CORPORATE VALUE INITIATIVES

LINTEC’s

Value Creation
Working at the leading edges of its fields, LINTEC has combined original technologies fostered over many years to develop numerous groundbreaking products. Under the Business
Administration Div., six operations bring these products to market and help address issues
in a variety of industries.
Note: Based on the similarities of their products, technologies, and markets, the Group’s six operations areclassified into three segments—Printing and Industrial Materials Products, Electronic and Optical
Products, and Paper and Converted Products.
Printing & Variable Information Products Operations

Printing and Industrial Materials Products

Industrial & Material Operations
Advanced Materials Operations

Electronic and Optical Products

Optical Products Operations
Fine & Specialty Paper Products Operations

Paper and Converted Products

20

LINTEC ANNUAL REPORT 2018

Converted Products Operations

Share of Net Sales by Segment
Paper andConverted Products

Printing andIndustrial Materials
Products¥38.5 billion
Net Sales¥249.0 billion

Paper andConverted Products

Printing andIndustrial Materials
Products¥5.0 billion¥121.7 billion 25.0 %48.9 %

Fiscal year ended
March 31, 2018

Operating Income¥20.1 billion¥3.0 billion

OVERVIEW

15.4 %

Share of Operating Income by Segment

15.2 %

Fiscal year ended
March 31, 2018

Electronic and
Optical ProductsElectronic and
Optical Products

35.7 %

59.8 %¥88.9 billion¥12.0 billion
Note: Operating income composition data is based on figures before the elimination of intra-segment transactions.

Regarding consolidated business results in the fiscal year
ended March 31, 2018, which was the first fiscal year of our

STRATEGY

A Message from the Executive
General Manager, Business
Administration Div.

Makoto Hattori
Director, Managing
Executive Officer,
Executive General
Manager, Business
Administration Div.

LIP-2019 medium-term business plan, overall we largely
reached our initial numerical targets. This performance wasthanks to each operations’ efforts to advance measures
steadily in accordance with the plan and rigorously discoverwhat customers really need. In the current fiscal year, theplan’s second year, we will proactively advance measures to
ESG

tackle several tasks that we were unable to finish in the firstfiscal year. At the same time, we will accelerate efforts todevelop and offer new products.
First of all, we view rebuilding overseas subsidiaries thatthe profitability of products—even if they are existing prod-

rationalizing the management of MADICO, INC., and its

ucts—by thoroughly analyzing how to increase profit based

figures are beginning to reflect the benefits of this effort.

on the ways we sell, manufacture, or handle them. Further,

Further, PT. LINTEC INDONESIA has been recovering since awith our sights set on the plan’s final year and beyond, welabor issue lowered its production volume, and we will con-will plan and offer new products and ideas to unearth

tinue improving the company’s profitability. Also, we aredemand.

taking various steps to rapidly create synergy benefits with

Other new initiatives include our launch of the SDGs

MACTAC AMERICAS, LLC, acquired in 2016. These steps

Committee in February this year with the aim of helping

include introducing personnel to the subsidiary.

address social issues through mainstay operations.

Meanwhile, markets in Japan in which we offer adhesive

FINANCIAL INFORMATION

are unprofitable as urgent task. Last year, we began radicallyNaturally, environmental measures are an important focus

products for labels and products related to construction

for us as a manufacturer. In my capacity as the officer inmaterials and automobiles do not have high growth rates.

charge, I also intend to create new businesses that contrib-

Nonetheless, these are still large markets. We will heighten

ute to the realization of non-environmental SDGs.

LINTEC ANNUAL REPORT 201821

CORPORATE VALUE INITIATIVES

At a Glance
Printing and Industrial Materials Products
Printing &Variable
Information
Products
Operations

Accounting for approximately 35% of the sales of
the LINTEC Group, these are its largest
operations. They manufacture and sell theGroup’s mainstay adhesive papers and films forlabels. In particular, these operations have anapproximately 60% share of Japan’s market foradhesive films, which have particularly highadded value. Overseas, we increased the scale ofoperations by expanding our manufacturing andsales network in China and Southeast Asia and by
taking measures that included acquiring U.S.
company MACTAC AMERICAS, LLC in 2016.

