THE BASE THAT SUPPORTS GROWTH

ESG
Initiatives

To remain a good corporate citizen and a manufacturer that is highly regarded
and trusted by all stakeholders, the LINTEC Group positions corporate social
responsibility (CSR) at the core of business management. This section focuseson the Group’s initiatives from the viewpoint of environmental, social, andgovernance (ESG) factors—which are essential for realizing a sustainable
society and enhancing corporate value.

Materiality (Important Issues)
The LINTEC Group identified its materiality with a view tofurther advancing CSR activities and meeting the expectations of stakeholders. We then established key performance indicators, which we began using in earnest fromthe fiscal year ended March 31, 2017.

Establishment of the SDGs Committee
Aiming to incorporate Sustainable Development Goals(SDGs) into business management and address a rangeof social issues through mainstay operations, inFebruary 2018 we launched the SDGs Committee,
comprising members from departments across ourorganization. From among the 17 goals, the LINTECGroup has identified those that are highly relevant to ourmateriality and has selected in-house products andtechnologies that promise to contribute significantly toachieving these SDGs. We are moving forward to develop
businesses based on these products and technologies.

32

LINTEC ANNUAL REPORT 2018

Note: Organizations covered in Results: [A] LINTEC; [B] LINTEC Group; [C] LINTEC, TOKYO LINTEC KAKO INC.; [D] LINTEC Head Office, 10 production sites, Research Center;[E] LINTEC production sites (excluding Ina Technology Center), Research Center
Materiality

GovernanceOperating global
governance

KPIs / Results

Enhance global
governance(1) U se of consultation contact points in and outside Japan:
6 cases [B](2) Results of audits by the internal audit division according
to local laws and regulations and internal standards:
No serious findings [B]Procure materials that will Volume of organic solvents used:
help to reduce environmen- 21,500 t [A]tal impact based on the
LINTEC Procurement
PolicyReducing atmosphericemissions

Reduce emissions into theatmosphere based on our
mid-term environmental
target(1) CO2 emissions from business activities in Japan:
185,700 t [C](2) Volatile Organic Compounds (VOCs) emissions frombusiness activities in Japan:
967.4 t [E]

Making environmental
contributions throughproducts and services

Develop and spread environmentally friendly products through LCA*1

Number of environmentally friendly products developed:
15 products [A]Ensuring environmental Ensure and manage environmental compliancecomplianceusing the environmental
management system

Society

Number of violations of environmental laws and regulations:
0 violations [D]Conduct activities to ensure (1) Number of occupational accidents and accidents
occupational safety accordresulting in absence from work:
ing to the occupational
2 accidents [C]safety and health manage- (2) Working hours with no occupational accidents:
ment system
1.5 million hours at Mishima Plant and Kumagaya Plant [C]Achieving workplace
diversity

Respect the diversity of
employees and provide
rewarding workplaces(1) R atio of female managers:
12% [B](2) R eturn to work after taking time off for childcare leave:
100% [A]Improving employee
satisfaction

Build working environments where employees
feel motivated to work

Turnover in three years of employees hired as new graduates:
6.8% [A]Conducting humanrights due diligence*2

Respect human rights and Number of responses to supplier survey:
determine risks throughout 114 companies [A]the supply chain

Ensuring social
compliance

Instill and ensure
Groupwide compliance

Response rate with survey to identify risks:
97.8% [B]

Ensuring productcompliance

Use the quality management system to eliminate
and prevent accidents

Number of serious product accidents reported:
0 accidents [C]ESG

Ensuring occupationalsafety and health

STRATEGY

Labor
practices

SDGs

OVERVIEW

Environment Effectively using raw
materials

Specific actions

Number of exhibitions participated in as an exhibitor in
and outside Japan:
45 times [A]Achieving harmonious
co-existence with local
communities

Introduce social contribution activities for local
communities as a good
corporate citizen(1) Total number of participants on plant tours:
717 persons [C](2) Implementation of social contribution activities:
Invited people with disabilities who live in Itabashi-ku,
Tokyo to professional baseball games, etc. [B]Conduct R&D for products
intended for local procurement and for solving social
issuesDevelopment of a system for registering local raw
materials at sites outside Japan:
Search system for global raw material information management under development [B]Contribution Developing businessto business models for local production & sales inemerging countries

Entering new businessfieldsNumber of patent applications:412 applications [A]FINANCIAL INFORMATION

Making contributions to Publicize the effects ofenvironmentally friendly
sustainableproducts to stakeholders
consumption

Under review*1 LCA (Life Cycle Assessment): A method for comprehensively assessing effects on the environment by calculating items such as the amount of energy and water input, theamount of raw materials used, and the amount of CO2 and hazardous chemical substances emitted throughout a product’s lifecycle.
*2 Human rights due diligence: A process exercised by an organization not only to comply with laws but also to address and reduce the risk of human rights violations(ISO 26000 6.3.3. Human Rights Issue 1).

