Financial Section

Management’s Discussion and Analysis

Revenues and Expenses

manufacturers and receivables collection risks. Demand fell overall

In the ﬁscal year under review, consolidated net sales decreased

for automobile-use adhesive products as although sales were brisk in

5.0% year on year, to ¥190.8 billion. This decline is largely attributable

Japan, due to factors including the government’s eco-car subsidies,to the effect of the low domestic demand for LCD-related products,

exports to Europe and China and production in Asia dropped.

particularly in TVs, a signiﬁcant drop in sales of PV backsheets, andAs a result of the above, net sales in the Printing and Industrial

the worldwide underperformance of adhesive papers and ﬁlms forMaterials Products segment were down 8.1% year on year, to ¥82.8

seals and labels, despite a big increase in sales for semiconductor-

billion, and operating income dropped 54.3%, to ¥2.4 billion.

related tapes and equipment.
Gross proﬁt was down 4.2% year on year, to ¥40.4 billion, asElectronic and Optical Products

decreases in raw material procurement costs, such as for pulp, were

In Advanced materials operations, overall sales of coated ﬁlms for

not enough to make up for lower sales. Selling, general and adminis-

multilayer ceramic capacitor (MLCC) production were down as demand

trative expenses rose 5.9%, to ¥29.8 billion, due to factors such as

for usage in PCs was low, despite positive smartphone demand.

increases in personnel and R&D costs. As a result, operating income

Semiconductor-related tapes also beneﬁted from smartphonedecreased 24.4%, to ¥10.6 billion. Income before income taxes

demand, and sales signiﬁcantly increased in Japan and other Asian

decreased 19.0%, to ¥10.8 billion, and income taxes were ¥3.2 billion.

countries, Europe, and the United States. Semiconductor-related

As a result of these factors, net income decreased 11.2%, to ¥7.7

equipment enjoyed a similarly large increase in sales, centered on

billion. Net income per share declined from ¥115.26 in the previous

Taiwan, following a recovery in orders.

ﬁscal year to ¥102.83, and return on equity (ROE) fell from 6.6% to 5.6%.

In Optical products operations, there were solid sales for LCD-related
products in South Korea and Taiwan due to demand for ﬂat-screen

Performance by Operational Segment

TVs and smartphones, but domestic sales were weak.

Printing and Industrial Materials Products

As a result of the above, net sales in the Electronic and Optical Products

In Printing and variable information products operations, adhesive papers

segment were down 2.1% year on year, to ¥72.4 billion, and operating

and ﬁlms for seals and labels suffered from low consumer spending

income decreased 18.9%, to ¥3.2 billion.

in Japan as well as stagnating exports due to yen appreciation andslowdowns in overseas economies. The European ﬁnancial crisis also had

Paper and Converted Products

a big effect on production in Asia, contributing to our underperformance.

In Fine and specialty paper products operations, sales for mainstay

In Industrial and material operations, the PV backsheet market

color papers for envelopes were down as a result of sluggish demand

expanded, but our market share decreased and sales dropped

and a shift to low-priced items, and high-grade printing papers andsigniﬁcantly as a result of price competition mainly with Chinese

industrial-use specialty papers also underperformed.

Net Sales

Operating Income

Net Income / ROE¥ Billion
250¥ Billion
25¥ Billion
15

%
15

20

12

12

150

15

9

100

10

6

50

5

3

190.8

200

Sales by Operational Segment

7.7

2009

2010

2011

2012 2013 FY

0

2009

2010

2011

2012 2013 FY

43.4%

9

37.9%

10.6

0

18.7%

0

5.6

6
3

2009

2010

2011

2012 2013 FY

0Printing and Industrial Materials
Products

Net Income

Electronic and Optical Products

ROE (right scale)

Paper and Converted Products

LINTEC ANNUAL REPORT 201323

Financial Section

Management’s Discussion and Analysis

In Converted products operations, there were strong overseas sales

Cash Flowsfor release papers for ﬂexible printed circuit (FPC) coverlayers as a result

Cash and cash equivalents as of March 31, 2013, was ¥40.7 billion,of factors including demand for smartphones. However, sales of releasea year-on-year increase of ¥4.7 billion, or 13.1%.

papers for general adhesives products declined slightly and sales of
release ﬁlms for optical-related products dropped signiﬁcantly.
As a result of the above, net sales in the Paper and Converted Products
segment decreased 3.3% to ¥35.7 billion, and operating income rose
2.8% to ¥5.0 billion.

(Cash flows from operating activities)
Cash ﬂows from operating activities increased ¥0.7 billion comparedwith the previous ﬁscal year. The main reasons for the increase wereas follows:· A decrease in income before income taxes of ¥2.5 billion· A decrease in trade notes and accounts receivable of ¥6.1 billion

Financial Condition· A decrease in trade notes and accounts payable of ¥4.7 billion(Assets)· A decrease in cash ﬂows from operating activities–other of ¥2.1 billion

Total assets as of March 31, 2013, were ¥216.0 billion, a year-on-year· A decrease in income taxes paid of ¥3.2 billion

increase of ¥5.8 billion. The main reasons for the increase were as follows:· An increase in cash and deposits of ¥3.7 billion(Cash flows from investing activities)· A decrease in trade notes and accounts receivable of ¥3.0 billion

Cash ﬂows from investing activities decreased ¥1.7 billion compared· An increase in property, plant and equipment of ¥2.6 billion

with the previous ﬁscal year. The main reasons for the decrease were

· An increase in intangible assets of ¥0.7 billion

as follows:· An increase in investment securities of ¥1.0 billion· An increase in proceeds from withdrawal of time deposit of ¥4.8 billion· An increase in purchase of property, plant and equipment of ¥5.1 billion(Liabilities)· An increase in purchase of shares of subsidiaries of ¥0.8 billion

Liabilities as of March 31, 2013, were ¥72.5 billion, a year-on-year decreaseof ¥4.9 billion. The main reasons for the decrease were as follows:(Cash flows from financing activities)· A decrease in trade notes and accounts payable of ¥2.5 billion

Cash ﬂows from ﬁnancing activities increased ¥2.2 billion compared with

· An increase in accrued income taxes of ¥0.7 billion

the previous ﬁscal year. The main reason for the increase was as follows:· A decrease in current liabilities–other of ¥3.5 billion· A decrease in purchase of treasury stock of ¥1.7 billion(Net assets)
Net assets as of March 31, 2013, were ¥143.6 billion, a year-on-yearincrease of ¥10.7 billion. The main reasons for the increase were as follows:· An increase in retained earnings of ¥4.9 billion· An increase in foreign currency translation adjustments of ¥5.7 billion

Total Assets / Net Assets

Net Cash Provided byOperating Activities¥ Billion
250¥ Billion
25

216.0
200

143.6

150

10

50

5

2009

2010

2011

2012 2013 FY

Total Assets
Net Assets

24

15

100

0

19.6

20

LINTEC ANNUAL REPORT 2013

0

2009

2010

2011

2012 2013 FY

Operating Risks

The following is a summary of risks that could affect the LINTECGroup’s operations. This summary provides speciﬁc examples of major(3) Infrastructure failures, such as those related to electric power,
water, or communications

risks that are anticipated, but it does not include all risks. Forward-(4) Outbreaks of contagious diseases

looking statements of this report are based on the Company’s judgment(5) Unpredictable changes in laws and regulations, such as those

as of June 26, 2013.

involving tax systems, foreign exchange, or customs(6) Problems arising between the Group and its business associates

1. Changes in Economic Conditions

or in the collection of accounts receivable due to differences in

The Group’s operations include development in a wide range ofcultures or business practices

industries. Therefore, domestic and overseas economic conditions affect
the Group’s operations directly and indirectly. As a result, future trends

6. New Product Developmentin economic conditions could affect the Group’s business results.

The Group pursues R&D activities with a view to realizing comprehensive

Further, world trends in the electronics industry affect the Group’s

technological capabilities that cater to market demand and bringing

new businesses in the ﬁeld of electronics-related products. Future

to market competitive, high-value-added products. Accordingly, theelectronics industry trends could affect the Group’s business results.

Group is stepping up allocations of management resources to increase
its number of researchers and to pursue such initiatives as joint research

2. Changes in Selling Prices

with other companies and academic institutions. However, there is no

Due to intense competition in both the domestic and overseas markets

guarantee that such investment of management resources in R&D willin which the Group operates, the Group may be unable to maintain

result in the development of new products or increase operating income.

selling prices to preserve sufﬁcient earnings or sales share.