Industrial &Material
Operations

These operations manufacture and sell an
extremely wide range of products, from window
films with various functions such as cutting out
heat and ultra-violet light when they are attached
to building and automobile windows through tomotorcycle- and automobile-use adhesive
products for such applications as vehicle body
decoration and protection, industrial-use
adhesive tapes for bonding components in mobile
and other devices, labeling machines forautomated labeling, films for outdoor signs andadvertising, and decorative films for interiors.

Electronic and Optical Products
Advanced
Materials
Operations

In recent years, these operations have grownsignificantly. We are building a unique position in
the electronics industry with products such as
specialized adhesive tapes that are essential insemiconductor chip manufacturing and mounting
processes, and we also make equipment thatleverages these tapes’ special features fully. In
addition, we produce and sell release films thatare crucial in the production of multilayer ceramic
capacitors, which are electronic components.

OpticalProducts
Operations

We deploy our development technologies for
special adhesives and surface coating agents aswell as precision coating technology and use
leading-edge production facilities to provide
adhesive processing for various types of opticallyfunctional films, such as polarizing films andretardation films that are used in LCDs andorganic light-emitting diode (OLED) displays. We
also undertake surface improvement processing
for polarizing films, such as antiglare hard coatprocessing, which protects films from scratches
and reduces reflectivity.

Paper and Converted Products
Fine &
Specialty
Paper
Products
Operations

22

We have the leading share in the Japanesemarket for color papers for envelopes and colored
construction papers. We also manufacture andsell specialty papers including oil and water
resistant papers used in food packaging, dustfree papers for use in places such as clean
rooms, high-grade printing papers with special
textures, and high-grade papers for paper
products used in business cards and postcards.
Currently, these operations are centered onJapan. Going forward, however, we will also
concentrate on sales activities with a view toincreasing sales overseas.

LINTEC ANNUAL REPORT 2018

Converted
Products
Operations

We endow papers and films with special
functions, such as releasability and resistance towater, heat, and abrasion to create release papers
and films that protect the adhesive surfaces of avariety of adhesive products. We also produce
casting papers that are used as patterning papers
for placing designs on synthetic leather andcasting papers used in the manufacture of carbon
fiber composite material sheets from fibers.

(Fiscal year ended / ending March 31)¥ Billion

Net Sales by Operations¥ Billion

140

105

70

100

5.4 6

75

4

50

3.0

2015

2016

2017

2018

2019
(Forecast)

2

25

0

0

Net Sales
Operating Income (right)

92.1

88.9

12.0

16

12.6
12

45

4

15

0

0

2019
(Forecast)

37.2

2015

2016

2017

Net Sales by Operations¥ Billion

¥ Billion¥ Billion

39.1

8

24

18

20

4

12

10

2

6

0

0

0

5.0

2015

2016

2017

Net Sales
Operating Income (right)

2018

5.0

2019
(Forecast)

2018

22.0
16.4

2015

2016

2017

2018

22.1

17.0

FINANCIAL INFORMATION

6

30

36.9

2019
(Forecast)
Advanced Materials Operations
Optical Products Operations

Net Sales / Operating Income by Segment

38.5

55.2

ESG

2018

Net Sales
Operating Income (right)

40

2019
(Forecast)

51.6

25

2017

2018

60

30

2016

2017

¥ Billion

8

2015

2016

Net Sales by Operations¥ Billion

50

0

2015

STRATEGY¥ Billion

75

36.2

Printing & Variable Information Products
Operations
Industrial & Material Operations

Net Sales / Operating Income by Segment
100

89.6

87.1

34.6

35

0

¥ Billion

8

121.7 125.8

OVERVIEWNet Sales / Operating Income by Segment

2019(Forecast)Fine & Specialty Paper Products
Operations
Converted Products Operations

LINTEC ANNUAL REPORT 201823

CORPORATE VALUE INITIATIVES

Main Products
Printing & Variable Information
Products Operations• Adhesive papers and films for labels

Printing andIndustrial Materials
Products

Industrial & Material Operations• Window films• Automobile-use adhesive products• Industrial-use adhesive tapes• Labeling machines• Films for outdoor signs andadvertising• Interior finishing mounting films

Printing & Variable Information Products Operations
Masaaki Yoshitake
Executive Officer
Executive General
Manager, Printing &Variable Information
Products Operations
Business
Administration Div.

