Maxell : Q&A Summary

Periodical Q & A at the presentation of consolidated financial results for the fiscal year ended March 31, 2026 and updates on MEX26 (Presented on April 27, 2026)

April 27, 2026

Q. What silver price assumption is used in the FY2026 plan?

A. The FY2026 plan was formulated based on the silver price levels from January to March 2026. Since prices during this period were close to their peak, the assumption is to maintain that level.

Q. What is the status of negotiations with customers regarding passing on the impact of surging silver prices?

A. We are aiming to introduce a mechanism that automatically links silver market prices to selling prices, and we have made progress in reflecting a certain portion in prices by sharing with customers the impact of procurement costs on selling prices. Even if the recent surge in silver prices continues, we are in a position where we can aim to recover the impact after a certain period and turn positive.

Q. Looking at the Energy segment's profit trend in 2H FY2025, it appears that there was an impact of about 350 million yen from surging silver prices in 4Q. Is that understanding correct?

A. For 4Q on a standalone basis, that understanding is generally correct.

Q. In the FY2026 Energy business, what are the main factors behind achieving operating profit of JPY 800 million per quarter?

A. The main factors are the elimination of losses in the rechargeable battery business, growth in the primary battery business where demand is strong, and the contribution from the primary battery business acquired from Murata Manufacturing (Maxell Sakura). The only concern is the surge in silver prices, and we are working to minimize its impact.

Q. Has there been any change in the recovery outlook for semiconductor DMS compared with three months ago? Also, around when is the full-scale recovery expected?

A. From Q4 of FY2025, a recovery trend in actual demand has become clearly

visible in the form of orders, and we expect the strong recovery trend to continue from FY2026 onward. On the other hand, some semiconductor components

remain difficult to procure, and parts sourcing has become an issue.

Q. How has the deterioration of the situation in the Middle East been incorporated into the business plan for FY2026?

A. As a risk, we expect an impact of several hundred million yen in 1Q, but we will reflect increases in raw material and other costs on selling prices and aim to catch up over the full year. Therefore, in this full-year outlook, we have not singled out and reflected any specific portion of that impact.

Q. Have procurement difficulties and surging transportation costs caused by the situation in the Middle East become apparent recently?

A. Rising material costs and difficulty in procuring some materials have occurred, but the impact on 1Q is not so significant, and we are focusing on measures from 2Q onward.

Q. Excluding all-solid-state batteries, how does the new mid-term management plan intend to grow the rechargeable battery business?

A. After the end of production of prismatic lithium-ion batteries (LIB), the rechargeable battery business will consist only of all-solid-state batteries.

Q. What is the background behind the Functional Materials business and the Value Co-Creation business falling short of the targets in the mid-term management plan?

A. The Functional Materials business fell short because its base businesses, such as packaging tape, struggled due to price competition with overseas competitors and rising costs. The Value Co-Creation business fell short because, although highly profitable hydraulic tools performed well, health & beauty care products were sluggish due to the impact of U.S. tariffs and other factors.

Q. In the plan for HY2026, what will be the impact from Maxell Sakura, which will be newly consolidated into the Energy segment?

A. Due to the new consolidation of Maxell Sakura, net sales are expected to increase by approximately 12.0 billion yen, and operating profit after goodwill amortization is expected to increase by several hundred million yen.

Q. Considering the contribution from Maxell Sakura, existing businesses will show a decrease in revenue, but what is the background behind this?

A. The factor behind the decrease in revenue is that prismatic lithium-ion

batteries, which continued to be sold in FY2025 even after production ended, will no longer be available in FY2026.

Q. What is the planned net sales amount for all-solid-state batteries in FY 2026?

A. Net sales of all-solid-state batteries in FY2026 are expected to be several hundred million yen.

Q. What is the breakdown of the plan for a 400 million yen increase in operating profit in the Optics & Systems business in FY2026?

A. The main factor behind the increase in profit is the recovery of the DMS business. On the other hand, license revenue will be a factor for decreased profit because the one-time revenue recorded in FY2025 will no longer be present. The impact on profit from the transfer of the EF2 business is minimal.

Q. What is the strategy for utilizing the battery factories acquired from Murata Manufacturing, and what synergies are expected?

A. The Company will grow the business by leveraging the strengths of each factory (Ono for lithium, Koriyama for silver oxide). In the short term, it aims to improve sales and profitability through mutual supplementation of production capacity, and in the medium to long term, it will strengthen development capabilities through exchanges among engineers.

Q. With the acquisition of Murata Manufacturing's primary battery business, how will the market share change for TPMS (tire pressure monitoring system) and for medical devices?

A. For TPMS, including the former Murata Manufacturing portion, we envision the market share to be just under 80%. For medical applications, market figures are difficult to capture, and we do not have a precise grasp of the share.

Q. Why do you believe that, unlike in past periods of high crude oil prices, it will be possible this time to pass on the increased costs caused by the situation in the Middle East?

A. One reason is that management is strongly committed to passing on the cost increases to selling prices. Another reason is that this time, the issue affects the entire global market, including our competitors, not just our company, which

creates an environment more conducive to gaining understanding for price pass-through.

(Lastly),

As I mentioned today, we expect changes in the external environment to become quite significant. However, by quickly identifying changes in the external environment and taking prompt action, we are determined to secure the sales and profits for the final year of the current mid-term management plan without fail.

We would appreciate your continued support. Thank you very much for your time today.