Due to such factors as extended development periods, it could become

Furthermore, the Group’s business results could be affected bynecessary to discontinue development, and if product development

difﬁculties related to cost reductions aimed at maintaining proﬁts

costs cannot be recovered, it could affect the Group’s business results.

and recovering its share by reﬁning customer services.
7. Intellectual Property Rights
3. Changes in Raw Material Prices

The Group takes necessary measures to protect intellectual property

The Group uses a great deal of pulp for paper, petrochemical products, andrights in Japan and overseas for various original production technologies

other raw materials and fuels. The prices of these materials and fuelsthat it has developed. However, legal measures alone do not provide

ﬂuctuate in accordance with market conditions, such as inventories

complete protection, possibly preventing the Group from effectively

and the supply-demand balance. The Group purchases raw materials

protecting the rights it has obtained. Furthermore, in the event thatin light of careful monitoring of market trends. However, a dramatica lawsuit is ﬁled by a third party regarding intellectual property rights

change in raw material prices could affect the Group’s business results.

infringement associated with the Group’s products, the Group’s businessresults could be affected.

4. Changes in Foreign Exchange Rates
The Group conducts foreign currency-denominated procurement and8. Signiﬁcant Lawsuits

sales overseas as well as ﬁnance transactions between both domestic

In conducting business in Japan and overseas, the Group may be

and overseas Group companies. Therefore, changes in foreign

subject to lawsuits or other claims related to product liability, envi-

exchange rates could affect the Group’s business results.

ronmental, or intellectual property rights issues. Lawsuits or claims,
depending on their content, could affect the Group’s business results.

5. Overseas Operations
The Group conducts manufacturing and business operations in markets

9. Legal and Regulatory Systems

worldwide. In these countries, the following events could affect theIn the countries in which it conducts business operations, the Group isGroup’s business results.

subject to various legal and regulatory systems, and the Group is working(1) Political instability or a deterioration in security due to such factors

to ensure rigorous compliance with these systems. In the event that theas terrorism, a political change, or a coup d’état(2) Labor disputes, such as those involving strikes or boycotts

systems are strengthened or changed, the Group’s business activities
could be restricted or the Group’s business results could be affected.

LINTEC ANNUAL REPORT 201325

Financial Section

Financial Summary
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31

2013

2012

2011

2010

¥190,844
10,564
5.5%
10,836
7,681
5.6%
5.2%

¥200,905
13,975
7.0%
13,382
8,648
6.6%
6.5%

¥212,733
20,8899.8%
19,565
13,62210.9%
9.7%¥189,348
11,576
6.1%
11,399
7,284
6.2%
6.1%

¥ 102.83
1,909.57
34.00¥ 115.26
1,766.60
40.00¥ 180.21
1,715.78
40.00¥ 96.36
1,596.37
24.00

Depreciation and amortization
Purchases of property, plant and equipment
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities¥ 10,141(13,823)
19,619(13,966)(2,877)¥ 10,079(8,760)18,910(12,262)(5,099)¥10,178(8,237)23,307(9,926)(2,820)¥10,537(7,777)22,259(9,253)(3,454)

At year-end:
Current assets
Current liabilities
Working capital
Cash and cash equivalents
Property, plant and equipment, net
Long-term debt, less current portion% of shareholders’ equity
Total assets
Net assets% of total assets¥138,505
56,911
81,59340,73964,915——
216,048
143,569
66.0%¥137,229
62,07575,15336,03662,273——
210,203132,84762.8%¥132,891
60,46572,42635,18861,888——206,188
130,57662.9%¥121,451
58,65462,79725,387
63,33754
0.0%
195,656
121,502
61.7%

76,564,240
4,270

76,564,240
4,286

76,564,240
4,198

76,564,240
4,037¥82,785
72,37252,061¥90,143
73,92553,225¥91,936
81,19355,317

—
—
—

2,380
3,196
4,980

5,213
3,942
4,846

7,990
6,732
6,129

—
—
—

For the year:
Net sales
Operating income% of net sales
Income before income taxes
Net income
Return on equity
Return on assets
Per share data (yen):
Net income
Net assets
Cash dividends

Number of shares outstanding
Number of employees
Segment information:
Net sales:
Printing and Industrial Materials ProductsElectronic and Optical Products
Paper and Converted Products
Segment income:Printing and Industrial Materials ProductsElectronic and Optical Products
Paper and Converted Products(Supplementary information)
Effective the year ended March 31, 2011, the “Accounting Standard for Disclosure about Segments of an Enterprise and Related Information” (Accounting Standards Board of Japan (ASBJ)
Statement No. 17, issued by ASBJ on March 27, 2009) and the “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance
No. 20, issued by ASBJ on March 21, 2008) have been applied.
Since it is impracticable to restate segment information of the ﬁscal years of 2010 and before complying revised accounting standards for segment information, only reportable segment
information for the year ended March 31, 2011 onward have been presented.

26

LINTEC ANNUAL REPORT 2013

Millions of yen, except per share data, number of shares, and number of employees

2009

2008

2007

2006

2005

2004

¥194,901
8,498
4.4%
5,215
3,391
2.9%
3.0%

¥202,297
14,8947.4%
13,191
9,308
8.0%
6.6%

¥192,723
14,798
7.7%
14,298
10,2389.5%
7.7%¥180,334
13,618
7.6%
13,214
9,011
9.2%
7.7%

¥171,689
12,370
7.2%
11,838
7,759
9.0%
7.1%

¥158,947
10,298
6.5%
12,182
7,778
10.2%
6.0%

¥ 44.86
1,497.58
20.00¥ 123.15
1,598.30
24.00¥ 135.44
1,489.87
18.00¥ 118.34
1,370.85
16.00¥ 108.76
1,226.28
14.00¥ 111.90
1,149.19
12.00¥11,286(9,584)
12,979(9,752)(2,300)¥ 9,011(14,700)
17,739(15,071)(769)¥ 7,701(11,646)
13,734(12,200)(68)¥ 6,823(12,715)
17,005(13,199)(2,789)¥ 6,216(8,699)
11,163(8,964)(411)¥ 5,503(8,699)9,475(8,497)(1,672)¥ 95,937
43,65552,282
15,37067,010107
0.1%
172,854
113,93065.5%¥120,028
67,631
52,397
17,31573,711201
0.2%
204,852
121,635
59.4%¥117,531
67,95049,581
15,55068,377280
0.3%
198,526
113,397
57.1%¥104,433
57,74846,685
13,766
63,176347
0.3%
181,158
104,36257.6%¥ 97,510
54,816
42,694
9,191
56,411429
0.5%
169,590
92,768
54.7%¥ 90,437
58,10932,3286,254
53,879622
0.8%
162,708
80,34749.4%

76,564,240
3,987

76,564,240
3,802

76,564,240
3,708

76,564,240
3,537

76,564,240
3,421

70,817,980
3,171

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

LINTEC ANNUAL REPORT 201327

Financial Section

Consolidated Balance Sheets
LINTEC Corporation and its consolidated subsidiaries
March 31, 2013 and 2012ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

Current assets:¥ 44,603¥ 40,907

Trade notes and accounts receivable (Notes 4, 11)

61,79164,765657,006

Inventories (Note 3)

27,531

27,217292,735

Deferred tax assets (Note 16)

2,307

2,189

24,536

Other

2,530

2,395

26,906

Allowance for doubtful accounts

(259)

(246)

(2,757)

138,505

137,229

1,472,675

Cash and deposits (Notes 9, 11)

Total current assets$

474,248

Non-current assets:
Property, plant and equipment (Notes 7, 10):
Buildings and structures

61,42457,436653,105

Machinery, equipment and vehicles

109,006

102,714

1,159,030

Land

10,382

9,238

110,394

Construction in progress

1,023

2,716

10,881Other

10,844

10,252

115,307

192,682

182,357

2,048,720(127,767)(120,083)(1,358,501)

64,91562,273

690,218

3,047

2,345

32,406

Investment securities (Notes 11, 12)

3,370

2,379

35,836

Deferred tax assets (Note 16)

5,047

4,894

53,669Other (Note 14)

1,334

1,256

14,183

Allowance for doubtful accounts

(171)

(175)

(1,826)

Total investments and other assets

9,580

8,354

101,863

Total non-current assets

77,543

72,973

824,488¥ 216,048¥ 210,203$ 2,297,163

Accumulated depreciation
Property, plant and equipment, net
Intangible assets (Note 10):Investments and other assets:

Total assets
The accompanying notes are an integral part of the consolidated ﬁnancial statements.