Although Japan’s market for adhesive papers and films for labels has matured,
LINTEC claims a large share of it by catering painstakingly to client companies’
exacting quality requirements. In the fiscal year ended March 31, 2018, we
continued proactively unearthing new demand and expanding our market share.
In particular, we grew sales of adhesive films centered on campaign labels andeye-catching labels.
On the other hand, in North American and European markets our brand profileis still not high enough. Further, our client base in Asian markets primarily comprises Japanese companies. Going forward, as well as leveraging our strengths
through the provision of high-value-added products to the industrial field, we must
boost sales in the fields of daily necessities, food, and distribution with a focus onoffering high-end products. As part of such efforts, we are actively increasing thevisibility of the LINTEC brand by displaying at expos. Further, I believe that anotherimportant task under the medium-term business plan is to expedite the realizationof synergy benefits with MACTAC AMERICAS, LLC—which we acquired to establish
a foothold for the strengthening of operations in the North American market.

Industrial & Material Operations
In the fiscal year ended March 31, 2018, we saw a steep rise in domestic sales oflabeling machines used at logistics and delivery centers in particular as theInternet mail-order sales market continues to grow. Further, we will endeavor to
strategically grow orders that are focused on 2020, mainly through our lineups offilms for indoor and outdoor signs and decorative films for interiors and exteriors.
Overseas, I believe strengthening the systems of window film businesses will be amajor theme going forward. In North America, we are rebuilding manufacturingsubsidiary MADICO, INC., and accelerating the marketing of new products. As forSoutheast Asia, we are concentrating efforts on strengthening our network of
distributors centered on products for automobiles while heightening recognition of
the LINTEC brand. Also, we have to increase the utilization rate of the clean coating
facilities of LINTEC (THAILAND) CO., LTD. Motorcycle-use side stickers, automobileuse paint replacement films, protective films for aluminum wheels, and otherautomobile-use adhesive products are selling well in Southeast Asia and India, andwe will continue growing sales of these product lineups to automobile manufacturers.
24

LINTEC ANNUAL REPORT 2018

Shuji Morikawa
Director,
Executive Officer
Executive General
Manager, Industrial &Material Operations,
Business
Administration Div.

SWOT Analysis

Weaknesses•Long record of supplying numerous customers and large market
share centered on high-value-added products in domestic market•Ability to provide comprehensive solutions that combine adhesive
products for labels and labeling machines•Sales networks, delivery capabilities, brand power, and pricecompetitiveness in overseas markets•Profitability of manufacturing subsidiaries in the United Statesand Indonesia

Opportunities

Threats•E xpected new demand for products with approach of 2020
•Southeast Asia’s favorable market and stable growth of U.S. market•Deceleration of growth in domestic market overall and possibility ofmajor overseas manufacturers’ full-scale forays into domestic market•Emergence of local manufacturers in Southeast Asia’s market andother markets and intensification of competition

OVERVIEW

Strengths

STRATEGY

TOPICSThe Significance of Acquiring North American Adhesive Products for Labels
Manufacturer MACTAC AMERICAS, LLC

MACTAC AMERICAS, LLC

ESG

Acquired in 2016, MACTAC AMERICAS, LLC, boasts the third largest share of the North American
market and sales of more than ¥35.0 billion. Acquiring the company was a very large step forward
for the LINTEC Group. As well as hot-melt adhesive formulation technology that realizes
outstanding environmental and cost performance, the company has sales channels covering
North America’s vast market.
We will use this acquisition to rapidly create synergy benefits by leveraging these sales
channels to increase sales of our high-value-added products in the North American market andby actively rolling out the products of MACTAC AMERICAS, LLC, in Southeast Asia and othermarkets outside North America. In May, at Labelexpo Southeast Asia 2018 in Bangkok, Thailand,
we began a full-fledged rollout of the company’s products in the Southeast Asian market under
the LMGP (Lintec Mactac Global Products) brand. This product lineup has already established a
track record in the region for such application areas as food.

