MAX Co., Ltd.Financial Results Briefing for FY 2020(April 1, 2019 to March 31, 2020)Progress of Business Plan for FY 2021(April 1, 2020 to March 31, 2021)

May 19, 2020

ParticipantsMitsuteru Kurosawa, PresidentAkio Kitaya, Executive Officer / General Manager, General Affairs Dept.

1. Financial Results for Entire Company and

Individual Segment in FY 2020

2. Progress of Business Plan for FY 2021

Table of Contents

Financial Results for Entire Company

and Individual Segment in FY 2020

7,25310.3

5,0647.2

70,118

27,73139.5

7,15010.2

102.92

2.1

8.8

-0.6

5.0

6.1

ー

70,500

ー

7,90011.2

7,80011.1

5,4007.7

110.41

94.9

102.0

98.8

ー

96.0

ー

1

69,671

29,12741.8

7,58610.9

7,40510.6

5,5107.9

112.67

*Revised plan announced as of October 30, 2019

※

Financial Results for the Entire Company in FY 2020

■ Exchange rates(FY under review)(Previous FY)(Planned)

1 USD1 USD1 USD

=109.13 JPY=110.67 JPY=109.30 JPY

/ 1 EUR/ 1 EUR/ 1 EUR

=121.26 JPY=128.74 JPY=121.00 JPY

Net sales

Gross profit Corresponding ratio

Operating income Corresponding ratio

Ordinary income Corresponding ratio Net income attributable to shareholders of parental companyCorresponding ratio

Net income per share (yen)

Results in previous FY

Compared to previous FY

% increase/decrease

Full-year plan*

Compared to plan

Achievement rate

Results in FY under

review

(unit: millions of yen, %)

3,512

4,726 4,654 5,064

5,510

Net income

8.7 9.6

8.9

10.3 10.6

5.3

7.16.8 7.2

7.9

25,426

26,582 26,454

27,731

29,127

Gross profit

66,510 66,967

68,138

70,118 69,671

Net sales

5,792

6,455 6,076

7,253 7,405

Ordinary income

5,883 6,323 6,139

7,150 7,586

Operating income

38.2

39.7 38.8 39.5

41.8

8.89.4

9.0

10.210.9

2Changes in Financial Results for the Entire Company: FY 2016 to FY 2020

■FY 2016 ■ FY 2017 ■ FY 2018 ■ FY 2019 ■ FY 2020 ―Corresponding ratio

(unit: millions of yen, %)

3

15,830 17,094 17,353 17,859

16,856 17,351 18,067 17,843 17,249 17,635 17,488 17,297

0.43.0 2.8

0.7

6.5

1.54.1

-0.12.3 1.6

-3.2 -3.1

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

0

5,000

10,000

15,000

20,000

25,000

Net sales (entire company) Rate of increase/decrease in net sales compared to the same period of the previous fiscal year (entire company)

%

10

5

0

-5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2018 FY 2019

Q1 Q2 Q3 Q4

FY 2020

Changes in Net Sales for the Entire Company by Quarter

Millions of yen

4

7,150 7,150

703 474782

502 386 1,003

436

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000Increase in selling

priceForeign exchange gain/lossin cost

Quantityincrease

Increase inSG&A

expensesForeign

exchange gain/losson sales

Decrease in cost

¥436 million

Effect of exchange rates(¥229) million

7,586

FY 2019 FY 2020

Factors for Increase/Decrease of Operating Income (FY 2020)

(unit: millions of yen)

■ Non-operating income/expenses and extraordinary income/loss

■ Facilities investment, depreciation, R&D expenses

(unit: millions of yen)FY 2019

155475

(319)

YOY

FY 2019

3,102

2,230

2,929

55.1

Implementation rate

92.1

99.0

(unit: millions of yen, %)

5

102

347

(128)

(116)

(283)

(11)

24

(296)

(129)77

(206)

26553

(526)

FY 2020

(180)

335

(103)

(412)

2,853

FY 2020

2,350

3,076

5,177

FY 2020 annual plan

2,552

3,106

*1 Gain on sale of investment securities: ¥315 million; Refund of customs duties from previous year: ¥217 million*2 Loss on valuation of investment securities: (¥289) million

