Our Business
The LINTEC Group’s operations are divided into six product categories, which have beenarranged into three operational segments: Printing and Industrial Materials Products,
Electronic and Optical Products, and Paper and Converted Products.

Printing and Industrial Materials Products

net sales

operating income

This segment consists of Printing and variable information products operations and Industrialand material operations.
In our Printing and variable information products operations, we conduct the production
and sales of adhesive papers and films for seals and labels, which are the LINTEC Group’s
mainstay products. Our adhesive films perform particularly well, boasting a share of over50% of the domestic market. We are also targeting the expansion of our share in such overseas markets as China and Southeast Asia following the establishment of production and37.2%

sales bases in these regions.
In our Industrial and material operations, we deal in a wide variety of products, including
sheet materials for photovoltaic (PV) modules, specialty adhesive products for use in informa-

44.8%

tion devices and automobiles, label system-related equipment, materials for outdoor signs
and interior finishing, and even adhesive films for glass.

Electronic and Optical ProductsThis segment consists of Advanced materials operations and Optical products operations.
In our Advanced materials operations, we develop and provide such products as specialized
adhesive tapes and related equipment essential in semiconductor manufacturing and mounting
processes as well as coated films for MLCC production and various materials for touch panels.
In our Optical products operations, we conduct adhesive processing for the bonding of

28.2%

polarizing films and retardation films used to make LCDs; surface improvement processing forpolarizing films, such as antiglare hard coat processing, which reduces reflectivity and protects
films from scratches; and the manufacturing of protection films for polarizing films.

Paper and Converted ProductsThis segment consists of Fine and specialty paper products operations and Converted

36.8%

products operations.
In our Fine and specialty paper products operations, we produce and sell color papers forenvelopes and colored construction papers, products for which LINTEC holds the leading sharein domestic markets; lint-free papers for use in clean-room environments that almost completely prevent the occurrence of dust; oil- and moisture-resistant papers for food packaging;high-grade printing papers with special textures; and high-grade papers for paper products

34.6%

used for business cards and postcards.
In our Converted products operations, we provide release papers and films that protect theadhesive surfaces of a variety of adhesive products. Additionally, we produce casting papers
that are used as patterning papers for placing designs on synthetic leather. We also manufacture casting papers for carbon fiber composite materials, essential for the process of hardening the fine carbon fiber into sheet form. Going forward, we have high expectations for carbon
fiber due to its increased usage, such as in the bodies of aircraft.
4

LINTEC ANNUAL REPORT 2012

18.4%

Printing and Industrial Materials Products

net sales

operating income¥90.1 bn

¥5.2 bn

Printing and Variable Information Products Operations

Net Sales*

In the fiscal year under review, sales in Asia were unchanged¥ Billion

from the previous year due to the drop in demand in the second

60

half of the fiscal year as a result of the impacts of the financial

40

crisis in Europe as well as the severe flooding in Thailand.

20In addition, sales suffered in Japan because of the disruptions
to the production activities of major users following the Great053.0

08

09

10

11 12 FY

East Japan Earthquake. Due to the above, net sales were down
0.6% year on year, to ¥53.0 billion.

main products• Adhesive papers and films for seals and labels• Label printing machines

share of net sales

26.4%
Industrial and Material Operations

Net Sales*

In the fiscal year under review, sales of window films increased¥ Billion

substantially due to higher demand for films for electricity

45

saving and glass shatter-proofing purposes as well as the sales

30

contributions from the U.S. subsidiary that was consolidated

15

during the fourth quarter of the previous fiscal year. However,sales of PV backsheets were down notably because of the inven-

037.1

08

09

10

11 12 FY

tory adjustment trend in the market. Automobile-use adhesive
products, including those for motorcycles, and industrial-use
adhesive tapes also experienced a drop in sales following thedecline in production among manufacturers as a result of theearthquake in Japan and flooding in Thailand. Accordingly, netsales decreased 3.9% year on year, to ¥37.1 billion.

main products• PV backsheets• Automobile-use adhesive products• Industrial-use adhesive tapes• Barcode printers• Labeling machines• Films for outdoor signs and advertising• Interior finishing mounting sheets• Window films

share of net sales

18.4%* Due to a reorganization of business segments,
Healthcare products operations has been
integrated into Printing and variable information products oper­ations from April 1,2011. Also, some products associated withPrinting and variable information products
operations were recorded under Industrial
and material operations over the period fromFY2009 to FY2011.

