Maxell, Ltd. · TSE:6810

Maxell — Hitachi Maxell — Investor Presentation (April 2006)

29 slides from Maxell's investor presentation, Apr 26, 2006

1. Slide 1: Medium-Term Management Plan – Change for Growth –

   Medium-Term Management Plan – Change for Growth – Yoshito Tsunoda President & CEO April 26, 2006 Hitachi Maxell, Ltd. All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

2. Slide 2: Contents

   Contents I. Medium-Term Management Plan Vision II. Medium-Term Management Plan Action Plan III. The Company We Aim to Be 2 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

3. Slide 3: I. Medium-Term Management Plan Vision

   I. Medium-Term Management Plan Vision 3 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

4. Slide 4: Medium-Term Management Plan Vision

   Medium - Term Management Plan Vision • Change for Growth: Evolving Maxell into a company with greater growth potential • FY2008 Targets: Net Sales 250 billions of yen, Profit Margin 6% • Further Pursuit of Scale and Profitability Moving toward FY2010 (50th anniversary) 4 All Rights Reserved, Copyrig

5. Slide 5: Growth Scenario: Growing Scale and Profitability

   Growth Scenario Growing Scale and Profitability Establishing Robust New Reconstructing and Businesses Early, and Newly Developing Acquiring New Technology Core Operations for the Future 5 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

6. Slide 6: Portfolio Changes

   Portfolio Changes FY2005 Sales: 204.1 billions of yen FY2010 18% 25% 19% 63% 50% 25% Information Storage Media Battery Material-Device-Electric Appliance 6 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

7. Slide 7: 2010 Profile: Operations for priority strengthening

   2010 Profile Operations for priority strengthening Optical Components Functional Materials etc. Net Sales Growth Rate ( -year period) 5 Optical Discs Batteries FY2010 Vision (all companies) Magnetic Tapes FY2005 actual results (all companies) Operating Income Margin Magnetic Tapes : Computer tapes,

8. Slide 8: Manufacturing Strength Underpins Maxell's Businesses

   Manufacturing Strength Underpins Maxell’s Businesses Core Analog Technologies X Personnel / Facilities / Processes =Manufacturing Strength Archive Information / Communications Thin optical discs Medical Care Hologram discs Nano - Print Functional materials Functional films Security Optical component

9. Slide 9: II. Medium-Term Management Plan Action Plan

   II. Medium-Term Management Plan Action Plan 9 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

10. Slide 10: Action Plan (numerical management targets)

    Action Plan (numerical management targets) Action Plan (numerical management targets) Operating Net sales ROE (%) (100 millions of yen) income FY2005 (results) 2,041 56 1.7 FY2006 (projected) 2,060 57 1.7 FY2008 (target) 2,500 150 5 or higher 10 All Rights Reserved, Copyright 2006 Hitachi Maxell, Lt

11. Slide 11: Action Plan for Vision Realization

    Action Plan for Vision Realization 1. Reconstructing and Newly Developing Core Operations 2. Developing Robust New Businesses Early, Acquiring New Technology for the Future 3. Bolstering and Exploiting Our Organizational Strength 11 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

12. Slide 12: 1. Reconstructing and Newly Developing Core Operations

    1. Reconstructing and Newly Developing Core Operations "Innovation and Speed" 12 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

13. Slide 13: Core Operations Development: Priority Areas for Strengthening

    1. Core Operations Development: Priority Areas for Strengthening Rigorously Grow Core Operations through Multifaceted Strategies Aspect Business Technology Sales Market Operations model Computer tapes Optical discs Primary batteries Lithium ion rechargeable batteries …area for strategic strengthenin

14. Slide 14: Core Operations Development: Computer Tapes

    1. Core Operations Development: Computer Tapes Priority Advance Development of Migration Paths Measures: • Develop world-first next-generation products consistently Specific • Achieve low costs for the world’s highest-quality Steps products through uncompromising pursuit of process- cost reductions

15. Slide 15: Core Operations Development: Optical Discs

    1. Core Operations Development: Optical Discs Priority Exploit New Business Models to Expand Measure: Next-Generation Products • Realize early establishment of robust businesses based on next-generation discs(HD-DVD, Blu-ray) Specific • Optimize balance between in-house production and Steps strategi