Other Financial Information

Extraordinary income/loss

Extraordinary income*1

Extraordinary loss*2

Non-operating income/expensesNon-operating income (excluding foreign exchange effect)Non-operating expenses (excluding foreign exchange effect)Foreign exchange gain/loss

Facilities investment

Depreciation

R&D expenses

6

Dom

estic

Number of new housing construction starts: Down 4.0% YOY for the period from January to December 2019(Owner-occupied housing construction starts: an increase of 1.9%, rental housing construction starts: a decrease of 13.7%, built-for-sale construction starts: an increase of 4.9% from previous year)→ Negative effect on the industrial equipment product operations and residential environmental equipment operations)

Construction floor area of non-residential structures: Down 4.9% YOY for the period from October 2018 to September 2019(Offices: a decrease of 9.6%, shops: a decrease of 14.5%, factories: a decrease of 13.6%, warehouses: an increase of 5.4%)→ Negative effect on the industrial equipment product operations (concrete related)

Number of skilled rebar workers (for construction sites) turned to a state of overabundance in the latter half of the fiscal year. → Decreasing trend in the industrial equipment product operations (concrete related)

Ove

rsea

s

In response to the COVID-19 pandemic, orders restricting movement have been issued in virtually every country. Sales and supply chains stagnated in Q4 FY 2020.→ Negative effect on the Office Equipment segment, which is characterized by high sales volume in Asia ex-Japan→ Negative effect on procurement from Asia ex-Japan, including subsidiaries in China

1 USD=109.13 JPY, 1 EUR=121.26 JPY(Previous FY: 1 USD=110.67 JPY, 1 EUR=128.74 JPY; Plan: 1 USD=109.30 JPY, 1 EUR=121.00 JPY)Regarding foreign exchange sensitivity for the consolidated financial results, we have achieved a balance of foreign currency sales/procurement, so there is little effect on operating income.

Global economy: Employment was growing in the US economy, driving continuing economic expansion, including growth in personal consumption. With the recent COVID-19 outbreak, this growth was thrown into reverse.The European economy saw a weak recovery amid uncertainty over conditions following Brexit.

Recognition of the Business Environment Surrounding the Group (FY 2020)

2,746–224–8.2

21,5154,79722.3

45,409 5,262

11.6

7

–0.1－

(+3.1P)

–4.8–4.1

(+0.2P)

+1.4+12.3

(+1.1P)

–2,248 ―–2,223

94.7―

96.595.9

100.297.5

―

22,3005,00022.4

45,3005,400

11.9

2,900–180–6.2

–2,320

69,6717,58610.9

–0.6+6.1

(+0.7P)

70,1187,15010.2

98.896.0

70,5007,900

11.2

2,748–310–11.3

44,7634,68410.5

22,6064,99922.1

Segment Financial Results (FY 2020)

Office Equipment segmentNet salesSegment profitSegment profit rate

Industrial Equipment segment Net salesSegment profitSegment profit rate

HCR Equipment segmentNet salesSegment profitSegment profit rate

Adjustment amount

Total for entire companyNet salesOperating incomeOperating margin

Rep

orte

d Se

gmen

ts

Compared to plan

(unit: millions of yen, %)

Achievement rate

% increase/decrease

Results in FY under review

Full-year plan

Results in previous FY

Compared to previous FY

9,512 10,585 11,056 11,158 10,578 11,135 11,706 11,343 10,984 11,531 11,410 11,482

5,455 5,717 5,510 5,882 5,531 5,556 5,668 5,849 5,570 5,400 5,363 5,180

861 790 785 819 746 659 692 650 693 704 714 634

6.4 7.2 8.4 9.2 9.9 10.4 11.8 9.6 11.9 13.1 12.8 8.5

23.2 23.5 21.3 22.0 22.1 22.0 22.2 22.1 23.7 21.8 21.7 21.9

3.5 0.6 -0.3 1.3

-7.4 -14.8

-9.5 -14.0

-10.3 -8.6 -3.0

-11.1

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

0

5,000

10,000

15,000

20,000

Net sales by Industrial Equipment segment Net sales by Office Equipment segment Net sales by HCR Equipment segment Segment profit rate for Industrial Equipment segment Segment profit rate for Office Equipment segment Segment profit rate for HCR Equipment segment

