Director

To our shareholders and investors,

Firstly, I would like to express my sincere gratitude for your continued support and patronage. I am Keiji Nakamura and will continue to serve as president of the Company after approval at the Annual General Meeting of Shareholders held on June 25, 2026.

Fiscal 2026 is the final year of the Mid-term Management Plan "MEX26" of the Group. Our financial forecast for fiscal 2026 is expected to fall below the original MEX26 targets of operating profit of 12.0 billion yen and operating profit margin of 8.0%, with operating profit of 10.0 billion yen and operating profit margin of 7.0%, mainly due to the delayed recovery of the market for the semiconductor DMS business compared with our initial assumptions. However, we expect to achieve the expansion of growth businesses in which we have made large-scale investments, as well as the strengthening of shareholder returns with a guideline of a total payout ratio of over 100% during the MEX26 period.
The Group will continue to strengthen the promotion of its business and financial strategies from fiscal 2026 onward. In our business strategy, we will accelerate portfolio reform and concentrate management resources on the highly reliable small battery sector, including all-solid-state batteries, while pursuing the front-runner strategy aimed at becoming the global No. 1 in both scale and advanced technology. In our financial strategy, with a focus on the small battery sector, we will also advance targeted growth investments in Functional Materials and in Optics & Systems businesses as well, while continuing proactive shareholder returns, thereby achieving both growth investment and shareholder returns at a high level.

Going forward, management team and all employees will do its utmost to make the Company to become "Value-Creating Company" that provides the highest value to all stakeholders, including shareholders and investors.

I would like to ask all of you for continued support.

June 2026

Director

Keiji Nakamura
President and Representative Director
Maxell, Ltd.

(Japanese)