LMGP brand adhesive films

MADICO’s Business Results¥ Billion

8
6

5.5

5.4

2

0.1

0
-2

(0.8)

2014 2015 2016 2017 2018
(Forecast)(Fiscal year ended / ending December 31)
Net Sales
Operating Income (Loss)

LINTEC acquired the U.S. company MADICO, INC., in 1987. At thetime, its head factory was in the Massachusetts. In response to a
rapid increase in sales of PV backsheets, which was a new business area for MADICO, INC., the company acquired a window film
manufacturer in Florida in September 2010. This allowed theMassachusetts production base to concentrate on the manufacture of PV backsheets. MADICO, INC., established a product
MADICO, INC.
supply system based on these two plants. However, in the year
following this acquisition, prices fell and orders decreased for PV backsheets due to the rapid commoditization of solar panels. As a result, MADICO, INC., has been recording operating losses since 2012.
At present, we are radically rationalizing management. In addition to withdrawing fully from thePV backsheets business last year, we have acquired new land and buildings in Florida. Plans callfor establishing a new production base at the site and consolidating manufacturing facilities there.
Moreover, MADICO, INC., is strengthening collaboration with functional films manufacturer VDI,
LLC, acquired in 2016, to step up the development and marketing of new products. In the current
fiscal year, MADICO, INC., aims to move into the black for the first time in seven fiscal years.
LINTEC ANNUAL REPORT 2018

FINANCIAL INFORMATION

4The Rebuilding of Window Film Manufacturer MADICO, INC., an Urgent Task

25

CORPORATE VALUE INITIATIVES

Main Products
Advanced Materials Operations• Semiconductor-related adhesive
tapes and equipment• Multilayer ceramic capacitor-related
tapesElectronic and
Optical Products

Optical Products Operations• Polarizing films and retardation films(adhesive processing)• Polarizing films (surface improvement
processing)

Advanced Materials Operations
Takeshi Kaiya
Executive Officer
Executive General
Manager, Advanced
Materials Operations,
Business
Administration Div.

The fiscal year ended March 31, 2018, saw brisk demand for tapes and devices
for the manufacturing processes of semiconductors and electronic components.
This is attributable in part to significant growth in the markets for semiconductors and electronic components. However, we take pride in the fact that ourcurrent performance is also the result of uncompromising efforts to identify theneeds of customers and markets based on our “always be No. 1” policy as wellas the timely development and marketing of products.
With respect to semiconductor-related adhesive tapes and multilayer
ceramic capacitor-related tapes, given that we have been operating at full
capacity in recent years due to strong demand for our products, centered on
those for high-end products, we are reforming our production system andramping up production capacity. The challenge going forward will be tostrengthen supply chain management even further with the aim of procuring
stable supplies of base films—the raw material of our products—and ensuring
reliable quality. To these ends, we are actively disclosing information to suppliers and seeking their cooperation.

Optical Products Operations
In the fiscal year under review, although adhesive processing operations for films
used in LCDs grew sales volume, selling prices and net sales decreased, partly
reflecting the market entry of LCD panel manufacturers from China. We mustbuild a structure that generates earnings consistently by reducing variable costs
and fixed costs and by strengthening global operations among our manufacturing bases in Japan, South Korea, Taiwan, and the polarizing film manufacturer
with which they collaborate.
Regarding products for organic light-emitting diode (OLED) displays, due totheir structure these displays use fewer layers of polarizing film than LCDs use.
Although the market is still small, orders have been increasing steadily. In preparation for the further spread and penetration of OLED displays, we will deepen
partnerships with the aforementioned polarizing film manufacturer and explore
the development of operations for new optically functional films.

26

LINTEC ANNUAL REPORT 2018

Shinji Ito
Executive General
Manager, Optical
Products Operations,
Business
Administration Div.

SWOT Analysis

Weaknesses• A bility to provide comprehensive solutions that combine tapes and equipment used in semiconductor manufacturing and mounting processes•Long record of supplying numerous semiconductor and electronic
component manufacturers worldwide and unique technologicalcapabilities•Insufficient resources to cater to expanding electronics-related
market and lengthening of delivery lead times for certain equipment• Sluggish growth in new businesses following on from businesses
related to semiconductors, electronic components, and LCDs

Opportunities

Threats•Expansion of electronics-related market due to such factors as spreadof IoT and increasing use of electronics in automobiles•Technological innovation in relation to semiconductor packages,
electronic components, and optical displays•Lower product prices due to commoditization of electronic devices•Rapid deterioration of conditions in electronics-related market andexchange rate fluctuations