8

%

302010 10

-10-20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2018 FY 2019 FY 2020

Changes in Segment Net Sales by Quarter

Millions of yen

(unit: millions of yen, %)

9

Net sales: ¥45,409 million / Segment profit: ¥5,262 million(up 1.4% YOY / up 12.3% YOY)

Domestic industrial equipment product operations・Net sales: ¥20,127 million (down 0.6% YOY)Advancing adoption in new markets for the TWINTIER rebar tying tools continued, thus resulting in increased sales for consumable products and increased sales of tools for concrete structures. However, the sales of tools for wooden structures decreased. Overall, this resulted in a decrease of revenue.

Overseas industrial equipment product operations・Net sales: ¥14,380 million (up 7.7% YOY)As the result of the Group expanding its presence in the existing construction market and the civil engineering market, introduction of the TWINTIER rebar tying tools proceeded smoothly for both machinery and consumables. Overall, this resulted in an increase of revenue.

Residential environmental equipment operations・Net sales: ¥10,901 million (down 2.4% YOY)Although there was an increase in sales of DRYFAN bathroom heaters, ventilators and dehumidifiers in the housing stock market, there was a decrease in sales for ventilation systems. Overall, this resulted in a decrease of revenue.

19,803 20,250 20,127

11,351 13,347 14,380

11,158 11,164 10,901

FY 2018 FY 2019 FY 2020

7.9 10.5 11.6

42,31344,763 45,409

Industrial Equipment Segment (Financial Results for FY 2020)

■ Net sales in the domestic industrial equipment product operations

■ Net sales in the overseas industrial equipment product operations

■ Net sales in the residential environmental equipment operations

ー Segment profit rate for Industrial Equipment segment

10

8,254 8,300 8,179

5,030 5,137 4,521

9,281 9,168 8,813

FY 2018 FY 2019 FY 2020

22,566 22,606 21,515

(unit: millions of yen, %)

22.5 22.1 22.3

Net sales: ¥21,515 million / Segment profit: ¥4,797 million (down 4.8% YOY / down 4.1% YOY)

Domestic office operations・Net sales: ¥8,179 million (down 1.5% YOY)Although sales increased for BEPOP label-making machines, which are being introduced to manufacturing plants in order to make safety-related signs, and for label printers for food labeling in conjunction with revision of food labeling regulations, sales decreased for stationery-related products and LETATWIN tube markers. Overall, this resulted in a decrease of revenue.

Overseas office operations・Net sales: ¥4,521 million (down 12.0% YOY)Sales of BEPOP label-making machines in the European market increased thanks to sales expansion by the Lighthouse (UK) Ltd. However, sales of stationery-related products decreased in the Asian market. This resulted in overall decreased revenue.

Auto-stapler operations・Net sales: ¥8,813 million (down 3.9% YOY)Sales decreased due to a fall in production at copy machine manufacturers caused by the spread of COVID-19. Furthermore, revenue decreased due to appreciation of the yen.

Office Equipment Segment (Financial Results for FY 2020)

■ Net sales in the domestic office operations

■ Net sales in the overseas office operations

■ Net sales in the auto-stapler operations

ー Segment profit rate for Office Equipment segment

11

(unit: millions of yen, %)

Net sales: ¥2,746 million / Segment profit: (¥224) million(down 0.1% YOY / －% YOY)

HCR Equipment segment

Although sales of high-unit-price wheelchairs increased, product launches struggled and operation at production plants declined under the impact of COVID-19. Net sales were little changed from the previous fiscal year.