LINTEC ANNUAL REPORT 201833

THE BASE THAT SUPPORTS GROWTH

Environment
As a leading corporate group in the fields of adhesive products and specialty papers, the LINTEC Group uses large amountsof raw materials, fossil fuels, water, and other resources in the manufacture of products. Going forward, we will continue toreduce emissions of environmentally hazardous substances and waste as well as cut back on usage of energy and water withthe aim of contributing to the realization of a sustainable society.
(Fiscal year ended March 31, 2018)

INPUT
Pulp

115,000 tons

Paper

21,300 tons

Release agents

2,300 tons
9,400 tons

Raw material
procurement

162,000 MWh

Waste

R&D

36,000 MWh(Crude oil equivalent 9,000 kl)

Water

4,190 tons
500 tons• Incineration• Final landfill disposal

185,700 tons
6.4 tons
NOx
65.1 tons
Soot and dust
1.2 tons
CO2

SOx

Emissions
into theatmosphere

Manufacturing

Substances subject to
the PRTR system*1
Release into
water bodies

Sales

Effluent(Kumagaya Plant,
Mishima Plant)

500 tons

6,637,000 m

3

Breakdown of CO2 emissions

Scope 1*2
Direct emissions• Bunker oil• Utility gas• LPG etc.

Self-generated electricity

11,640 tons

• Effective external utilization 6,950 tons

10,520 tons
7,730 tons

(Crude oil equivalent 41,000 kl)

Energy29,890 tons

Sale of valuable materials

Fuel (crude oil equivalent)

51,000 kl

106,300 tons
1,200 tons

Effective internal utilization

Mechanical parts, etc.

600 tons

Adhesive
products

69,400 tons
43,900 tons

Waste emitted

35,500 tons

Purchased electricity(release paper, etc.)

Waste
generated

Organic solvents

Other chemicals

Converted
products

Adhesive-related
equipment

33,900 tons

AdhesiveRawmaterials

Specialty
papers

Products

36,500 tons

Films

OUTPUT

Business
Activities of
the LINTEC

Scope 2 *3
Indirect emissions from energy• Purchased electricity

103,600 tons 82,100 tons

(Total volume control 90,600 tons) (Total volume control 97,200 tons)

Industrial-use water

8,263,000 m

3

Total volume control: A calculation method covering Scope 1 and Scope 2
emissions, including those not covered by the Energy Conservation Act.
The calculation included LINTEC Corporation and TOKYO LINTEC KAKO, INC.,
LINTEC SERVICES, INC., PRINTEC, INC., LINTEC CUSTOMER SERVICE, INC.,
and SHONAN LINTEC KAKO, INC.

*1 PRTR system: The Pollutant Release and Transfer Register system that requires companies to estimate the volume of chemical substances they have released and transferred inwaste and report the data to the government*2 Scope 1: Direct CO2 or other greenhouse gas emissions from the consumption of purchased gas and liquid fuels, such as liquid natural gas (LNG), liquid petroleum gas (LPG),
utility gas, kerosene, light oil, and gasoline*3 Scope 2: CO2 or other greenhouse gas emissions generated by other companies in the production of energy, such as electricity and steam, purchased by the reporting company
Notes 1: The numerical data in the environmental report has been compiled from the following organizations: LINTEC Corporation’s Head Office, 10 production sites, and ResearchCenter, and TOKYO LINTEC KAKO, INC.
2: For industrial-use water, although tons were used for initial calculations, figures have been converted into cubic meters in this report.
34

LINTEC ANNUAL REPORT 2018

Environmental Management
We have acquired global integrated certification under international
standard ISO 14001 for a total of 25 sites, including the LINTEC head
office and plants, Research Center, Group company TOKYO LINTEC
KAKO, INC., and overseas Group companies. In March 2018, we

Waste Generated
1,000 tons

35

25

continue to promote the acquisition of global integrated certification

20

by overseas Group companies as we strengthen Companywide

15

engagement in environmental preservation.