OVERVIEW

Strengths

Trend Forecast for
the Semiconductor Market$ Billion

500

463

484

412

400
300
200
100

2015 2016 2017 2018 2019

(Forecast) (Forecast)(Calendar year)

Source: World Semiconductor Trade
Statistics (WSTS)

Semiconductor-Related Tapes Continuing to Sell Briskly in a Booming Market
The future of the semiconductor market is very bright. It has
broken a four-year “silicon cycle” of booms and busts to entera “super cycle” thanks to the spread of the Internet of Things(IoT), which connects an array of things to the Internet; theintroduction of next-generation, high-speed “5G” communications; and the increasing incorporation of electronic components in automobiles. The sales growth of Advanced
Materials Operations in recent years was not only the result of the tailwind that the semiconductor market provided. A major driver of our performance was the continuous development andoffering of wafer surface protective tapes that matched customers’ needs, enabling us to stakeout a larger market share.
The designs of semiconductor chips and packages are evolving at a high pace. LINTEC’s
mission is to offer new tape processes and thereby keep up with these advances. Throughongoing patent strategies and other initiatives, LINTEC will continue to expand its presence in thesemiconductor-related tape market.

ESG

0

STRATEGY

TOPICS

Enhancing Productivity and Commercializing New Materials

FINANCIAL INFORMATION

Polarizing films

In April 2018, we reorganized the Optical Products Operations into two departments: the Global
Management Dept. and the Functional Materials Dept. The role of the Global Management Dept.
is to further heighten productivity and quality through global operations centered on manufacturing bases in Japan, South Korea, and Taiwan. Meanwhile, the Functional Materials Dept. will develop
and market not only polarizing films but also functional materials that are compatible with new display
structures.
Going forward, as well as enhancing productivity through the strengthening of partnerships
with polarizing film manufacturers, we have to focus efforts on expanding businesses for
optical-related components other than polarizing films. These include light diffusion films thatheighten the visibility of displays and high-barrier films that provide an alternative to glass. For
such films, we have already established materials with sufficient properties. Therefore, we willproceed steadily toward commercialization through such steps as the establishment of mass
production processes.

Reflective LCD using LINTEC’s light
diffusion film (right)

LINTEC ANNUAL REPORT 201827

CORPORATE VALUE INITIATIVES

Main Products

Paper andConverted Products

Fine & Specialty Paper Products
Operations• Color papers for envelopes• Colored construction papers• Special function papers• High-grade printing papers• High-grade papers for paper products
Converted Products Operations• Release papers for adhesive products• Release films for optical-related products• Casting papers for synthetic leather• Casting papers for carbon fiber composite materials

Fine & Specialty Paper Products Operations
Toshimi Sugaya
Executive Officer
Executive General
Manager, Fine &Specialty Paper
Products Operations,
Business
Administration Div.

Converted Products Operations

Fine & Specialty Paper Products Operations are facing extremely tough business conditions due to raw material price hikes and the recent decline in use of
paper, which is shrinking the market. In response, in the fiscal year underreview we grew sales of special function papers, such as oil and water resistantpapers, dust-free papers, and base papers for total heat exchangers. This growthcompensated for lackluster sales of mainstay color papers for envelopes, which
account for approximately half of net sales.
At present, more than 90% of these operations’ sales are in the domestic
market. While we further grow domestic market share, in expanding operations
our main challenge will be to develop markets overseas. Confident that demandfor paper for food packaging will heighten as living standards rise in Southeast
Asia, we will focus on increasing sales, including dust-free papers. Also, we willcater to the world’s growing environmental awareness by increasing the use offorest-certified pulp, which contributes to appropriate forestry management.
In addition, we will develop blended papers that use non-wood raw materials
that used to be discarded as well as develop specialty papers that align withcurrent initiatives toward eliminating the use of plastic.

