Maxell (6810) investor relations material

Executive summary

• Q1 FY2027 net sales rose 24.4% to ¥37,665 million; operating profit increased 44.8% to ¥2,872 million and profit attributable to owners rose 50.5% to ¥2,397 million.

• Primary batteries, adhesive tapes, automotive optical components, yen depreciation and customer inventory build-ups supported growth.

Financial highlights

• Sales increased ¥7.4bn YoY: quantity +¥4.5bn, price +¥1.3bn and exchange +¥1.6bn.

• Operating profit rose ¥0.9bn to ¥2,872 million; price, volume, cost reductions and FX gains offset higher material costs and lower prior-year licensing revenue.

• Ordinary profit increased 55.1% to ¥3,127 million; diluted EPS was ¥65.03 versus ¥36.94 a year earlier.

• Comprehensive income was ¥4,261 million, up 211.2%, including ¥1,787 million of other comprehensive income.

Outlook and guidance

• FY2027 guidance unchanged: sales ¥143,000 million (+10.5%), operating profit ¥10,000 million (+26.7%), profit attributable to owners ¥6,700 million (-18.9%) and EPS ¥181.76.

• Full-year segment forecasts: Energy sales/profit ¥53,000m/¥3,100m; Functional Materials ¥34,700m/¥1,900m; Optics & Systems ¥35,700m/¥3,900m; Value Co-Creation Businesses ¥19,600m/¥1,100m.

• Results expected to remain generally steady from Q2, led by Analog Core; primary-battery demand is expected to stay steady, with a new production line scheduled for full-scale operation in H2.

• Adhesive-tape demand is expected to stay firm in Q2 and normalize from H2; semiconductor-process and construction tapes benefit from demand and capacity expansion. Silver pass-through leaves a slight cumulative Q2 drag, with profitability recovering in H2.

• Management aims to deliver guidance through cost pass-through, material reallocation, portfolio reform and growth investment; all-solid-state battery FA module development was completed in June, with sales to accelerate.