10

The LINTEC Group is working toward the realization of a sustainable society with manufacturing that has low environmental
impact. The Company’s CO2 emissions were reduced to 185,700
tons in the fiscal year ended March 31, 2018, from 195,000 tons in

29.1

3.5

3.9

5.9

3.8

1.4
4.9

5.3
1.4
4.6

5.3
1.4
4.5

14.4

13.9

13.3

2014

2015

2016

5
0

28.3

30.2

29.9

4.5

3.9

5.0
1.5
4.8

5.2
1.5
5.1

14.4

14.2

OVERVIEW

completed work to achieve compliance with ISO 14001:2015. We will

Reduction of Environmental Impact

30.1

30

2017
2018
(Fiscal year ended March 31)
SludgeOther

Waste paper
Waste plastic
Waste oilthe previous year. The amount of waste generated in production
decreased from 30,240 tons to 29,890 tons year on year. However,
emissions rate of below of 1.0%, which we had achieved in each of

Water Usage (Kumagaya and Mishima Plants)
1,000 tons

20,000the previous 10 years. In papermaking, the amount of water used
per unit of production improved by 0.8% over that of the previous
year. We are also constantly seeking to reduce the amount ofvolatile organic compounds (VOCs) including organic solvents thatare released into the atmosphere (see below).

Compliance with Environmental Laws, Directives,
and Regulations
The LINTEC Group seeks to be compliant with environmental laws,
directives, and regulations in Japan and overseas and reduce chemi-

100

75

11,88353.9 51.0

10,000

6,427

5,959

51.4
6,014

47.5

47.9
5,993

50

7,361
25

5,000

2001

2014

2015

2016
2017
2018
(Fiscal year ended March 31)0

Water usage
Water usage amount / paper production tonnage (right)

ESG

cal substances that are harmful to the environment. In addition to

m3 / tons

95.3

15,0000

STRATEGY

the final landfill ratio was 1.67%. Thus, we did not realize the zero

responding to restricted substances stipulated by REACH*1 andRoHS,*2 we conduct environmental impact examinations of raw
materials that we purchase and disclose necessary information to

Fiscal Year 2018 Emission and Transfer of Toluene

our customers.

Emission into
the atmosphere:

In the fiscal year ended March 31, 2018, on a non-consolidated basis

482 tons

we reported nine substances under the PRTR system. The total
volume was 7,838 tons, of which 7,752 were toluene, an organic solvent. Toluene emitted into the atmosphere amounted to 482 tons, an

LINTEC plants

increase of 11 tons over that of the previous year, while the quantity
year, at 483 tons.
*1 REACH: EU regulation for the Registration, Evaluation, Authorization andRestriction of Chemicals*2 RoHS: EU directive on the Restriction of the use of certain Hazardous Substancesin electrical and electronic equipment

Toluenehandled:7,752 tons

6,787 tons

Manufacturing
processes for release
papers and adhesive
products(Elimination
rate: 93.4%)

FINANCIAL INFORMATION

transferred (treated as waste) was 16 tons more than in the previous

Quantity
eliminated:

Exhaust-gas
treatment facility

Toluene flow
Quantitytransferred(Treated as waste):

Note: Elimination rate = eliminated amount /(handled amount – transferred amount) ×100

483 tons

LINTEC ANNUAL REPORT 201835

THE BASE THAT SUPPORTS GROWTH

Environment

Green Procurement
The LINTEC Group is committed to procurement that aims to
reduce environmental impact through rigorous chemical substancemanagement for raw materials, parts, and secondary materials.
When procuring a new material or responding to a new regulation,
we ask for suppliers’ understanding in conducting ingredient examinations to monitor for the presence of regulated substances. In thefiscal year ended March 31, 2018, the Company carried out suchexaminations on approximately 5,000 items. Going forward, we willLabel materials that use environmentally friendly
hot-melt adhesives
U.S. subsidiary MACTAC AMERICAS, LLC manufactures theselabel materials. When adhesives that are melted throughheating and then used for coating—known as hot-meltadhesives—are used in coating processes, organic solvents
are not needed. Therefore, hot-melt adhesives have lessenvironmental impact.

continue working with suppliers to engage in proactive environmental preservation activities and undertake stringent chemical substance management.

Environmentally Friendly Products
The LINTEC Group has embraced the rise in environmental awareness of recent years and is developing products to meet a wide
range of environmental needs. Our environmentally friendly product lineup pays heed to reusing, recycling, and energy saving. In
addition, for adhesive products and converted products such as
release papers, we are developing manufacturing processes that
do not use organic solvents.