In the fiscal year under review, we posted robust sales of release papers for electronicmaterials for smartphones, release films for optical-related products, and casting papers
for synthetic leather. Although unit shipments of smartphones themselves are softening,
the number of electronic components that they incorporate is rising as smartphone
performances advance. Consequently, we expect continuing growth in demand forrelease papers and release films for high-end products. With respect to casting papers
for synthetic leather, targeting particularly strong demand for automobile applications,
we are working to grow sales worldwide by bolstering collaboration with distributors.
As for casting papers for carbon fiber composite materials, we have been facing difficult
business conditions because demand for fuel-efficient aircraft has been decreasing due tolow crude oil prices. Going forward, however, with production of such aircraft likely to rise, weare looking forward to a pickup in demand for the carbon fiber composite materials that areused in aircraft bodies. While continually reducing costs, in line with our basic strategy ofdifferentiating quality and services to avoid the pitfall of pure price competition, we will continue to ensure sustained earnings by catering effectively to the needs of business clients.
28

LINTEC ANNUAL REPORT 2018

Yutaka Iwasaki
Executive Officer
Executive General
Manager, Converted
Products Operations,
Business
Administration Div.

SWOT Analysis

Weaknesses•Large shares of domestic markets for color papers for envelopes
and special function papers as well as capabilities for manufactureof variety of products in small lots•Outstanding release agent processing technologies and coating
technologies•Sales networks, delivery capabilities, brand power, and pricecompetitiveness in overseas markets for specialty papers•Sluggish growth in new products following on from color papers forenvelopes, special function papers, and casting papers

Opportunities

Threats•Increasing demand for high-value-added products in China andSoutheast Asia
•Growing environmental awareness in Japan and overseas•Reduced demand for paper due to decline in use of paper•Soaring prices for key raw materials, including imported pulp

OVERVIEW

Strengths

STRATEGY

TOPICS
The Potential of Special Function Papers for Further Growth

Oil and water resistant papers

Casting Papers for Synthetic Leather—A Pillar of Converted
Products Operations

Use of Casting Papers for Synthetic
Leather Production
Casting papers coated with resins areaffixed to a base cloth, and then dried
and removed to imprint synthetic
leather with patterns.
Adhesive

Base cloth

FINANCIAL INFORMATION

In addition to existing applications for bags and footwear, the use ofsynthetic leather for automobile interiors is growing. At LINTEC, we are
selecting designs best suited to automobiles and concentrating onsales promotion. At the same time, our manufacturing subsidiary in
Suzhou, China, is establishing a new embossing method with a view tocreating a wider variety of designs. Meanwhile, in China—the world’s
largest market for casting papers for synthetic leather—the competitive environment is changing as the number of synthetic leather manufacturers decreases while the number of casting paper manufacturers
who compete with LINTEC increases. By stepping up collaboration with
distributors, we will firmly secure and expand our market share.

ESG

Dust-free papers

LINTEC produces oil and water resistant papers by impregnating wood pulp with a special
resin. This creates papers that curb seepages of oil or water while realizing high water-vapor
permeability. Fast-food chains and convenience stores are increasingly using these products as
wrapping paper for hot snacks. Further, we use a special resin that increases adhesion among
pulp fibers to manufacture dust-free papers. Even when ripped, these special function papers
produce very little dust. As the electronics industry grows, demand for dust-free papers isincreasing for such applications as work instructions and process control sheets used at sitesthat manufacture semiconductors and precision machines.
As well as the aforementioned products, which are the mainstays of our special function papers
area, sales of base paper for total heat exchangers have been growing recently. China and othercountries are seeing the increased introduction to homes and office buildings of total heat exchangers, which simultaneously ensure the cleanness of indoor air and save energy. Given that theiroutstanding moisture absorbency and flame retardancy have earned LINTEC’s products a strong
reputation for use as filters in these exchangers, we will continue proactively offering solutions to
manufacturers of air conditioners. We believe that further development of markets in such special
function papers areas will become a major driver of Fine & Specialty Paper Products Operations.

Synthetic leather

CuringPolyurethane resin
Casting paper

Casting paper

LINTEC ANNUAL REPORT 2018

29

CORPORATE VALUE INITIATIVES

Research and Development
As a technology-centered company, we realize that strengthening R&D capabilities is one of our mostimportant management strategies for achieving sustainable growth. Two approaches help us to create
both products that resolve our customers’ diverse technological issues and products that are unprecedented, innovative, and lead the market: the developing of functional materials and related processing
technologies that leverage our proprietary technological capabilities and a market-dialogue style ofresearch that emphasizes customer needs. Going forward, we will further strengthen our R&D structure
to accelerate the speed of product development and create new technologies.