LINTEC ANNUAL REPORT 20125

Electronic and Optical Products

net sales

operating income¥73.9 bn

¥3.9 bn

Advanced Materials Operations

Net Sales

In the fiscal year under review, sales of semiconductor-related¥ Billion

tapes increased slightly year on year, whereas semiconductor-

45

related equipment saw a large decrease in sales due to limited

30

capital investment among semiconductor manufacturers. Sales

15of coated films for MLCC production were solid following robust
demand for smartphones. Meanwhile, sales of optical device-

031.808

09

1011 12 FY

related products dropped significantly. As a result, net sales weredown 8.1%, to ¥31.8 billion.

main products• Semiconductor-related tapes and equipment• Coated films for MLCC production• Touch panel-related products

share of net sales

15.9%• RFID-related products

Optical Products Operations

Net Sales

Net sales in the fiscal year under review were down 9.6%, to¥ Billion¥42.0 billion, due to low demand for flat-screen TVs both inside60

and outside of Japan, which outweighed the effects of brisk

40

demand for smartphones.

20

main products0• Polarizing films and retardation films for LCDs
(adhesive processing)• Polarizing films for LCDs (surface improvement processing)• Protection films for polarizing films

42.0080910

11 12 FY

share of net sales

20.9%

6

LINTEC ANNUAL REPORT 2012

Paper and Converted Products

net sales

operating income¥36.9 bn

¥4.8 bn

Fine and Specialty Paper Products Operations

Net Sales

In the fiscal year under review, post-earthquake reconstruction¥ Billion

demand drove up sales of construction material papers for

30

wallpaper, but mainstay color papers for envelopes and industrial-

20

use special function papers experienced an overall decrease in10

demand. This led to a 3.4% year-on-year decline in sales, to¥16.9 billion.

016.9080910

11 12 FY

main products• Color papers for envelopes• Colored construction papers• Special function papers• High-grade printing papers

share of net sales• High-grade papers for paper products

8.4%

Converted Products Operations

Net Sales

In the fiscal year under review, net sales were down 9.7%, to¥ Billion¥20.1 billion, due to sluggish demand for mainstay release30

papers for adhesive products and flexible printed circuits as

20

well as casting papers for synthetic leather.

10

main products0• Release papers and films for adhesive products• Casting papers for synthetic leather• Casting papers for carbon fiber composite materials

20.1080910

11 12 FY

share of net sales

10.0%

LINTEC ANNUAL REPORT 20127Financial Highlights

LINTEC Corporation and its consolidated subsidiaries
Years ended March 31

Millions of yen, except per share data

Net sales

Thousands of U.S.
dollars, except
per share data*% change2012

2011

2010

2012

2012 / 2011

¥ 200,905¥ 212,733¥ 189,348$2,444,401(5.6)

Operating income

13,97520,889

11,576

170,033(33.1)

Income before income taxes

13,382

19,565

11,399

162,817(31.6)Net income

8,648

13,622

7,284

105,224(36.5)

Return on equity (ROE)

6.6%

10.9%

6.2%

6.6%

–Net income¥   115.26¥   180.21¥   96.36$1.40(36.0)Net assets

1,766.60

1,715.78

1,596.37

21.49

3.0

40.00

40.00

24.00

0.49

0.0

¥   10,079¥   10,178¥   10,537$   122,634(1.0)

11,684

10,058

7,935

142,168

16.2

Net cash provided by operating activities

18,91023,30722,259230,082(18.9)Net cash used in investing activities(12,262)(9,926)(9,253)(149,198)

23.5

Per share data (yen and dollars)

Cash dividends
Depreciation and amortization
Capital expenditures

Net cash used in financing activities(5,099)(2,820)(3,454)(62,044)

80.8

Cash and cash equivalents

36,03635,18825,387438,451

2.4

Total assets

210,203206,188

195,656

2,557,529

1.9

Net assets

132,847

130,576

121,502

1,616,347

1.7* The U.S. dollar amounts are translated, for convenience only, at the rate of ¥82.19 to U.S.$1, the exchange rate prevailing on March 31, 2012.

Net Sales

Operating Income

Net Income / ROE

Total Assets / Net Assets¥ Billion¥ Billion¥ Billion / %¥ Billion

240

24

15240
210.2

200.9

16160

14.0

10160
8.6
132.8
6.6

800580809

1011 12 FY

008

09

1011 12 FY0800809

Net Income

1011 12 FY
ROE00809

Total Assets

1011 12 FYNet Assets

FORWARD-LOOKING STATEMENTS: All statements contained in this annual report, such as projected operating results, that are not historical facts are forward-looking
statements based on the Company’s estimates and plans. For various reasons, it is possible that the Company’s future results, performance, or achievements will differ
from the contents of these forward-looking statements.
8LINTEC ANNUAL REPORT 2012