28

LINTEC ANNUAL REPORT 2013

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

Current liabilities:
Trade notes and accounts payable (Notes 4, 11)¥ 43,124¥ 45,612$ 458,527

Short-term borrowings (Notes 11, 23)

1,430

1,320

15,204

Accrued income taxes (Notes 11, 16)

1,931

1,223

20,537

46

30

498

10,37813,888110,355

56,911

62,075605,123

14,136

13,914150,304

132

132

1,410

1,297

1,232

13,79815,566

15,279165,513

23,201

23,201

246,691

Capital surplus

26,83026,830285,278

Retained earnings

99,19894,281

1,054,742

Provision for director’s bonuses
Other (Notes 11, 13)
Total current liabilities
Non-current liabilities:
Accrued pension costs (Note 14)
Provision for environmental measures
Other
Total non-current liabilities
Commitments and contingent liabilities (Note 2)
Net assets:
Shareholders’ equity (Note 22):
Common stock:
Authorized: 300,000,000 shares in 2013 and 2012
Issued: 76,564,240 shares in 2013 and 2012

Less: treasury stock, at cost:
1,869,676 shares in 2013 and 1,868,921 shares in 2012
Total shareholders’ equity(2,752)(2,750)(29,262)

146,478

141,561

1,557,449

Accumulated other comprehensive income
Net unrealized holding gain on securities

213

117

2,267

Foreign currency translation adjustments(3,843)(9,561)(40,868)

Adjustment regarding pension obligations of consolidated overseas subsidiaries
Total accumulated other comprehensive income

(213)

(160)

(2,270)(3,843)(9,604)(40,870)
1,206

Share subscription rights (Note 15)

113

94

Minority interests

822

796

8,741

Total net assets

143,569

132,847

1,526,526

Total liabilities and net assets¥216,048¥210,203$2,297,163

LINTEC ANNUAL REPORT 201329

Financial Section

Consolidated Statements of Income
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2013 and 2012

Millions of yen

ASSETSNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses (Notes 5, 6)
Operating income
Non-operating income:Interest income
Dividends income
Rent income
Gain on sales of noncurrent assets
Foreign exchange gains
Other income
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on retirement of noncurrent assets
Compensation expenses
Foreign exchange losses
Other expenses
Total non-operating expenses
Ordinary income
Extraordinary gain:
Subsidy
Total extraordinary gain
Extraordinary loss:
Loss on valuation of investment securities (Notes 11, 12)Loss on liquidation of subsidiaries
Loss on valuation of subsidiaries’ stocks
Loss on valuation of membership
Loss on retirement of noncurrent assets (Note 7)
Total extraordinary losses
Income before income taxes
Income taxes (Note 16):
Current
Deferred
Total income taxes
Income before minority interests
Minority interests
Net income (Note 22)

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥190,844
150,432
40,411
29,847
10,564¥200,905
158,738
42,16728,192
13,975$2,029,179
1,599,495
429,683
317,354
112,329

251
228
50
10
543
220
1,304

233
53
52
24
—
260
625

2,669
2,425
539
114
5,775
2,348
13,873

57
345
339
—
145
887
10,981

24
446
86
303
126
986
13,613

612
3,671
3,611
—
1,546
9,441
116,761

44
44

22
22

471
471

—
—
—
—
189
189
10,836

128
84
28
11
—
253
13,382

—
—
—
—
2,014
2,014
115,219

3,419
(256)
3,162
7,673
(7)
7,681

3,689
987
4,677
8,704
56
8,648

36,353(2,728)33,624
81,594(77)
81,671¥¥$

Consolidated Statements of Comprehensive Income
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2013 and 2012

Millions of yen

ASSETS
Income before minority interests
Other comprehensive income
Net unrealized holding gain on securities (Note 8)
Foreign currency translation adjustments (Note 8)
Adjustment regarding pension obligations of consolidated overseas subsidiaries (Note 8)
Total other comprehensive income (Note 8)
Comprehensive income(Comprehensive income attributable to:)Shareholders of the parent
Minority interests
The accompanying notes are an integral part of the consolidated ﬁnancial statements.

30

LINTEC ANNUAL REPORT 2013

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥ 7,673¥ 8,704$ 81,594

95
5,750
(52)
5,794
¥13,468

14(1,713)(19)(1,718)¥ 6,986

1,019
61,147(560)
61,607$143,201

13,442
25

6,976
9

142,925276

Consolidated Statements of Changes in Net Assets
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2013 and 2012

Thousands

Millions of yen
Shareholders’ equity

Balance as at April 1, 2011

Accumulated other comprehensive income

Number ofshares ofcommonstock

Commonstock

CapitalsurplusRetainedearnings

Net
Total
unrealized
Treasury shareholders’ holding gain
stock
equity on securities

76,564¥23,201¥26,830¥88,638¥(1,035)¥137,634¥102

Adjustment
regardingpension
Total
Foreign obligations of accumulated
currency consolidated other comtranslation
overseasprehensive
adjustments subsidiaries
income¥(7,894)¥(141)¥(7,932)

Share
subscription
rightsMinority
interests

Total net
assets¥88¥786¥130,576

Changes during the year:
Cash dividends(3,005)(3,005)—

Net income

8,648

8,648

—

8,648

(1,719)(1,719)—(1,719)

3

4

—

4

Purchase of treasury stock
Disposal of treasury stock0

Net changes in items otherthan shareholders’ equity(3,005)—14(1,667)(19)(1,672)

5

9

Total changes during the year

—

—

0

5,642

(1,715)3,927

14(1,667)(19)(1,672)5

9(1,656)2,271

Balance as at March 31, 2012

76,56423,201

26,83094,281(2,750)141,561

117(9,561)(160)(9,604)

94

796

132,847

Changes during the year:
Cash dividends(2,763)(2,763)—(2,763)

Net income

7,681

7,681

—

7,681

(1)

(1)

—

(1)

0

0

—

0

—

95

5,717

(52)

5,760

19

25

(1)

4,916

95

5,717

(52)

5,760

19

25

5,805
10,722¥(2,752) ¥146,478¥213¥(3,843)¥(213)¥(3,843)

¥113

¥822

¥143,569

Purchase of treasury stock
Disposal of treasury stock0

Net changes in items otherthan shareholders’ equity
Total changes during the year

—

—

0

4,917

Balance as at March 31, 2013

76,564¥23,201¥26,830¥99,198

Thousands

Thousands of U.S. dollars (Note 1)
Shareholders’ equity

Balance as at April 1, 2012

Number ofshares ofcommonstock

Commonstock

76,564$246,691

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Net
Total unrealized
Treasury shareholders’ holding gain
equity on securities
stock

Adjustment
regardingpension
Total
Foreign obligations of accumulated
currency consolidated other comtranslation
overseasprehensive
adjustments subsidiaries
income$1,248 $(101,662)$(1,709) $(102,124)

Sharesubscription
rights$1,003

Minority
interests

Total net
assets$285,278 $1,002,456$(29,249) $1,505,176$8,465 $1,412,520

Cash dividends(29,385)(29,385)—(29,385)

Net income

81,671

81,671—

81,671

(13)

(13)

—

(13)

0

0

—

0

—

1,019

60,794(560)

61,253203

276

61,733(13)

52,273

1,019

60,794(560)

61,253203

276

114,006

76,564 $246,691 $285,278 $1,054,742 $(29,262) $1,557,449$2,267$(40,868)$(2,270) $(40,870)$1,206

Changes during the year:

Purchase of treasury stock
Disposal of treasury stock0

Net changes in items otherthan shareholders’ equity
Total changes during the year
Balance as at March 31, 2013

—

—

0

52,286$8,741 $1,526,526

The accompanying notes are an integral part of the consolidated ﬁnancial statements.

LINTEC ANNUAL REPORT 201331

Financial Section

Consolidated Statements of Cash Flows
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2013 and 2012ASSETSCash flows from operating activities:
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in accrued pension costs
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses(Gain) loss on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable(Gain) loss on sales of investment securities
Loss on valuation of investment securities
Loss on valuation of membership
Increase (decrease) in provision for environmental measures
Loss on valuation of subsidiaries’ stocks
Loss on liquidation of subsidiaries
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries
Purchase of investments in capital of subsidiaries
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings
Cash dividends paid
Purchase of treasury stock
Repayments of lease obligation
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 9)
The accompanying notes are an integral part of the consolidated ﬁnancial statements.

