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 23, 2023.

Fiscal 2023 is the final year of "MEX23", our medium-term management plan for the three years from fiscal 2021 to fiscal 2023.
In our business forecasts for fiscal 2023, operating profit is expected to be 7.5 billion yen and operating profit ratio 5.6%, which are far less than MEX23's initial targets (operating profit of 12.5 billion yen and operating profit ratio of 10%), due to continued increases in the cost of raw materials, electric power, and other costs, in addition to the deteriorating economic environment caused by the prolonged impact of COVID-19. We will enforce cost reduction measures even more than before, and will continue to properly reflect the portion that cannot be covered by our own efforts onto selling prices to ensure the achievement of this forecast.

With regard to the business portfolio reforms, following the significant downsizing of projector business in fiscal 2021, we are promoting reforms in Life Solution business centered on the domestic BtoC sales in fiscal 2023, and are planning to accelerate the shift to a business structure centered on the more profitable BtoB business.
In the next medium-term management plan, which will start from fiscal 2024, we are reinforcing growth investments including capital investments in order to realize the contribution of new businesses and products, such as all-solid-state battery to the business performance of the Company. In addition, we are implementing stable and continuous measures of shareholder returns.

Going forward, we entire management team 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 2023


Keiji Nakamura
President and Representative Director
Maxell, Ltd.