16. Slide 16: Core Operations Development: Primary Batteries

    1. Core Operations Development: Primary Batteries Grow Sales of Alkaline Dry Batteries Priority with View to Becoming Market Leader Measures: Specialize Micro Batteries for High-Value-Added Markets • Win new customers through advanced functionality alkaline dry batteries Specific • Heighten added va

17. Slide 17: Core Operations Development: Lithium Ion Rechargeable Batteries

    1. Core Operations Development: Lithium Ion Rechargeable Batteries Priority Leverage Leading-Edge Products to Measures: Expand Markets and Business Fields • Continue advance development of products with the world’s highest storage capacities Specific • Develop applications for non-cellular and mediu

18. Slide 18: 2. Establishing Robust New Businesses Early, Acquiring New Technology

    2. Establishing Robust New Businesses Early, Acquiring New Technology for the Future "Selection and Concentration" 18 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

19. Slide 19: Establishing Robust New Businesses Early, Acquiring New Technology

    2. Establishing Robust New Businesses Early, Acquiring New Technology for the Future New Businesses Early Functional Materials Establishing Robust Optical Components • Functional materials and films • Lenses, mini lens units, etc. (films for FPD use etc.) Optical design technology Dispersion / coati

20. Slide 20: Early Optical Components

    2. Establishing Robust New Businesses Early: Early Optical Components Priority Differentiate Technologies Measures: to Achieve High Added Value • Cellular telephones increasingly thin, light: high resolution, thin design • Wide viewing angle, thinness sought for Differentiated vehicle-mounted / moni

21. Slide 21: Early Functional Materials

    2. Establishing Robust New Businesses Early: Early Functional Materials Priority Specialize in Functional Materials for Displays Measures • Development of multifunctional optical films: optical design, dispersion / coating Differentiated • LCD luminosity enhancement films: Technologies high precisio

22. Slide 22: Future Technology: Thin-Type Optical Discs

    2. Acquiring New Technology for the Future: Future SVOD* Technology Thin-Type Optical Discs News Market • Business-use market, terabyte-class, large storage capacity for data archiving needs • Terabyte-class storage capacity (940GB~5TB) Features • Realization of 92-micron thin-type disc using propri

23. Slide 23: Future Technology: Fuel Cells

    2. Acquiring New Technology for the Future: Future Fuel Cells News Market • Growing demand for high-capacity, high output batteries • Growing demand for clean energy • System in which hydrogen produced by reaction between Features water and aluminum z Industry-leading output density through developm

24. Slide 24: Future Technology: Business Projects

    2. Acquiring New Technology for the Future: Future Business Projects • Selection of development themes for commercialization Business • Bring forward commercialization by clarifying strategies, Projects personnel, funds, and time-frames Commercialization Before Development Phase Phase Business Comme

25. Slide 25: 3. Bolstering and Exploiting Our Organizational Strength

    3. Bolstering and Exploiting Our Organizational Strength Revolutionizing Our Mind-Set 25 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

26. Slide 26: Bolstering and Exploiting Our Organizational Strength

    3. Bolstering and Exploiting Our Organizational Strength Fortify Corporate Strategy •Bolster departments tasked with corporate strategy formulation and implementation Communicate a Clear Vision • Clarify future direction, foster ambitious, out-of-the-box mind-set • Strengthen dialogue with employees

27. Slide 27: III. The Company We Aim to Be

    III. The Company We Aim to Be 27 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

28. Slide 28: The Company We Aim to Be

    The Company We Aim to Be Cultivate a Lively, Vigorous Company Strong, Capable · Creativity, practical skill, market-development muscle, and, therefore, earning power Free Atmosphere · Unconstrained work style, strong entrepreneurial spirit, lively debate Trend Setter · Maxell products that create ne

29. Slide 29: Toward Realization of Change for Growth

    Toward Realization of Change for Growth Vision Action Completion 29 All Rights Reserved, Copyright 2006 Hitachi Maxell, Ltd.

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