, Sustainability section and Human Resources & General Affairs section have participated in the dialogues since 2022.
Progress of Dialogue with Shareholders and Investors by Executives
Business Briefing (June 5, 2024)
Presentations at quarterly financial results briefings are given by president, and other executives and head of business divisions are also giving presentation on business and financial strategies at business briefings and medium-term management plan briefings. Furthermore, Maxell is promoting proactive dialogues with domestic and overseas shareholders and investors, by having 1 on 1 and small meetings, and SR meetings attended by executives. At the 1 on 1 meetings, president and financial director are holding dialogues. In fiscal 2024, the key discussion topic was the mid-term management plan announced in June, and we are making efforts to explain matters of interest to shareholders and institutional investors to enhance their understanding.
| Form of Dialogues, Events (Fiscal 2024 results) | Times | ||
| Total | Executives attended | ||
| 1 on 1 meeting with institutional investors | 235 | 23 | |
| Meeting with domestic institutional investors | 166 | 1 | |
| Meeting with overseas institutional investors | 59 （25） |
22 （8） |
|
| SR meeting (*2) | 10 | - | |
| Financial results briefing, business briefing (for analysts, institutional investors) |
5 | 5 | |
| Company introduction, other small meetings | 5 | 3 | |
| Company introduction for retail investors | 1 | 1 | |
| Business Strategy | Outlook of mid-term management plan ・Strategy of growth businesses ・Mass production and sales of all-solid-state batteries ・IP strategy Impact of import duty in the USA |
|---|---|
| Portfolio Management | Progress of business portfolio management and future directions ・Change of reporting segment ・Concentration to businesses based on Analog Core Technologies ・Initiatives on low-profit businesses to improve profitability |
| Business Reform | Business reform plan toward enhancement of portfolio management Future strategies following the discontinuation of prismatic Lithium-ion Battery production |
| Financial Strategy | Cash allocation principles during Mid-term Management Plan period ・Policy on shareholder returns ・Investment plan for growth businesses and new businesses |
| Sustainability | Progress of environmental value creation, e.g. CO2 reduction Initiatives to enhance human capital Thoughts on obtaining SBT certification Progress of human rights due diligence (HRDD) |
| About realization of management that is conscious of cost of capital and stock price | Measures for achieving a PBR of over 1.0 x ・Initiatives to improve capital efficiency ・Strategies for generating profits surpassing capital costs ・Direction of financial strategy towards efficient management |
Disseminating Information through Various
IR Tools and Enhancing Disclosure in English
Maxell actively communicates with shareholders and investors through a variety of IR tools, including integrated reports, reports for shareholders, financial results briefing materials, and investors' guide. In addition, in consideration of fair disclosure, to and to avoid differences in information between domestic and overseas, we make timely disclosures on summary of financial results, both decided and occurred facts important for management, and integrated report in English as well as in Japanese on company websites of Maxell and of Tokyo Stock Exchange. We also post English presentation materials of financial results briefings, business briefings and medium-term management plan briefings on Maxell website.
We will further strengthen the dissemination of this information in light of the medium- to long-term interests of our shareholders and investors.
Reflecting the Opinions of Shareholders and Investors
Systems for Reflecting the Opinions of Shareholders and Investors
The opinions, interests and concerns of shareholders and investors identified through dialogues are reported to our executives in a timely manner according to their content. In addition, information related to our business, such as market and technological trends, is fed back to relevant divisions within the Group as appropriate to assist in business activities.
Since fiscal 2018, we have held various seminars for executives and managers. In the past, we held study sessions on the latest trends in SDGs, inviting experts and heads of sustainability strategies from other companies, and study sessions on the automotive and semiconductor markets, which are closely related to the Group's businesses. Going forward, we will continue to share the opinions of the capital markets, including shareholders and investors, throughout the Group and utilize them in our business strategies and capital policies.
| Way of feed back | Major points of reports | Improvement examples | |
|---|---|---|---|
| ・IR Reports to directors, head of business divisions ・IR reporting to directors Annual number of reports 4 |
Status of shareholders, stock markets Investors' points of interest | Management policy | Redefinition of Management policy |
| Business strategy | Portfolio strategy, measures to unprofitable businesses Direction of medium-term management plan Formulating strategies for improving profitability towards enhancing corporate value |
||
| Financial strategy | Promotion of management with awareness of capital cost (Introduction of ROIC management) Formulating financial strategies for efficient managemant |
||
| ・SR reporting to directors Annual number of reports 1 |
Matters pointed out by investors relating to ESG | Financial strategy | Definition of policy on Cross-Shareholdings |
| Governance | Disclosure of Skill Matrix and improvement Review of evaluation items for Director remuneration |
||
| Sustainability | Enhancement of awareness on environmental activities and enforcement of measures Carbon neutrality declaration Submission of commitment letter for SBT certification Improvement of external evaluations on ESG |
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Return to Shareholders
Maxell's basic policy on distribution of profit is to implement three balanced measures: returning profits to shareholders, current short-term investments, and growth investments with an eye to medium- to long-term business development. Our basic policy on direct shareholder returns is to pay continuous and stable dividends, with dividend payout ratio of 30％ to 40％ for ordinary dividends, and to pay dividends twice a year, interim and year-end dividends.
During the period of the mid-term management plan MEX26 from fiscal 2024 to fiscal 2026, we aim to enhance corporate value through strengthening shareholder returns with a target of total payout ratio of over 100％. For fiscal 2024, we implemented dividend of 25 yen per share for the interim and 25 yen for the year-end (total of 50 yen annually), in line with our dividend forecast. Additionally, we have conducted share buyback of 5 billion yen in fiscal 2024.
Moving forward, through thorough financial discipline, we will identify growth businesses and continuously review business portfolio and promote business replacements. At the same time, for capital investments, we will focus on strengthening growth businesses and creating new businesses in the future, thereby increasing the profitability of Maxell Group as a whole and achieving higher returns to shareholders.