Adhesive applications
Through the development ofadhesives and substrates and the
combination of related
technologies, we are expanding
the range of ﬁelds in which thebasic functions of adhesive
products, primarily adhesion
and release, are utilized.

Surface improvement
Through the chemical andphysical processing of thesurfaces of paper and ﬁlm, weare enhancing theircharacteristics and adding
new functionality.

Four CoreTechnologies

System development
Through the systemization ofmachinery and equipment andbuilding high-level systems thatdraw on the distinctive characteristics of materials, we areproviding advanced solutions.

Specialty papers and releasematerials production
We use original papermaking
technologies and coating,
impregnation, and laminating
technologies to develop special
function papers and high-valueadded materials that transcend
traditional concepts of paper.

Research and Development Structure

Approximately 200 research personnel are engaged in

The research center of the Research & Development

day-to-day research on these themes. In addition, theDiv. is the core base for the Group’s R&D activities.

Nano-Science & Technology Center in Texas, theThe center has not only state-of-the-art research

United States, is engaged in research in new fields

facilities but also a clean room with the sameoutside our current technology domain.

semiconductor-related equipment that is found in
the production environment of our customers. The
completion of the Advanced Technology Building near
existing facilities in Saitama in 2015, with its largescale pilot coaters that closely resemble plant mass
production facilities, provided a structure for smooth
flow from R&D to mass production. The center mainlycomprises the Product Research Dept., whichdevelops products directly connected to our current
business, and the New Materials Research Dept.,
which conducts R&D with a focus on the future.

30

LINTEC ANNUAL REPORT 2018

Large-scale pilot coater2017, we brought the R&D Strategy Dept., which advances the

We are pursuing R&D to ensure that our focus themes make acreation of new businesses and other initiatives, under the wing

real contribution to strengthening the competitiveness of existingof the Research Center. We have established an R&D scheme,

businesses and creating new businesses and products. LINTEC

called the “Stage Gate System,” which facilitates coordination

is working to improve development efficiency based on two key-

among the R&D Strategy Dept., the New Materials Researchwords: “front-loading design,” which entails scrutinizing cus-

Dept., the Product Research Dept., and business operations.

tomer needs and development processes from the initial R&D

Under this scheme, we are taking steps to speed up the creation

stages, and “one-stop development,” in which new materials andof new products.

OVERVIEW

R&D Policy

mass production processes are developed in parallel. In April

The Stage Gate System

STRATEGY

Under this system, R&D themes are divided in the five stages of conception, examination, incubation, R&D, and product development, and gates are set up as checkpoints when moving to each of the next stages. Screening is performed at each checkpoint to determine whether to advance the theme or cancel it.
The aim is to steadily and quickly give shape to each theme, preventing setbacks in development through full verification at
key points. Through close coordination between the Research Center and respective business operations, we are creating newvalue in response to customer needs and evolving markets.
Image of Stage Gate System
Conception

Examination

Incubation

R&D

Product Development
Business Operations

Corporate
Research

New Materials Research Dept., Product Research Dept.
R&D Strategy Dept.
Checkpoint

Business
Operations
Medium- andLong-Term
ThemesCheckpoint

Checkpoint

Checkpoint

R&D Strategy Dept.
New Materials Research Dept., Product Research Dept.
Business Operations

ESG

Intellectual Property Activities

to increase profitability based on intellectual property that has

LINTEC aims to increase corporate value by developing originalhigh business value.

products that fully satisfy customer needs. We therefore position
intellectual property, including patents, trademarks, and design
rights acquired through these development activities asimportant management resources. While placing the utmost
emphasis on respecting the rights of other companies, the

2,500
2,000

coordinates with respective operations and R&D departments inpromoting Companywide and strategic intellectual property
activities. These activities aim to increase and improve
intellectual property rights, which are the lifeblood of LINTEC
given that it is a technology-centered company.

1,500

1,272
1,180

1,526
1,297

1,699
1,436

1,848
1,599

2,041
1,797

FINANCIAL INFORMATIONIntellectual Property Dept. of the Research & Development Div.

Number of Patents

1,000
500

By such means as building a patent portfolio for our foundation and growth business domains and securing intellectual
property in step with the globalization of our business, we aim

0

2014

Japan
Overseas

2015

2016

2017
2018
(Fiscal year ended March 31)

LINTEC ANNUAL REPORT 201831