Window films that curb temperature increases inbuildings and vehicles
Applying these films onto the entire surfaces of building or
vehicle windows significantly cuts thermal energy from sun-

36

Aluminum vapor deposition label materials that use
recycled PET

light, which causes heat.

These label materials use recycled PET film as facestock.

temperatures enhances the

The raw material is used PET bottles, which undergo a recy-

efficiency of air-conditioning

cling process known as mechanical recycling. The resulting

and helps save electricity andmaterial is made into PET film, which is then given a shiny

energy. Unlike curtains or

silver appearance through aluminum vapor deposition pro-

blinds, these films do notcessing. Although composed of more than 80% recycled PET

reduce brightness or impede

resin—one of the highest levels in the world—the facestock

views. Also, they lower ultra-

realizes a premium appearance with a metallic luster as wellviolet light by more than 99%

as physical properties comparable with those of label materi-and prevent shattering if theals that use nonrecycled PET film as facestock.

window glass is broken.

LINTEC ANNUAL REPORT 2018

Curbing increase in insideSociety
In continuing and expanding business activities, creating favorable relationships with all stakeholders is indispensable.
OVERVIEWThe LINTEC Group is advancing initiatives with the aim of establishing employee-friendly workplaces, strengthening
partnerships with customers and suppliers, and providing stable supplies of high-quality products. Further, we are actively
tackling social contribution activities.

Respect for Diversity and Human Rights
The LINTEC Group avoids discriminatory treatment of employees
based on race, creed, gender, education, nationality, religion, orage, thereby respecting diversity. In the areas of recruitment andemployment, the Group complies strictly with labor laws and regulations, including the prohibition of unfair discrimination, child
STRATEGY

labor, and harassment, and endeavors to promote an environment
where all employees can go about their work in a positive andenergized frame of mind. Every year, we conduct a Groupwide
survey of human rights and working conditions. As well as checking

Career development training for female employees

compliance in Japan and overseas, the surveys confirm that companies are respecting basic human rights and providing safe,
healthy workplaces.
We have a helpline through which employees can consult with
the General Affairs & Human Resources Div. or a lawyer if they
have any concerns or have witnessed illegal behavior in the workplace. Access was extended to overseas Group companies in 2015
and an English-language helpline is also available.

Zero Accident Culture
Safety is the top priority in LINTEC Group plants, which are operated with the aim of preempting injuries to personnel. Our practices include risk assessment, which enables us to put safety
standards in place; hazard prediction exercises; and the rigorous
pursuit of our 5S* activities through various types of safety patrol.
Safety and hygiene committees hold monthly meetings at all our

Employee Education
LINTEC has a Companywide training system based on rank,
as human resource education programs tailored to years ofcontinuous service and career. To foster a globally oriented
workforce and advance the careers of female employees, we also
run theme-specific group and correspondence courses to promote
objectives such as second-language acquisition and encouraging

ESG

sites in Japan and overseas to enable us to ascertain progress inour safety activities and share information. In addition, since 2017
we have held a safety conference for domestic plant safety officers
for the exchange of information about each plant’s initiatives. We
will continue activities on multiple fronts in accordance with our
zero accident culture.
*5S: S eiri (organizing), Seiton (clearing up), Seiso (cleaning), Seiketsu (cleanliness),
and Shitsuke (discipline) in Japanesewomen to take on a more active role in the workplace. We spend
FINANCIAL INFORMATION

approximately ¥30 million on employee training and development
annually. In other initiatives, the Company’s intranet offers e-learning
programs to increase all our employees’ understanding of topics
such as the environment, product quality, the business continuity
management system, compliance, and CSR.

Safety inspection tour by the President

LINTEC ANNUAL REPORT 201837

THE BASE THAT SUPPORTS GROWTH

SocietyThorough Quality Management

Fair Transactions

The LINTEC Group has acquired ISO 9001:2015 certification, the

LINTEC has a basic policy for fair and transparent transactions

international standard for quality management systems, for 19 sites

based on the principle of free competition among suppliers, andin Japan and overseas. We are working to further reinforce ourour procurement activities comply with all relevant laws and regu-

quality assurance system by obtaining ISO 9001:2015 for otherlations and social norms. For major suppliers, we require evalua-departments and acquiring integrated certification for related sites.

tions through self-audit check sheets for assessing suppliers with

When comparing major quality incidents by year, the fiscal year ended

respect to quality, chemical substance management, administra-

March 31, 2004, is set as 100 in an index of major quality incidents. Wetion and services, and CSR. We periodically review our purchasing

reduced the level of the index to 10 in the fiscal year ended March 31,

processes while maintaining and strengthening partnerships.