32

LINTEC ANNUAL REPORT 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2012

2013

¥ 10,836
10,141
57
(11)
161
(1)
(479)
57
(8)
432
4,044
853
(3,231)
(2)
—
0
—
—
—
(889)
21,960495(57)(2,778)
19,619¥ 13,382
10,079
42
(11)
75
28
(286)
24
(4)
362
(2,008)
59
1,488
0
128
11
(16)
28
84
1,162
24,631259(24)(5,955)
18,910$ 115,219
107,833
615
(118)
1,716
(15)
(5,094)
612
(92)
4,594
43,001
9,069(34,364)
(30)
—
6
—
—
—
(9,452)
233,500
5,263(612)(29,544)
208,606(8,286)
9,916(13,823)
10
(788)
(2)
4
(775)
(79)
(70)
160
(231)
(13,966)(7,991)
5,136(8,760)
70
(636)
(2)
0
—
—
(56)
43
(65)
(12,262)(88,110)
105,437(146,976)
110(8,388)(27)
52(8,247)
(846)
(748)
1,710
(2,462)(148,499)

110(2,759)(1)(226)
0(2,877)
1,927
4,703
36,036¥ 40,739(146)(3,002)(1,719)(231)
0(5,099)(700)
848
35,188¥ 36,036

1,169(29,340)(13)(2,410)0(30,593)
20,49750,011
383,161$ 433,172

Notes to Consolidated Financial Statements
LINTEC Corporation and its consolidated subsidiaries
March 31, 2013

1. Summary of Significant Accounting Policies(a) Basis of presenting financial statements
LINTEC Corporation (the “Company”) maintains its accounting records
and prepares its consolidated financial statements in accordance withaccounting principles generally accepted in Japan, which are different incertain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards. The accompanying consolidated financial statements have been compiled from the consolidated
financial statements prepared by the Company as required by the
Financial Instruments and Exchange Law of Japan.
In addition, the notes to the consolidated financial statements include
information which is not required under accounting principles generally
accepted in Japan but is presented herein as additional information.
For the convenience of the readers, the accompanying consolidated
financial statements have been presented in U.S. dollars by translating
all Japanese yen amounts at the rate of ¥94.05=U.S.$1, the prevailingexchange rate as of March 31, 2013.
As permitted under the Financial Instruments and Exchange Law ofJapan, amounts of less than one million yen have been omitted. As aresult, the totals shown in the accompanying consolidated financial
statements do not necessarily agree with the sum of the individual
amounts.
Certain reclassifications of previously reported amounts have been
made to conform to the consolidated financial statements for the year
ended March 31, 2013 presentation.
(b) Consolidation
The accompanying consolidated financial statements include theaccounts of the Company and its 24 significant subsidiaries as of March
31, 2013, but exclude subsidiaries whose total assets, retained earnings,
net sales and net income are not material in relation to the comparable
amounts in these statements. All significant intercompany accounts andtransactions have been eliminated in consolidation.
Goodwill is amortized over periods of the estimated useful economic
lives (mainly 5 years) on a straight-line basis. Negative goodwill incurredprior to the year ended March 31, 2010 is amortized for 5 years on astraight-line basis.
Investments in subsidiaries and affiliates, which are not consolidated
or accounted for by the equity method, are carried at cost. Where there
has been a permanent decline in the value of such investments, theCompany has written down the investments.
Certain subsidiaries are consolidated on the basis of fiscal period
ending December 31, which differ from that of the Company. The necessary adjustments are made to the financial statements of such
subsidiaries to reflect any significant transactions from their respective
fiscal year ends to March 31.
(c) Foreign currency translation
Receivables, payables and securities denominated in foreign currencies
are converted into Japanese yen at the exchange rates at fiscal year end.
Transaction in foreign currencies is recorded based on the prevailingexchange rate on the transaction dates and the resulting translation
gains or losses are included in statements of income.
In respect of the financial statement items of overseas subsidiaries,
all assets and liabilities accounts are translated into Japanese yen by
applying the exchange rates in effect at the fiscal year end. All income
and expense accounts are translated into Japanese yen by applying the
average exchange rate during the fiscal year.
Translation differences after allocating to minority interest for portions
attributable to minority interest are reported as foreign currency translation adjustments in a separate component of net assets in theaccompanying consolidated balance sheets.

(d) Investment securities
Securities with market value are stated at fair value, and changes in fairvalue are recorded as a separate component of net assets at an amount,net of tax, and the moving average method is used to calculate theoriginal cost. Securities without market value are stated at cost determined by the moving average method.
(e) Derivatives
Derivatives are stated at fair value.
(f) Inventories
Inventories mainly apply the cost method based on the weighted-averagemethod, which determines the amount of the inventories shown on the
consolidated balance sheets by writing them down based on thedecrease in their profitability.
Machinery applies the cost method based on the specific identification
method, which determines the amount of the inventories shown on the
consolidated balance sheets by writing them down based on thedecrease in their profitability.
(g) Property, plant and equipment (Excluding leased assets)
Property, plant and equipment are stated at cost. Depreciation in the
Company is principally computed by the declining-balance method overthe estimated useful lives of the respective assets except for the buildings
acquired after April 1, 1998, for which the straight-line method is used.
Depreciation in its consolidated foreign subsidiaries is computed by
the straight-line method over the useful lives of the respective assets.
The significant useful lives are summarized as follows:
Buildings and structures
2 — 50 years
Machinery, equipment and vehicles
3 — 17 years(h) Intangible assets (Excluding leased assets)
Intangible assets are stated at cost less accumulated amortization.
Capitalized costs of software for internal use and other intangible assets
are amortized using the straight-line method over estimated lives (5 years).
(i) Leases
Leased assets arising from finance lease transactions which transfer
ownership to the lessee are depreciated as the same as the owned
property, plant and equipment.
Leased assets arising from finance lease transactions which do nottransfer ownership to the lessee are depreciated to a residual value ofzero by the straight-line method using the contract term as the useful life.
(j) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at the amount of
estimated uncollectible accounts, based on individual collectability withrespect to identified doubtful receivables and past experience of doubtfulreceivables.
(k) Provision for director’s bonuses
Bonus to directors is accrued at the year end and to be paid in thefollowing year when such bonuses are attributable.
(l) Accrued pension costs
Accrued pension cost has been provided based on the projected
retirement benefit obligation and the pension plan assets.
Actuarial gain and loss are amortized in the year following the year inwhich the gain or loss is recognized primarily by the straight-line
method principally over 15 years. Prior service cost is being amortizedby the straight-line method principally over 15 years.
(m) Provision for environmental measures
The provision for environmental measures is estimated and recorded toprovide for future potential costs, such as costs related to removal anddisposal of toxic substances based on related legal requirements.
(n) Accounting for consumption taxes
Transactions subject to consumption taxes are recorded at amounts
exclusive of consumption taxes.

LINTEC ANNUAL REPORT 201333

Financial Section(o) Cash and cash equivalents
Cash and cash equivalents are composed of cash and time deposits, allof which are low-risk, short-term financial instruments readily convertible into cash.
(p) Research and development costs
Research and development costs are charged to income when incurred.
(q) Income taxes
Deferred tax assets and liabilities are determined based on differences
between financial reporting and tax bases of assets and liabilities andare measured using enacted tax rates and laws that will be in effectwhen the differences are expected to reverse.
(r) Shareholders’ equity
The Corporation Law of Japan provides that an amount equal to 10% of
the amount to be distributed as distributions of capital surplus (otherthan the capital reserve) and retained earnings (other than the legal
reserve) be transferred to the capital reserve and the legal reserve,
respectively, until the sum of the capital reserve and the legal reserve
equals 25% of the common stock account. Such distributions can bemade at any time by resolution of the shareholders or by the Board of
Directors if certain conditions are met, but neither the capital reserve
nor the legal reserve is available for distributions.

(s) Accounting standards issued but not yet applied• Accounting Standard for Retirement Benefits (Accounting Standards
Board of Japan (ASBJ) Statement No.26, issued by ASBJ on
May 17, 2012)• Guidance on Accounting Standard for Retirement Benefits (ASBJ
Guidance No.25, issued by ASBJ on May 17, 2012)(1) Overview
Actuarial gains and losses and prior service costs that are yet to berecognized in profit or loss shall be recognized within net assets,
after adjusting for tax effects, and the funding deficit or surplus shallbe recognized as a liability (liability for retirement benefits) or asset(asset for retirement benefits). In addition, the standard and guidance
allows a choice for the method of attributing expected retirement
benefits to periods of either the straight-line basis or the plan’sbenefit formula basis. Furthermore, the method for calculating thediscount rate has been amended.
(2) Application schedule
The Company expects to apply the standard and guidance from theconsolidated financial statements for the year ending March 31, 2014.
The amendment of the method for attributing expected retirement
benefits will, however, be adopted from the beginning of the year
ending March 31, 2015.
(3) Effect of application
The effect of applying the standard and guidance is currently underassessment.

