Yoshiharu Katsuta

To our shareholders and investors,

 Firstly, I would like to express my sincere gratitude for your continued support and patronage.

 Since we were re-listed on the First Section of the Tokyo Stock Exchange in March 2014, we have executed business restructuring for enhancing management basis. And at the same time, we have promoted various measures to expand our business in the growing markets.
 Also, in October 2017, we have transitioned to a holding company structure with a change of our corporate name to Maxell Holdings, Ltd. and established an independent management structure.

 At Maxell group, we have started three years' Medium-Term Management Plan MG20 (Maxell Growth 20) for the period of April 2018 - March 2021. We have set "Organic Growth" of the existing businesses and expansion of business area through "Maxell Business Platform (MBP)" as two pillars, and promoted measures for expansion of business and profit, as well as for enhancement of our corporate value.
 However, regarding the business results in the fiscal year 2018, we have struggled in achieving organic growth of existing businesses, although the net sales grew slightly, profits decreased compared to the last fiscal year. Therefore, we have reviewed current business environment again, and for the Medium-Term plan, we have revised its targets as MG20R. On the other hand, we think that the new structure of the group which we planned for the period of the Medium-Term Plan has been building up by inclusion of new operating companies for expansion of business area as the results of MBP.

 From now, under the business portfolio strategy, we will promote "Replacing Old with New" through selection and concentration and enhancement of profitability as basis of the business strategy.
 And regarding capital policy, we will pursue optimal capital structure and execute shareholder returns flexibly with total return ratio of 100% or above as reference during the period of MG20R.

 We will pursue maximization of corporate value by coping with changes of business environment and make our best effort to satisfy expectations of all the stakeholders including valued shareholders and investors.

 I would like to ask all the stakeholders for their continued support going forward.

June 2019



Yoshiharu Katsuta

President and Representative Director