1.3

-11.3 -8.2

3,257 2,748 2,746

FY 2018 FY 2019 FY 2020

HCR Equipment Segment (Financial Results for FY 2020)

■ Net sales by HCR Equipment segment

ー Segment profit rate for HCR Equipment segment

1,482 1,455 1,443 1,4801,953 1,805 1,975

1,4032,041 1,961 1,849 2,154

1,573 1,743 1,740 1,818

2,003 1,972 1,768

1,793

2,044 1,909 1,692

2,129

2,056 2,314 2,090 2,058

2,028 2,167 2,075

2,128

2,147 1,968

2,039

1,591

0.8

11.7 10.7 8.317.1

7.8 10.3-0.6 4.1

-1.8 -4.1

10.3

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Net sales in North America Net sales in Europe Net sales in Asia Total overseas net sales (rate of change YOY)

*Includes overseas net sales for auto-stapler operations.

%

6,2325,838 5,579

5,1115,512 5,273 5,356

12

35.5

5,984

34.3

FY 2018 FY 2019

5,944

32.9

32.2

5,818

36.1 33.1 32.032.3 34.032.2 30.4 30.0

33.831.2

29.8

FY 2020

5,3245,875

Changes in Overseas Net Sales by Quarter

Ratio of overseas net sales

(%)

Unit: millions of yen

2010

0-10

5,150

6,487 7,377

5,287 5,949 6,113

917 912 890

711

649

628

1,586 1,587 1,661

7,514 7,391 6,754

87 95 101

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020 FY 2018 FY 2019 FY 2020

Industrial Equipment segment Office Equipment segment HCR Equipment segment

13

8,3988,518

7,5366,8747,136

5,860

8,005 7,7747,745

Changes in Segment Net Sales by Overseas Region

Unit: millions of yen

Asia (excluding Japan)EuropeNorth America

Progress of Business Plan for FY 2021

Impact of the COVID-19 Pandemic 14

• “Stay Home” orders in Western countries are stifling sales activities. ⇒ Overseas industrial equipment product operations are negatively affected. • Sales activities in Asia ex-Japan have stagnated amid “Stay Home” orders and movement

restricting orders by governments. ⇒ Negative effect on overseas office operations • Auto-stapler and residential environmental equipment operations face reduced production at

client manufacturers.

Impact on the Production Segment• The Malaysia plant suspended operations on March 18 but resumed from the week of May 11.• The Group’s three plants in China resumed operations in mid-February. Plants in Japan and

Thailand operated as normal. • Operations are being adjusted according to sales levels. For example, the number of days of

operation has decreased at plants in Japan.

Impact on the Sales Segment• In the Japanese economy, businesses are cutting costs and consumer demand is slackening. • Businesses are cancelling or postponing events and exhibitions. Sales activities have slowed

down. ⇒ Negative effect on all segments

Forecast of Consolidated Operating Results for FY 2021

The Group has not yet prepared a forecast, as it is

impossible to calculate the impact of the COVID-19

pandemic at this stage.

When it becomes possible to disclose a forecast of

business results, the Group will publish it promptly.

15

Key Challenges in the Industrial Equipment Segment for FY 2021

• Spread and expand sales of TWINTIER rebar tying tools in the on-site construction and civil engineering markets of Western countries

• Promoting high-pressure tools in the North American construction market and European wooden housing construction market

• Opening overseas agricultural markets to expand sales and operations for the TAPENER horticultural binder

• Expanding market penetration of TWINTIER rebar tying tools• Acquiring new net increases in sales by advancing into markets peripheral to construction, such as

building of interior works, formworks and sheet metal works

Domestic industrial equipment product operations

Overseas industrial equipment product operations

Residential environmental equipment operations• Expanding stock business by promoting replacement sales of DRYFAN bathroom heaters,

ventilators and dehumidifiers

16

The Group is advancing into new markets, focused on rebar tying tools, aiming for further business growth.

• Strengthening sales of BEPOP label-making machines in Western markets with focus on Lighthouse (UK) Ltd.• In stationery-related products, expansion of sales volume for staplers and staples in Asia ex-Japan

• Maintenance of profitability and enhancement of penetration into new markets through introduction of high-value-added products

• Promotion of safety-related-sign activities in partnership with large company customers, using BEPOP label-making machines

• For label printers for food labeling, expansion in the confectionery market and opening of new markets in food ingredients management applications

• Maintenance and improvement of brand strength in stationery-related products through introduction of new products

Domestic office operations

Overseas office operations

Auto-stapler operations

17

The Group aims to maintain profitability while aiming for further growth, by expanding operations in products such as label-making machines and strengthening

competitiveness in stationery-related products.