2. Commitments and Contingent Liabilities
The Company and its consolidated subsidiaries had unused lines of credit for short-term financing aggregating ¥30,488 million (U.S. $324,178
thousand) and ¥30,364 million at March 31, 2013 and 2012, respectively.
3. Inventories
Finished goods and merchandise, work in process, and raw materials and supplies as of March 31, 2013 and 2012 were as follows:
Millions of yen

Thousands of
U.S. dollars

Finished goods and merchandise2013¥ 8,4062012¥ 8,7542013$ 89,384

Work in process

11,294

10,544

120,086

Raw materials and supplies

7,831

7,918

83,264¥27,531¥27,217$292,735

ASSETS

Total

4. Notes Maturing as of the End of the Fiscal Year
Notes maturing as of the end of the fiscal year are settled on the clearing date. In addition, accounts receivable and payable with due date that is the last day of
the fiscal year are also settled on the clearing date. As the last day of the current fiscal year was a non-business day of financial institutions, the following
amounts of receivables and payables maturing as of March 31, 2013 and 2012 were included in the ending balance.
Thousands of
U.S. dollars

Trade notes and accounts receivable2013¥5,173

2012¥4,616

2013$55,009

Trade notes and accounts payable

8,323

7,382

88,499ASSETS

34

Millions of yen

LINTEC ANNUAL REPORT 2013

5. Selling, General and Administrative Expenses
Major items included in selling, general and administrative expenses for the years ended March 31, 2013 and 2012 were as follows:

ASSETSTransportation and warehousing expenses
Provision for allowance for doubtful accounts

2013¥ 4,812

Millions of yen

Thousands of
U.S. dollars

2012¥ 4,7622013$ 51,165

86

161

924

6,356

5,929

67,583

Provision for retirement benefits

545

557

5,796

Provision for director’s bonuses

46

30

498

Depreciation

880

878

9,361

Research and development expenses

7,263

6,154

77,229

Other

9,856

9,717

104,795¥29,847¥28,192$317,354

Salaries and allowances

Total

6. Research and Development Expenses
Research and development expenses, all of which were included in selling, general and administrative expenses, for the years ended March 31, 2013
and 2012 were ¥7,263 million (U.S.$77,229 thousand) and ¥6,154 million, respectively.
7. Loss on Retirement of Noncurrent Assets
Loss on retirement of noncurrent assets was principally related to retirement of buildings and structures for the year ended March 31, 2013.
8. Comprehensive Income
Reclassification adjustment and tax effect of other comprehensive income for the years ended March 31, 2013 and 2012 were as follows:
Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

¥ 137

¥ (119)$ 1,462

(2)

128

(30)

Prior to deducting tax effect

134

9

1,432

Tax effect

(38)

5

(412)

Net unrealized holding gain on securities

95

14

1,019

5,750

(1,713)

61,147

―

—

—

5,750

(1,713)

61,147ASSETSNet unrealized holding gain on securities:
Amount incurred during the fiscal year
Reclassification adjustment

Foreign currency translation adjustments:
Amount incurred during the fiscal year
Reclassification adjustment
Prior to deducting tax effectTax effect

―

—

—

5,750

(1,713)

61,147

Amount incurred during the fiscal year

(201)

(46)

(2,137)

Reclassification adjustment

116

17

1,241

Prior to deducting tax effect

(84)

(29)

(895)

Tax effect

31

10

335

Adjustment regarding pension obligations of consolidated overseas subsidiaries

(52)

(19)

(560)

¥5,794¥(1,718)$61,607

Foreign currency translation adjustments
Adjustment regarding pension obligations of consolidated overseas subsidiaries:

Total other comprehensive income

LINTEC ANNUAL REPORT 201335

Financial Section

9. Cash and Cash Equivalents
Reconciliation between cash and cash equivalents in the consolidated statements of cash flows and cash and deposits in the consolidated balance
sheets as of March 31, 2013 and 2012 were as follows:

ASSETSCash and deposits
Time deposits with maturity of more than 3 months
Cash and cash equivalents

Millions of yen

Thousands of
U.S. dollars

2012¥40,9072013$474,2482013¥44,603(3,863)(4,871)(41,075)¥40,739¥36,036$433,172

Assets and liabilities related to finance lease transactions newly recognized for the years ended March 31, 2013 and 2012, were ¥177 million(U.S. $1,883 thousand) and ¥115 million, respectively.
10. Leases(Lessee’s accounting)For finance lease transactions that transfer ownership, leased assets recognized as property, plant and equipment are mainly production facilities forthe years ended March 31, 2013 and 2012.
For finance lease transactions that do not transfer ownership, leased assets recognized as property, plant and equipment are mainly production
facilities and vehicles, and those recognized as intangible assets are mainly software for the years ended March 31, 2013 and 2012.
The minimum lease payments under noncancellable operating leases as of March 31, 2013 and 2012 were as follows:

ASSETS
Due within 1 year
Due after 1 year
Total

11. Financial Instruments
1. Status of financial instruments(1) Policy regarding financial instruments
The LINTEC Group (the “Group”) limits the scope of its cash and fundmanagement activities to short-term deposits and has a policy of relying
principally on bank borrowings.
The Group makes use of derivatives only to reduce risk of foreign
currency exchange fluctuations and has a policy of not engaging inderivative transactions for speculative purposes.
(2) Details of financial instruments and associated risk andrisk management system
In the course of its business activities, the Group is exposed to credit
risk arising from trade notes and accounts receivable that are
outstanding from its customers. Regarding the risk pursuant to theinternal regulations for managing its credit exposure and tradereceivables, due dates and balances are managed appropriately foreach customer, to mitigate risks of uncollectible accounts.
Investment securities are stocks being exposed to market price risk,
and these are mainly the stocks of companies with which the Group hasbusiness relationships and it periodically confirms the market value.

36

LINTEC ANNUAL REPORT 2013

2013
¥120

Millions of yen

Thousands of
U.S. dollars

2012
¥101

2013
$1,278

48

125

510

¥168

¥227

$1,788All of the trade payables—trade notes and accounts payable—are due
within 1 year.
The Company has commitment line contracts with financial institutions
and the borrowings are raised mainly for business activities and capital
investments.
The Group is exposed to liquidity risk from its business-related
obligations and borrowings but the Company and its consolidated
subsidiaries prepare and implement financing plans to manage theliquidity risk.
The Group conducts and manages such transactions based oninternal rules and regulations. Director of administration division isin charge of managing derivative transactions and related reports are
submitted to top management for each case. In addition, the contract
amounts of derivative transactions described below in Note 13,“Derivatives,” does not represent the market risk associated with
derivative transactions.

2. Estimated fair value and other matters related to financial instruments
Carrying value on the consolidated balance sheets as of March 31, 2013 and 2012 along with their fair value and the variance were shown in thefollowing table.
Thousands of
U.S. dollars

Millions of yen

2013

ASSETS(1) Cash and deposits(2) Trade notes and accounts receivable(3) Investment securities
Other securities(4) Trade notes and accounts payable(5) Short-term borrowings(6) Accrued income taxes(7) Derivative instruments

Carrying value

Estimated
fair value

Variance¥ 44,603
61,791¥ 44,603
61,791¥——

1,816(43,124)(1,430)(1,931)(15)

1,816(43,124)(1,430)(1,931)
(15)

—
—
—
—
—

Carrying value

Estimated
fair value

Variance$ 474,248
657,006$ 474,248
657,006$——

19,311(458,527)(15,204)(20,537)(170)

19,311(458,527)(15,204)(20,537)
(170)

—
—
—
—
—

Note: Figures shown in parentheses are liability items.
Millions of yen

ASSETS

2012(1) Cash and deposits(2) Trade notes and accounts receivable(3) Investment securities
Other securities(4) Trade notes and accounts payable(5) Short-term borrowings(6) Accrued income taxes(7) Derivative instruments

Carrying value

Estimated
fair value

Variance¥ 40,907
64,765¥ 40,907
64,765¥——

1,680(45,612)(1,320)(1,223)(24)

1,680(45,612)(1,320)(1,223)
(24)

—
—
—
—
—

Note 2: Financial instruments for which obtaining an estimated fair value is deemed to be
extremely difﬁcult:Note: Figures shown in parentheses are liability items.
Note1: Method of computing the estimated fair value of ﬁnancial instruments, securities andderivative instruments(1) Cash and deposits; (2) Trade notes and accounts receivable
Since these items are settled in a short period of time and have estimated fair values
that are virtually the same as the carrying value on the ledger, the carrying value has
been used.
(3) Investment securities
The market value of investment securities is determined by the price of the stock
traded on an exchange market.
(4) Trade notes and accounts payable; (5) Short-term borrowings; (6) Accrued income
taxes
Since these items are settled in a short period of time and have estimated fair values
that are virtually the same as the carrying value on the ledger, the carrying value has
been used.
(7) Derivative instruments
Please see Note 13, “Derivatives.”

Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

Carrying value

Carrying value

Carrying value¥1,554¥698$16,254

Unlisted Stocks

The unlisted stocks in the preceding table do not have market values, and as estimating
their future cash ﬂows is deemed to be extremely difﬁcult, they are not included in the abovetable “(3) Investment securities.”
Note 3: Planned redemption amounts after the balance-sheet date for held-to-maturity
securities and receivables were as follows:
Millions of yen

Cash and deposits
Trade notes and accounts
receivable
Total

Thousands of
U.S. dollars

2013

2012

2013

Within 1 year

Within 1 year

Within 1 year

¥ 44,570¥ 40,643$ 473,905

61,791¥106,362

64,765¥105,409

657,006$1,130,911

12. Marketable and Investment Securities
The carrying value and acquisition cost of other securities as of March 31, 2013 and 2012 were as follows:
Millions of yen

Thousands of
U.S. dollars

2013

ASSETS
Carrying value

Acquisition cost

Unrealized gain
(loss)

Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks¥1,370

¥ 908

¥ 462

$14,576$ 9,660$ 4,916

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

¥1,370

¥ 908

¥ 462

$14,576$ 9,660$ 4,916

Stocks

¥ 445

¥ 590

¥(145)$ 4,734$ 6,278$(1,543)

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

Subtotal

¥ 445

¥ 590

¥(145)$ 4,734$ 6,278$(1,543)

Total¥1,816¥1,499¥ 317$19,311$15,938$ 3,372

Description

Securities whose carrying value
exceeds their acquisition cost
Subtotal
Securities whose acquisition costexceeds their carrying value

LINTEC ANNUAL REPORT 201337

Financial Section

Millions of yen

ASSETS

2012
Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks

¥ 922

¥ 618

¥ 304

Bonds

—

—

—

Other

—

—

—

¥ 922

¥ 618

¥ 304

Stocks

¥ 757

¥ 879

¥(121)

Bonds

—

—

—

Other

—

—

—

Subtotal

¥ 757

¥ 879

¥(121)

Total¥1,680¥1,498¥ 182

Description

Securities whose carrying value
exceeds their acquisition cost
Subtotal
Securities whose acquisition costexceeds their carrying value

The Company wrote down by ¥128 million against other securities with a remarkable decline in the value of investment for the year ended
March 31, 2012.
13. Derivatives
Derivative transactions to which the Company did not apply hedge accounting as of March 31, 2013 and 2012 were as follows:(Currency related)
Millions of yen

2013
Contract amounts
Total

Over 1 year

Estimated
Fair value

Sell : U.S. dollars (buy Japanese yen)

¥313

¥—

¥ (5)

Buy : Japanese yen (sell U.S. dollars)

207

—

(10)

(10)

¥521

¥—

¥(15)

¥(15)

Nature of transaction

Off-market transactions

Unrealized
gain (loss)¥ (5)Forward exchange contracts to:

Total

Thousands of U.S. dollars

2013
Contract amounts
Total

Over 1 year

Estimated
Fair value

Sell : U.S. dollars (buy Japanese yen)

$3,337$—$ (61)

Buy : Japanese yen (sell U.S. dollars)

2,202

—

(108)

(108)

$5,539$—$(170)$(170)Nature of transaction

Off-market transactions

Unrealized
gain (loss)$ (61)

Forward exchange contracts to:

Total

Note: Method of computing the estimated fair value is based on information provided by ﬁnancial institutions at the end of the ﬁscal year.
Millions of yen

2012
Contract amounts
Total

Over 1 year

Estimated
Fair value

Sell : U.S. dollars (buy Japanese yen)

¥ 831

¥—

¥(24)

Buy : Japanese yen (sell Taiwan dollars)

369

—

0

0

Buy : Japanese yen (sell U.S. dollars)

287

—

0

0

Nature of transaction

Off-market transactions¥(24)

Forward exchange contracts to:

Buy : Japanese yen (sell Thai Baht)
Total

48

—

(0)

(0)

¥1,537

¥—

¥(24)

¥(24)

Note: Method of computing the estimated fair value is based on information provided by ﬁnancial institutions at the end of the ﬁscal year.

38

Unrealized
gain (loss)

LINTEC ANNUAL REPORT 2013

14. Accrued Pension Costs
The Company and its domestic subsidiaries sponsor a corporate pension fund under the Japanese Defined Benefit Corporate Pension Law andretirement plans for their employees. Certain foreign consolidated subsidiaries have defined contribution plans and defined benefit plans.
Actuarial present value of projected benefit obligations and unfunded status as of March 31, 2013 and 2012 were as follows:
Millions of yen

Thousands of
U.S. dollars

2012¥ (32,396)

2013$(389,833)

2013¥ (36,663)

ASSETS
Actuarial present value of projected benefit obligations
Plan assets

18,16515,809193,147

Unfunded accrued pension costs(18,498)(16,586)(196,685)

Unrecognized net actuarial loss

6,043

4,681

64,260

Unrecognized prior service cost

(1,681)(1,965)(17,879)

Net retirement benefit obligation recognized in the consolidated balance sheet(150,304)(14,136)(13,870)

Prepaid pension costs

―

44

―

Accrued pension costs¥ (14,136)¥ (13,914)$(150,304)

Millions of yen

Thousands of
U.S. dollars

2012¥1,2702013$13,376

Components of pension and severance cost for the years ended March 31, 2013 and 2012 were as follows:2013¥1,258ASSETS
Service cost
Interest cost

667

662

7,092

Expected return on plan assets

(559)

(547)

(5,948)Unrecognized net actuarial loss

540

534

5,749

Prior service cost

(244)

(304)

(2,603)

Other
Total

109

93

1,168

¥1,771¥1,708$18,836

Major assumptions at the beginning of each of the years ended March 31, 2013 and 2012 were as follows:2013
Mainly 1.3%

ASSETS
Discount rate
Expected rate of return on plan assets

2012
Mainly 2.0%

Mainly 3.5%

Mainly 3.5%

Straight-line method

Straight-line method

Term of amortization of unrecognized net actuarial loss

15 years

15 years

Term of amortization of prior service cost

15 years

15 years

Allocation method of pension costs

15. Stock Option Plan
Components of stock-based compensation expense for the years ended March 31, 2013 and 2012 were as follows:

ASSETS
Cost of sales
Selling, general and administrative expenses

Millions of yen

Thousands of
U.S. dollars

2013
¥ 3

2012
¥―

2013
$ 39

15

9

163

The following table summarizes contents of stock options as of March 31, 2013:
The first share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period

The Company
August 10, 2006
Directors, 17
Common stock 10,500 shares
August 25, 2006
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 26, 2006 to August 25, 2026

LINTEC ANNUAL REPORT 201339

Financial Section

The second share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period
The third share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period
The fourth share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period
The fifth share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period
The sixth share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period

40

LINTEC ANNUAL REPORT 2013

The Company
August 9, 2007
Directors, 17
Common stock 9,300 shares
August 24, 2007
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 25, 2007 to August 24, 2027

The Company
August 8, 2008
Directors, 14
Common stock 9,800 shares
August 25, 2008
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 26, 2008 to August 25, 2028

The Company
August 7, 2009
Directors, 14
Common stock 15,000 shares
August 24, 2009
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 25, 2009 to August 24, 2029

The Company
August 9, 2010
Directors, 16
Common stock 14,100 shares
August 24, 2010
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 25, 2010 to August 24, 2030

The Company
August 9, 2011
Directors, 8Common stock 7,600 shares
August 24, 2011
Persons who have received allotment of share subscription rights must hold the position of
director of the Company at the time of grant.
—
From August 25, 2011 to August 24, 2031

The seventh share subscription rights
Name of Company
Date of approval of the Board of Directors
Position and number of grantees
Class and number of stocks
Date of grantCondition and settlement of rights
Period of providing service for stock options
Exercise period

The Company
August 8, 2012
Directors, 8 and Executive Officers, 12
Common stock 15,900 shares
August 23, 2012
Persons who have received allotment of share subscription rights must hold the position of
director or executive officer of the Company at the time of grant.
—
From August 24, 2012 to August 23, 2032

The following tables summarize the scale and movement of stock options for the years ended March 31, 2013 and 2012:(Non-vested stock options)

Stock options outstanding at April 1, 2011
Stock options granted
Forfeitures
Conversion to exercisable stock options
Stock options outstanding at March 31, 2012
Stock options granted
Forfeitures
Conversion to exercisable stock options
Stock options outstanding at March 31, 2013

The first sharesubscription rights

The second sharesubscription rights

The third sharesubscription rights

The fourth sharesubscription rights

The fifth sharesubscription rights

The sixth sharesubscription rights

The seventh sharesubscription rights

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

—
7,600
—
7,600
—
—
—
—
—

—
—
—
—
—
15,900—15,900—The first sharesubscription rights

The second sharesubscription rights

The third sharesubscription rights

The fourth sharesubscription rights

The fifth sharesubscription rights

The sixth sharesubscription rights

The seventh sharesubscription rights

6,000
—
—
—
6,000
—
—
—
6,000

5,500
—
—
—
5,500
—
—
—
5,500

9,800
—
500
—
9,300
—
—
—
9,300

15,000—800—
14,200———14,20014,100—1,400—
12,700———12,700

—
7,600
—
—
7,600
—
—
—
7,600

—
—
—
—
—
15,900——15,900(Vested stock options)

