Maxell : Notice on Revision of Medium-Term Plan and Shareholder Returns
April 26, 2019 at 02:15 am
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FOR IMMEDIATE RELEASE
Notice on Revision of Medium-Term Plan and Shareholder Returns
Tokyo, April 26, 2019-Maxell Holdings, Ltd. (TSE: 6810) announced that the Board of Directors held today has made a resolution on revision of the medium-term plan for FY2018-2020, Maxell Growth 20 (hereinafter "MG20") originally announced on April 27, 2018 on the Company's website, along with shareholder returns during the MG20 period.
1.Reason for the Revision of MG20
The Company, as new Maxell group, has made efforts to achieve the targets as of FY2020; 200 billion yen of net sales, 15 billion yen of operating income and 8% of ROE, respectively specified in MG20 seeking to accelerate business expansion and sustained growth with independent management structure. However, the business performance has fallen short of these original targets in the first year of MG20 due to, for example, diminishing sales of lithium ion batteries for consumer market and beauty care products. Therefore, the Company revised MG20 taking the current business environment into consideration and will keep trying to achieve the original targets early years in the next medium-term plan (FY2021-2023).
2.Details of the Revision of MG20
Original targets as of FY2020
Revised targets as of FY2020
Net Sales
200 billion yen
173 billion yen
Operating Income
15 billion yen
10 billion yen
Operating Margin
7.5%
5.8%
ROE
8.0% or above
6.0% or above
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3.Shareholder Returns during MG20
The Company regards shareholder return as one of important management efforts, and under its fundamental policy, has been stably providing reasonable level of dividend, with a reference payout ratio of 30-40%.
Along with the revision of MG20, the Company has continuously discussed an optimal capital structure, maximization of its corporate value and improvement of ROE. As a result, the Company has come to a conclusion that the Company should enhance shareholder returns over the MG20 period (FY2019-2020) and hereby decided as follows:
Continuously provide stable and reasonable level of dividend, with a
Fundamental policy
reference payout ratio of 30-40% , reflecting business performance with
on dividend
comprehensive consideration of factors such as financial conditions and
investment plan in the future
Shareholder returns
Flexibly provide shareholder returns with a reference total return ratio of
during MG20
100% or aboveduring MG20 (FY2019-2020) with the aim of pursuing an
period
optimal capital structure
4.Period of Application of Shareholder Returns during MG20
The shareholder returns during MG20 period will be applied from FY2019.
(Reference)
Please access the Company's website for more information about the revision of MG20 and the shareholder returns.
http://www2.maxell.co.jp/ir/ir_news/
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Hitachi Maxell Ltd. published this content on 26 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 26 April 2019 06:12:19 UTC
Maxell Ltd, formerly Maxell Holdings Ltd, is mainly engaged in the manufacturing and sales of energy, industrial materials and electric appliances and consumer products. The Company mainly operates through three business segments. The Energy segment manufactures and sells secondary batteries, such as coin type lithium secondary batteries, industrial lithium ion batteries and electrodes, and consumer lithium ion batteries, primary batteries such as lithium primary batteries and button batteries, and charger and battery packs. The Industrial Materials segment manufactures and sells optical components, functional materials, electroforming and precision parts, semiconductor-related embedded systems, mold and synthetic resin molded parts, adhesive tapes, radio-frequency identification (RFID) systems and Integrated Circuit (IC) cards, industrial rubber products and others. The Electric Appliance and Consumer segment manufactures and sells projectors, small electric equipments and others.