Mid-term Plan MG20 Optronics Division

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Mid-term Plan MG20 Optronics Division May 29, 2018 Masaharu Deguchi Director and General

2 Net Sales Operating Income 1. MG20 Mid-term Management Plan MG20 Target Net Sales 135% (vs FY17) Operating Income 630% (vs FY17) Sales Operating Income FY2020 OP margin target:8% FY2014 FY2017 FY2020 FY2014 FY2017 FY2020 MG20 Business Policy 1. Recover profitability of the projector business(fy18) 2. Invest into growing business and new products (In-Car Camera Lens Unit, LED Headlamp Lenses, HUD etc.,) All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 2

3 2.Optronics Div. Product Strategy Products Strategy Sales Projector SSL* High end Intensive development in fast-growing SSL projectors Full line-up of self-developed models(fy20) Operating Margin Home Life & Infrastructure Lamp Volume Zone Discontinue unprofitable models (FY18) Improve sales price by replacing with SSL (LED) models EOL* EOL Home Life & Infrastructure Visual System Package sales of projectors and various peripherals to education, digital signage Automotive In-vehicle Business Offer technology integrated device such as in-vehicle/road surface projection applied from projector s image correction technology (Joint development with automakers) Automotive Automotive In-car camera lens unit LED Headlamp lenses Expand lens line up for sensing camera in the growing "ADAS (Advanced Driver-Assistance Systems) market Respond to the growing volume demand and design variation of LED headlamp, and add values by developing LED module assembly * SSL: Solid State Lighting *EOL: End Of Life = Discontinue All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 3

4 SSL proportion ($ value based) Number of unit 3-1. Projector (Reflection and Challenges) 1. FY16 Quake aftermath FY16 Market share down Forced to postpone new (SSL) model development FY16/17 cost reduction target not achieved Market share 10% 7% Budget Result Θ30% 2. Rise of SSL projectors Faster-than-expected switch over to SSL projectors Lamp model sales reduced 60% 40% 20% 0% 54% Result and updated forecast 43% 35% 28% 16% 28% 34% 22% 16% FY15 Forecast 10% FY16 FY17 FY18 FY19 FY20 All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 4

3-2. Projectors Market Size and Growth B2B PJ Market :Flat SSL PJ Market:Growing at 130%/yr WW PJ Market ($ value) PMA Research 2017Q2 FCT [B$] 5.5 5.8 16% 6.3 6.8 7.2 Lamp SSL 4.4 4.4 4.5 4.6 4.

5 3-2. Projectors Market Size and Growth B2B PJ Market :Flat SSL PJ Market:Growing at 130%/yr WW PJ Market ($ value) PMA Research 2017Q2 FCT [B$] % Lamp SSL % '16 '17 '18 '19 '20 Market Share Target WW Share (SSL) >10% Maxell's current target market : Over 2,000lm (excl. B2C) B2C (2K/4K) Lamp SSL Technical Strengths Optical technology High efficiency illumination system, High resolution projection lens etc., Image processing technology HDCR*,Super resolution, Multi-axis color correction etc., High efficiency cooling technology *HDCR: High Dynamic Contrast Range Policy and Challenges 1. Recover profitability (1)Shift to high profit SSL models (EOL commoditized low profit lamp models) (2)Cost reduction(saving by joint development) (3)Increase sales (Add OEM, Enter to 4K market) 2. Enhance imaging business (Visual System/In-vehicle business) MG20 Business Plan Objectives OP Margin FY20 > 5% Imaging Business Sales > 3Billion yen All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 5

6 Sales OP Margin 3-3. Imaging Business Plan Recovery of projector business profitability [3%] [>5%] [ ー 6%] FY17 FY18 FY20 Enhance imaging business (Application of projector technology) Visual system In-vehicle business [>3 Billion yen] [0] FY17 FY18 FY20 All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 6

4. In-Car Camera Lens Unit [M pcs] 200 150 100 70 Market Size and Growth ADAS* market is growing Sensing camera market size: In-Car Camera WW market (volume) 84 2.

7 4. In-Car Camera Lens Unit [M pcs] Market Size and Growth ADAS* market is growing Sensing camera market size: In-Car Camera WW market (volume) times(fy17-> FY23) TSR2016 Sensing Policy and Challenges Top position in sensing market expected to surge from FY2020 (1)Develop high perf, high reliability sensing lens Advanced optical design capability Highly reliable material process technology (2)Set up 4 regional factories and bolster competitiveness Local production in 4 major markets Accelerate production automation & build supply chain WW Production Sites 50 View To meet Global Tier 1s' demand for local contents Triple the current production capacity in FY FY16 FY17 FY18 FY19 FY20 FY23 EU factory Market Share Target WW Share >20%, target Top share China(MDCN) North America factory Malaysia(MTM) Long term plan & Mid term plan (MG20) Objectives *ADAS: Advanced Driver-Assistance Systems Sales Growth > 3 times the FY17 sales in FY2023 OP Margin FY20 > 15% All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 7

5. LED Headlamp lenses LED Headlamp market growth :CAGR +15% [M units] 80 60 40 20 0 32 Market Size and Growth WW LED Headlamp Lens Market Source : Maxell 37 43 49 57 65 72 FY17 FY18 FY19 FY20 FY21

8 5. LED Headlamp lenses LED Headlamp market growth :CAGR +15% [M units] Market Size and Growth WW LED Headlamp Lens Market Source : Maxell FY17 FY18 FY19 FY20 FY21 FY22 FY23 Market Share Target WW Share (Volume) Keep >50% Policy and Challenges Add 4 overseas factories and bolster competitiveness to expand business (1)WW 6 factories scheme (by FY20) Add US(FY18),EU(TBD) to JPN, China, Malaysia (2)Strengthen cost competitiveness by High-cycling, multi-cavity and cooling process (3)New (Miyagi) molding shop to meet domestic customer's factory nearby WW Production Sites Locally based factories at customers sites Overseas 4 factories +(Miyagi) new shop EU factory (TBD) (Miyagi) China(MDCN) (Gifu) North America factory Malaysia(MTM) (FY18) Long term plan & Mid term plan (MG20) Objectives Sales Growth > 2.3 times the FY17 sales in FY2023 OP Margin FY20 > 15% All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 8

10 Notes about statements about the future Parts of this document contain predictions about the future that are based on our current expectations and beliefs. These statements are provided as background material for investors. We cannot ensure or guarantee that any such statement will prove to be correct. Please keep in mind that actual outcomes might differ from anticipated results. All Rights Reserved, Copyright 2018 Maxell Holdings, Ltd. 10

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