Stock options outstanding at April 1, 2011
Conversion from not exercisable stock options
Stock options exercised
Forfeitures
Stock options outstanding at March 31, 2012
Conversion from not exercisable stock options
Stock options exercised
Forfeitures
Stock options outstanding at March 31, 2013

The following table summarizes the price information of stock options as of March 31, 2013:

Exercise price
Average market price of the stock at the timeof exercise
Fair value at the date of grant

The first sharesubscription rights

The second sharesubscription rights

The third sharesubscription rights

The fourth sharesubscription rights

The fifth sharesubscription
rights

The sixth sharesubscription
rights

The seventh sharesubscription
rights

¥1

¥1

¥1

¥1

¥1

¥1

¥1

—

—

—

—

—

—

—

2,788

1,947

1,481

1,726

1,474

1,303

1,203

The fair value of stock options granted during the years ended March 31, 2013 and 2012 were valuated by using the Black Scholes option pricing
model with the following assumptions:

Volatility
Expected remaining period
Expected dividend
Risk free interest rate

The sixth sharesubscription
rights

The seventh sharesubscription
rights35.063%10 years¥ 40
1.055%

35.560%10 years¥ 40
0.867%The expected remaining period for stock options is assumed to be the mid-point of the exercise period.
LINTEC ANNUAL REPORT 201341

Financial Section

16. Income Taxes
1. The Company and its consolidated subsidiaries are subject to a number of taxes based on income which, in the aggregate, resulted in a statutory
tax rate of approximately 38.01% and 40.69% for the years ended March 31, 2013 and 2012, respectively. Income taxes of the foreign consolidated
subsidiaries are based generally on-the tax rates applicable in their countries of incorporation. The effective tax rates reflected in the consolidated
statements of income for the years ended March 31, 2013 and 2012 differ from the statutory tax rate for the following reasons:2013
38.01%

2012
40.69%

0.81(9.32)
0.50(7.59)(3.53)
0.60
9.69
—
0.01
29.18%

0.73(7.54)
0.40(7.55)(3.32)(2.10)
7.83
5.42
0.39
34.95%

Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

775
144
122
5,014
585
343
155
236
790
8,166
(178)
7,987

¥ 786
93
193
4,984
561
267
139
213
569
7,810
(176)
7,634

$ 8,242
1,534
1,299
53,321
6,220
3,654
1,648
2,509
8,401
86,833(1,900)84,933

(165)
(104)
(472)
(340)
(1,081)¥ 6,906

(169)
(65)
(470)
(259)
(965)
¥6,669(1,755)(1,107)(5,022)(3,616)(11,501)$ 73,431

ASSETS
Statutory tax rate
Effect of:Permanently non-deductible expenses for income tax purposes such as entertainment expenses
Permanently non-taxable income for income tax purposes such as dividend income
Municipal Tax
The difference of tax rates applied to foreign subsidiaries
Tax deduction in accordance with special tax measures
Decrease of valuation allowance for such as net operating loss carryforward
Consolidating adjustment of dividend income from consolidated subsidiaries
Effect of revised corporate tax rate
Other, net
Effective tax rate

2. The significant components of deferred tax assets and liabilities as of March 31, 2013 and 2012 were as follows:

ASSETS
Deferred tax assets:
Accrued bonuses
Accrued enterprise taxes
Operating loss carryforwards
Accrued pension costs
Research and development cost
Loss on valuation of inventories
Allowance for doubtful accounts
Unrealized gain
Other
Gross deferred tax assets
Valuation allowance
Deferred tax liabilities:
Revaluation of fixed assets in accordance with special tax measures
Net unrealized holding gain on securities
Depreciation expense of subsidiaries
Other
Net deferred tax assets¥

17. Business Combinations
There is no business combination for the year ended March 31, 2013.
18. Asset Retirement Obligations
There is no asset retirement obligation as of March 31, 2013 and 2012.
19. Rental Property
No specific disclosure for rental property has been made as of March 31, 2013 and 2012 because of its immateriality.
20. Segment Information
1. Overview of reportable segments(1) Decision procedures for reportable segments
The business segments of our group are subject to periodic review, because each of them provides its own financial information separately fromother business units of our group and the board of directors not only makes a decision on allocation of management resources, but also evaluates
the performance of them.

42

LINTEC ANNUAL REPORT 2013

Our group consists of 6 business segments, each of which develops comprehensive strategies and conducts business activities in overseas anddomestic markets.
Based on product manufacturing methods and similarity of the markets where the products are introduced, we aggregate these business segments
into 3 distinguishable units, such as “Printing and Industrial Materials Products,” “Electronic and Optical Products,” and “Paper and Converted
Products,” to include in this report.
(2) Products and services handled in each segment
Products and services handled in each segment were as follows:
Reportable segments

Main products and services

Printing and Industrial Materials
Products

Adhesive papers and films for seals and labels, Label printing machines, Barcode printers, Films for outdoor signs andadvertising, Interior finishing mounting sheets, Window films, PV backsheets, Adhesive products for automobiles,
Industrial-use adhesive tapes, Healthcare-related productsElectronic and Optical Products

Semiconductor-related tapes and equipment, Coated films for multilayer ceramic capacitor production, Optical-related
products

Paper and Converted Products

Color papers for envelopes, Special function papers, Release papers and films, Casting papers for carbon fiber materials,
Casting papers for synthetic leather

2. Method of calculating sales and income (loss), assets, and other items by reportable segment reported
The reported information regarding business segments is processed mostly following the accounting procedures listed in “Significant Accounting
Policies” used as basis for preparing consolidated financial statements.
The profits of the segments reported are based on operating income.
The values for internal sales and transfers conducted between segments are given based on the market price for transactions between consolidated companies, and on the first cost for transactions within the same company.
3. Information on sales and income (loss), assets, and other items by reportable segment for the years ended March 31, 2013 and 2012 are outlined
as follows:
Millions of yen

2013

ASSETS
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total¥82,761¥72,352¥35,730¥190,844

24

19

16,33016,375(16,375)—¥82,785¥72,372¥52,061¥207,219¥(16,375)¥190,844¥ 2,380¥ 3,196¥ 4,980¥ 10,557¥

7¥ 10,564

Depreciation and amortization¥ 3,087¥ 4,308¥ 2,745¥ 10,141¥—¥ 10,141

Amortization of goodwill

¥

¥

¥

¥

¥

—

¥

Adjustments

Consolidation

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income¥—¥190,844

Others
57

—

—

57

57

Thousands of U.S. dollars

2013

ASSETS
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total$879,969$769,299$379,910$2,029,179

262

212

173,639

174,114(174,114)—$880,232$769,511$553,550$2,203,293$(174,114)$2,029,179$ 25,310$ 33,985$ 52,953$ 112,250$79$ 112,329

Depreciation and amortization$ 32,833$ 45,807$ 29,192$ 107,833$—$ 107,833

Amortization of goodwill

$

$

$

$

$

—

$

Adjustments

Consolidation$$2,029,179

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income—

Others
615

—

—

615

615

Notes: (1) Segment income adjustments show elimination of the amount of intra-segments transactions.
(2) Segment income is adjusted to be reported as operating income in the consolidated statements of income.
(3) The amount to be written off as depreciation and amortization of goodwill are allocated among the business segment on the basis of reasonable criteria.
(4) Since companies, ofﬁces, and factories serve as the base for administrative classiﬁcation of segment’s assets, no allocation to the business segment is done.

LINTEC ANNUAL REPORT 201343

Financial Section

Millions of yen

2012

ASSETS
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total¥90,093¥73,874¥36,937¥200,905

50

50

16,28816,389(16,389)—¥90,143¥73,925¥53,225¥217,294¥(16,389)¥200,905¥ 5,213¥ 3,942¥ 4,846¥ 14,002¥(27)¥ 13,975

Depreciation and amortization¥ 3,305¥ 3,978¥ 2,795¥ 10,079¥—¥ 10,079

Amortization of goodwill

¥

¥

¥

¥

¥

—

¥

Adjustments

Consolidation

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income¥—¥200,905

Others
42

—

—

42

42

Notes: (1) Segment income adjustments show elimination of the amount of intra-segments transactions.
(2) Segment income is adjusted to be reported as operating income in the consolidated statements of income.
(3) The amount to be written off as depreciation and amortization of goodwill are allocated among the business segment on the basis of reasonable criteria.
(4) Since companies, ofﬁces, and factories serve as the base for administrative classiﬁcation of segment’s assets, no allocation to the business segment is done.

Related Information
1. Information by product and service
Since the Company and its consolidated subsidiaries disclose the same information in its segment information section, it has been omitted.
2. Information by geographical segment
Millions of yen

Thousands of U.S. dollars

2013

ASSETS
Sales

Japan

Asia

Others

Total

Japan

Asia

OthersTotal¥126,500¥54,953¥9,390¥190,844$1,345,037$584,297$99,844$2,029,179

51,436

11,635

1,843

64,915546,902123,714

19,600690,218

Property, plant and equipment

Notes: Sales information is based on location of customers and it is classiﬁed by country or region.

