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Integrated Report 2018 1 Integrated Report 2018 1 The latest information on the Maxell Group can be found on our website. Editorial Policy This report is issued for the purpose of sharing the vision of the Maxell Group, where business is based on harmonious coexistence with society. This is an integrated report that goes over the Group’s businesses and financial results as well as its CSR activities and the outcomes of these activities. This report, in the wake of the Maxell Group’s transition to a holding company in October 2017, is aimed at renewing stakeholders’ under- standing of the strengths of the new Maxell Group, the overall vision and specific measures of its new Mid-Term Plan, and the connection between both CSV business management and CSR activities and our business strategy, which is geared toward sustainable growth. The Group has worked hard to win support for its position on co-creation and co-prosperity as well as to foster anticipation for and confidence in the Group’s growth, and will continue to do so. Moreover, we include ESG information, which forms the foun- dation of corporate management, as a way to fulfill our social responsibility to all stakeholders and demonstrate the Maxell Group’s stance toward corporate governance, protection of the global environment, and social contributions. Detailed financial and CSR-related information that could not be Regarding Support for Disasters in published in full in this report is disclosed on the Company’s website. For Viewing via PDF Summer 2018 Category tabs, navigation buttons, and link buttons have been provided on each page for easy access to related pages and websites. Reporting Period: We express our deepest sympathies to those suffering due to the This report primarily covers fiscal year 2017 (April 1, 2017–March heavy rain of July 2018, Typhoon No. 21 in September of the same 31, 2018). However, it includes some events from fiscal year 2018. year, and the 2018 Hokkaido Eastern Iburi Earthquake. • Category tabs To support recovery efforts for the heavy rain in July, Maxell has Referenced Guidelines: donated 3 million yen through the Japanese Red Cross Society. International Integrated Reporting Council (IIRC) In addition, in cooperation with Ken Noguchi office, presided Click the category tab to access the appropriate page. The International <IR> Framework over by alpinist Ken Noguchi, Daisaku Shoji Ltd. provided 10,000 *1 GRI Sustainability Reporting Guidelines neck type fans to sufferers as a measure against heatstroke. Maxell T he Ministry of the Environment’s Environmental Reporting *2 donated AA batteries for these fans. In addition, we made a • Navigation buttons Guidelines (2018) monetary donation of ¥1 million for the 2018 Hokkaido Eastern Click this button to move to the next page. T he Ministry of the Environment’s Guide for Contents to Be Iburi Earthquake through the Japanese Red Cross Society. Click this button to move back to the previous page. Disclosed in an Environmental Report, Third Edition (May 2014) We pray for the safety of those affected and hope the afflicted Contents Click the “Contents” button to move to the Table of Environmental Consideration Law areas are restored and reconstructed as quickly as possible. Contents. ISO26000: 2010 Moving forward, the Maxell Group will cooperate however *1 International sustainability reporting guidelines compiled by the Global possible to support activities in the affected areas. Reporting Initiative • Link buttons *2 The wearable "MYFAN MOBILE" fan provided by Daisaku Shoji Ltd. uses three AA size batteries. Maxell has provided 10,000 4-packs of “VOLTAGE” Click this button to access the relevant link. Issued: October 2018 AA alkaline batteries. 2 Contents 3 Introduction 21 Special Feature 1: The Maxell Group’s Core 25 CSR Initiatives Competence 3 The History of the Maxell Group 26 CSR Management 21 Product Development Leveraging Our Strengths: 4 The Maxell Group’s Core Competence Example (1) 27 With Customers 5 The Maxell Group’s Products In-car camera lens units 28 With Business Partners 22 Product Development Leveraging Our Strengths: 6 The Maxell Group’s Strategies Example (2) 29 With Employees 7 The Maxell Group’s Social Responsibility Coin-type lithium ion rechargeable batteries 31 With Shareholders and Investors 8 The Maxell Group’s Value Creation Model 32 With Local Communities and Society 9 Financial and Nonfinancial Highlights 33 With the Environment Special Feature 2: The Maxell Group’s CSV 23 35 Accomplishments and Progress of Business Management Environmental Activities 23 CSV Example (1) 36 Environmental Data 10 Messages from the Chairman & the President Contributing to safety and peace of mind when driving with our Super AR* Head-Up Display 10 Message from the Chairman 24 CSV