Office Equipment Segment Business Plan for FY 2021

HCR Equipment Segment

18 Key Issues in the HCR Equipment Segment for FY 2021

• Expansion of sales of high-value-added products• Expansion of adoption by major rental wholesalers in Japan and wholesalers

operating nationwide• Through facilities investment, saving worker-hours required for production and

building a flexible production system in response to demand fluctuation

The Group is aiming for improving profitability by expanding operations centered on high-value-added products.

Maximizing performance by creating ideal workplaces and educating personnel

Promoting employee health

• Annual actual working hours: 1,900h

• Supporting mental health and improving workplace environments

• Implementation of measures for preventing from lifestyle diseases

Designing personnel systems and educating

personnel

• Designing human resource systems based on life cycles

• Facilitating job rotation• Upgrading skills through

outside training, etc.

Supporting diverse working styles

• Establishing internal IT infrastructure

• Implementation of flextime system

• Examination of telework and satellite offices

19

Preparing an environment where employees work actively and happily, securing capable personnel and improving productivity lead to sustainable growth for the Group.

Creating “an ideal workplace that enhances health and well-being of the employees”

The Company has positioned returning profits to shareholders as one of the highest priority policies and it is the Company’s fundamental policy to stably distribute results supported by corporate performance by pursuing growth of the business and business profits.

FY 2018 FY 2019 FY 2020

Dividends per share (yen) 42 44 46Payout ratio (%) 44.5 42.5 40.8Dividends to net assets ratio (%) 3.0 3.0 3.0ROE (%) 6.7 7.0 7.4Net income per share (yen) 94.46 102.92 112.67Net assets per share (yen) 1,450.61 1,509.80 1,551.34

Change in shareholder return indices

20

Based on consolidated financial results, seek to “maintain a minimum of 40% payout ratio with a target ratio of dividends to net assets of 3.0%.”

For dividends in FY 2020, we plan to increase dividends by ¥2 to ¥46 per share.

Shareholder Return Policy

31.7 30.3 30.7 31.1

31.7

71.8

91.6

38.8

59.9

101.8

37.6

43.9 45.7 40.3

45.3

70.5

161.3

111.1

77.8 72.8

63.3 56.6 54.7

43.8 44.5 42.5 40.8

1.8 2.0 2.1 2.2 2.2 2.2 2.2 2.2 2.1 2.2 2.1 2.2 2.3 2.7 2.9 2.9 2.9 2.9 3.0 3.0 2.9 2.9 2.8 3.0 3.2 3.0 3.0 3.0

0

2

4

6

8

10

12

14

16

18

20

0

50

100

150

FY1993

FY1994

FY1995

FY1996

FY1997

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

%

*Non-consolidated base until FY 2005.

%

40

3.0

21

Forecast TBD

Dividends Policy Payout Ratio and Dividends to Net Assets Ratio

Maintaining a minimum of 30% payout ratio with a target ratio of

dividends to net assets of 2.0%

Maintaining a minimum of 40%

payout ratio with a target ratio of

dividends to net assets of 2.5%

Maintaining a minimum of 40%

payout ratio with a target ratio of

dividends to net assets of 3.0%

― Payout ratio (left axis)

― Dividends to net assets ratio (right axis)

Dividends policy

Based on consolidated financial results, seek to “maintain a minimum of 40% payout ratio with a target ratio of dividends to net assets of 3.0%.”

15 17

19 21 22 22 22 22 22 22 22

24 26

31

35 36 36 36 36 36 36 36 37 39

42 42 44

46

0

10

20

30

40

50

FY1993

FY1994

FY1995

FY1996

FY1997

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

JPY

22

Forecast TBD

Dividends Policy Dividends per Share

… 12

… 13

… 14

… 15

… 16

… 17

… 18

… 19

… 20

The contents listed in this document are based on information currently available to the Company and certain assumptions that are deemed as reasonable. Please be aware that actual business results, etc., may differ greatly depending on various factors.