Millions of yen

ASSETS
Sales

2012
Japan

Asia

OthersTotal¥134,953¥56,352¥9,599¥200,905

51,419

9,202

1,652

62,273

Property, plant and equipment

Notes: Sales information is based on location of customers and it is classiﬁed by country or region.

3. Information by principal customers
Millions of yen

ASSETS
Name of the customer

Related reportable segment

Sumitomo Chemical Company, Limited

Electronic and Optical Products

Thousands of
U.S. dollars

2013

2012
Sales

2013

¥20,638¥26,359$219,447

Information on impairment losses on noncurrent assets by reportable segment
There is no impairment loss on noncurrent assets for the years ended March 31, 2013 and 2012.
Information related to the amount of amortization of goodwill and the unamortized amount of goodwill by reportable segment
Millions of yen

2013

ASSETS

Unamortized amount of goodwill

44

LINTEC ANNUAL REPORT 2013

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥192

Thousands of U.S. dollars

2013

ASSETS

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

$—

$—

$—

$—

$2,048Notes: Since the Company and its consolidated subsidiaries disclose the same information of the amount of amortization of goodwill in its segment information section, it has been omitted.
Since companies, ofﬁces, and factories serve as the base for administrative classiﬁcation of segment’s assets, no allocation to the segment of the enterprise is done.

Millions of yen

2012

ASSETS

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥170

Notes: Since the Company and its consolidated subsidiaries disclose the same information of the amount of amortization of goodwill in its segment information section, it has been omitted.
Since companies, ofﬁces, and factories serve as the base for administrative classiﬁcation of segment’s assets, no allocation to the segment of the enterprise is done.

Information on profit arising from negative goodwill by reportable segment
There is no profit arising from negative goodwill for the years ended March 31, 2013 and 2012.
21. Related Party Transactions
The Company and its consolidated subsidiaries have transactions with NP Trading Co., Ltd., a subsidiary of Nippon Paper Group, for the years ended
March 31, 2013 and 2012. The transactions between the companies for the years were as follows:
Millions of yen

For the years
Sales of fine & specialty paper products and converted products
Purchase of stencil, chemicals and equipment

At year-end

Thousands of
U.S. dollars

2013

2012

2013

¥10,269¥ 10,774$109,191

6,159

5,451

65,490Millions of yen

Thousands of
U.S. dollars

2013

2012

2013

Trade notes and accounts receivable¥4,679¥ 4,681$49,755

Trade notes and accounts payable

2,714

2,056

28,866

5

185

61

Yen

U.S. dollars

Other liabilities

These related party transactions took place on terms similar to those with third parties.
22. Amounts Per Share
The amounts per share of net assets and net income as of and for the years ended March 31, 2013 and 2012 were as follows:

ASSETS

2013

2012

2013

¥1,909.57¥ 1,766.60$20.30Net income (basic)

102.83115.26

1.09

Net income (diluted)

102.74115.18

1.09

Net assets

LINTEC ANNUAL REPORT 201345

Financial Section

The bases for calculation were as follows:(1) Basic and diluted net income per share

ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2012

2013
$81,671

Net income (basic) per share:¥ 7,681¥ 8,648

Amount not attributable to common shareholders

—

—

—

Net income attributable to common shareholders¥ 7,681¥ 8,648$81,671

Weighted-average number of shares issued during the year (thousand)

74,69575,031

74,695¥¥$

Net income

Net income (diluted) per share:
Adjustment of net income related to dilutive securities

—

—

—

Adjustment of dilutive securities (thousand)

65

54

65

[Share subscription rights (thousand)]

[65]

[54]

[65]

Millions of yen

Thousands of
U.S. dollars(2) Net assets per share

ASSETS
Total net assets

2013

2012

2013

¥143,569¥132,847$1,526,526

Amount deducted from total net assets[Share subscription rights][Minority interests]
Net assets attributable to shares of common stock

935

890

9,948

[113]

[94]

[1,206]

[822]

[796]

[8,741]¥142,634¥131,957$1,516,578

74,69474,69574,694

Number of shares of common stock outstanding used in calculation of net assets per share (thousand)

23. Short-Term Borrowings, Long-Term Debt and Other Interest-Bearing Debts
Short-term bank loans are represented generally by 30-day or 90-day notes issued by the Company and its consolidated subsidiaries to banks atannual interest rates from 0.36% to 0.82% at March 31, 2013 and from 0.47% to 0.84% at March 31, 2012.
Short-term borrowings as of March 31, 2013 and 2012 consisted of the following:Thousands of
U.S. dollars

Millions of yen

ASSETS

2013

2012

2013

Short-term bank loans¥1,430¥1,320$15,204

Current portion of long-term debt

—

—

—

¥1,430¥1,320$15,204

Millions of yen

Thousands of
U.S. dollars

Other interest-bearing debts as of March 31, 2013 and 2012 consisted of the following:

ASSETS

2013

2012

2013

Short-term lease obligation

¥212

¥204

$2,258Long-term lease obligation

626

670

6,666

Planned repayment amounts after the balance sheet (March 31, 2013) date for long-term debt and lease obligation are as follows:
Millions of yen

Thousands of U.S. dollars

2013

Lease obligation

Over 1 year
within 2 years

Over 2 years
within 3 years

Over 3 years
within 4 years

Over 4 years
within 5 years

Over 1 year
within 2 years

Over 2 years
within 3 years

Over 3 years
within 4 years

Over 4 years
within 5 years

¥171

¥142

¥119

¥92

$1,820$1,511$1,269$981

24. Subsequent Event
The following distribution of retained earnings was approved at a meeting of the board of directors held on May 9, 2013.
Millions of yen

Thousands of
U.S. dollars¥1,269$13,501ASSETSCash dividends (¥17 per share)46

LINTEC ANNUAL REPORT 20132013

Management’s Report on Internal Control
over Financial Reporting
Basic Framework of Internal Control over Financial Reporting
Akihiko Ouchi, President & Chief Executive Officer of LINTEC Corporation, and Hitoshi Asai, Director, Vice President Executive Officer & Chief Financial
Officer of LINTEC Corporation, are responsible for designing and operating adequate internal control over financial reporting for consolidated financial
statements of LINTEC Corporation and consolidated subsidiaries (the “Company”) in accordance with the basic framework set forth in “Standards andPractice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting” issued by Business Accounting Council.
Internal control achieves its objectives to a reasonable extent given that all individual components of internal control are integrated and function
as a whole. Internal control over financial reporting for consolidated financial statements may not completely prevent or detect misstatements infinancial reporting.
Scope of Assessment, Assessment Date and Assessment Procedure
We assessed the effectiveness of the Company’s internal control over financial reporting for the accompanying consolidated financial statements asof March 31, 2013 in accordance with the standards for assessment of internal control over financial reporting generally accepted in Japan.
For this assessment, we first evaluated the company-level controls which would have a material impact on the reliability of overall financial reportingon a consolidated basis. We then selected the process-level controls to be assessed based on the results of the company-level control assessment.
For the process-level control assessment, we evaluated the effectiveness of internal control by analyzing processes in scope, identifying key controlsthat would have a material impact on the reliability of the financial reporting, and assessing the design and operation of such key controls.
We determined the scope of assessment by selecting consolidated subsidiaries based on their materiality of impact on the reliability of financial
reporting. We determined their materiality of impact by considering both quantitative and qualitative aspects. The scope of our process-level control
assessment was determined based on the results of our assessment of company-level controls, which included its 13 consolidated subsidiaries.
We excluded 12 consolidated subsidiaries from the scope of the company-level control assessment since their quantitative and qualitative impacts
were deemed insignificant.
For the purpose of determining the scope of process-level controls assessment, we selected 1 consolidated subsidiary as “Significant Business
Locations,” which contributed approximately two thirds of the Company’s net sales on a consolidated basis for the fiscal year ended March 31, 2012.
For the Significant Business Locations, we primarily included business processes related to sales, accounts receivable, and inventory in the scopeof assessment as the aforementioned accounts were closely associated with the Company’s business objectives. In addition, we included certain
business processes in the scope of assessment not only from “Significant Business Locations” but also from all subsidiaries and affiliates,
which were related to significant accounts involving estimates and management’s judgment or include high-risk operations and/or transactions,as “business processes with a material impact on financial reporting.”
Assessment Result
Based on the results of our assessment with the above mentioned scope, date and procedures, we concluded that Company’s internal control overfinancial reporting for the accompanying consolidated financial statements as of March 31, 2013 was effective.

LINTEC ANNUAL REPORT 201347

Financial Section

Report of Independent Auditors

48

LINTEC ANNUAL REPORT 2013

LINTEC ANNUAL REPORT 201349