Example (2) 11 Message from the President Supporting the industrial use of drones with our Corporate Governance safe, high-power “Intelligent Battery” 37 24 CSV Example (3) 38 Corporate Governance Enhancing the quality and efficiency of 13 Summary of Previous Medium-Term agriculture with our crop growth support 41 Directors and Executive Officers Management Plan and New Mid-Term Plan system, “Rice scan” service 42 Messages from Outside Directors MG20 14 Summary of Fiscal Year 2017 Business Results and New Mid-Term Plan MG20 15 Promoting the Maxell Business Platform (MBP) 43 Basic Data 16 Heightening the Value of the Maxell Brand 44 Consolidated Financial Information 17 Segment Information 44 Key Financial Data 17 Energy 45 Segment Information 18 Industrial Materials 46 Consolidated Financial Statements (Summary) 19 Electronic Appliances and Consumer Products 48 Maxell Group Network 50 Corporate Data / Stock Information 3 The History of the Maxell Group Since its foundation in 1961, the Group has honed analog core technologies—its core competence— 1996 2000 2010 2016 Began production of Began shipments of world’s Became wholly owned subsidiary of Developed world’s brightest (3,500 to create unique and differentiated products that have brought an array of excitement to daily life. lithium ion batteries first 100-gigabyte-storage- Hitachi, Ltd. as a result of tender lm) LED DLP projector, CP-WU3500 Also, by steadily conducting CSR (corporate social responsibility) activities that reflect the changing capacity data cartridges offer by and exchange of shares with technical conformity with Hitachi, and delisted from first 2017 needs and expectations of society, we continue to heighten the trust placed in us by society. certification, LTO Ultrium1 sections of Tokyo Stock Exchange Made Maxell System Tech Co., Ltd. and Osaka Securities Exchange a subsidiary through acquisition of 2007 shares Made Sliontec Corporation 2012 1961 1976 1980 a consolidated subsidiary Merged five domestic 2018 Nitto Electric Industrial Commercialized first Listed on first sections of 1998 through acquisition of shares consolidated subsidiaries Acquired specialty business within Co., Ltd. (currently Nitto domestically produced Tokyo Stock Exchange and Marketed world’s first 2018industrial batteries and power sources Denko Corporation) spun 8-inch floppy disks, Osaka Securities Exchange rewritable DVD-RAM discs 2009 2013 business of GS Yuasa International Ltd. off its dry battery and FD3200S Developed world’s smallest Transferred LCD Projector magnetic tape divisions to 1983 micro-camera lens units Business from Hitachi Consumer Made Izumi Products Company a start operations Began manufacturing first incorporating piezo actuators Electronics Co., Ltd. subsidiary through acquisition domestically produced Made Hitachi Joei Tech Co., Ltd. of shares lithium thionyl chloride 1963 and Hitachi Digital Products China (ER) batteries for memory Manufactured first Co., Ltd. consolidated subsidiaries domestically produced backup use October 2017 alkaline dry batteries 2014 1987 Transitioned to holding Relisted on the first section of Launched world’s smallest company structure 1966 Tokyo Stock Exchange diameter (4.8 mm) silver Marketed first In October 2017, the Maxell Group oxide batteries, SR421SW Began accepting orders for domestically produced transferred to a holding company and SR416SW world’s smallest and lightest audio cassette tapes (C-60) structure. Leveraging the resulting electricity storage system autonomy, the Group is strengthening compatible with use in HEMS business management and advancing (home energy management Our History of along an entirely new growth stage. Operations 1961 2000 system) and dedicated controller Our History of 1980 2015 CSR Activities 1972 1983 1990 2000 2007 2015 Established Pollution Established Maxell Group Established Maxell Introduced environmental Received Eco-Rail Mark Established Corporate Governance Control Committee Corporate Credo Education Trust accounting accreditation for Dynamic and Guidelines Epsialpha alkaline dry batteries Issued Integrated Report 2015 1977 1991 2003 Kyoto Works certified as Established Environmental Established Environment Began Maxell Compliance Eco Kyoto 21 Meister Management Regulations Committee Helpline 2008 1996 2005 Won Minister of Environment Established Environmental Established Maxell Group Award for Kyoto Works’ 3R (reduce, Conservation Action Policy on CSR Activities reuse, and recycle) program Guidelines and Initiatives Established Personal 2010 1961 1998 Information Protection Received Minister of Economy, Established Maxell Group Guidelines Trade and Industry Award at 19th 2018 ethics guidelines Global Environment Awards Established Internal Received S rank evaluation for Established
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