2018. We construct and implement management systems that enable
us to take swift action if a quality incident should occur, collecting
information, analyzing causes, and taking steps to prevent recurrence.

Social Contribution Activities

This framework is in place in Japan and overseas.

Recognizing that it is a member of society and that society andlocal communities support it, the LINTEC Group returns some ofPercentage of Quality Incidents versus FY2004

the profits from corporate activities to society through various%

social contribution activities.

100

100

LINTEC conducts a range of support activities on an annual basis
for people with disabilities living in Itabashi-ku, Tokyo, where the80Company’s head office is located. In October 2017, we hosted a jazzconcert with the aim of deepening interactions among attendees

60

through music, regardless of whether they did or did not have a40

disability. An audience of approximately 500 people, comprising
18

20
0

2004

2014

people with disabilities living in Itabashi and other local area resi-

14

12

2015

2016
2017
2018
(Fiscal year ended March 31)

13

10

dents, enjoyed the concert. In May 2018, we held our 12th professional baseball-viewing event, inviting a record 144 people, including
people with disabilities and their helpers, to Tokyo Dome. We alsoorganize blood drives and support disaster area restoration efforts.
As well as head office activities, LINTEC engages in various

Efforts toward Business Continuation
The Group is building a system that enables business operations tocontinue or restart quickly if struck by a disaster. All the Company’s
locations in Japan, subsidiaries TOKYO LINTEC KAKO, INC., and
LINTEC SPECIALITY FILMS (TAIWAN), INC., have obtained certification under ISO 22301:2012, the international standard for business
continuity management systems. In relation to these systems, studysocial contribution activities rooted in local communities, such as
cleaning up around each work site, participating in and supporting
local festivals, and conducting plant tours. Overseas, our subsidiaries plant trees, give donations to those in need of assistance, andprovide volunteers for a range of activities. The LINTEC Group will
coexist with society by continuing to engage in social contribution
activities as a good corporate citizen.
Concert for members of
the local community

meetings and drills are held at all sites so that, in the event of anatural disaster or accident that disrupts business operations, we
can ensure the safety of our employees and then recommence thesupply of products promptly, minimizing impact on our customers
and other stakeholders.
We also evaluate the business continuity capabilities of suppliersof raw materials that are critical in securing stable supplies of our
products. Additionally, we request that these suppliers introduce abusiness continuity plan and establish a system for implementing it
on an organization-wide basis.
Employees of overseas
subsidiaries planting
mangrove trees

38

LINTEC ANNUAL REPORT 2018

The LINTEC Group’s Work-Style Reform
Our medium-term business plan, LIP-2019, sets out promotion of work-style reforms, fostering of diverse humanresources and encouragement of their active participation in the workplace as a key initiative. Accordingly, we are
creating workplaces that are more amenable to all employees’ needs and enhancing labor productivity.

Initiatives for Diversity

Realization of Work–Life Balance
every employee to work with vigor and enthusiasm. As part of thesein the workplace, we are changing their mind-sets as well as those ofefforts, we are ensuring that employees, including managers, avoid

all employees through a range of training programs for female

working long hours. Further, in the fiscal year ended March 31,

employees and managers. Also, we have introduced a “job return”

2016, to encourage employees to take paid leave we introduced aprogram for rehiring people who can readily contribute to operations

planned vacation system that requires employees to designate inafter resigning for personal reasons such as childbirth, nursing careadvance certain days that they will take as paid leave. As a result,of a family member, or a spouse’s transfer to a different location.

employees took 64% of their paid leave in the fiscal year ended

Further, we have established a system that reemploys employees andMarch 31, 2018, compared with 51% in the fiscal year ended Marchenables them to work beyond the mandatory retirement age of 60 and

31, 2015, before the system’s introduction. Further, in 2016 weup to the age of 65 based on one-year contracts. Also, we are consid-

increased the number of days available for family care leave andering raising the retirement age to 65. Other initiatives include

lengthened the period for which employees can work shorter hours

increasing the percentage of people with disabilities that we employ

due to family care commitments. Also, we increased the age range

through measures such as improvements to on-site facilities asof children in relation to whom employees are eligible to workrequired. In the fiscal year ended March 31, 2018, people with disabili-

fewer hours due to childcare commitments. In the current fiscal

ties accounted for 2.19% of LINTEC’s employees, compared with theyear, we have increased the salaries of junior employees and retire-

legally mandated 2.0%.

ment benefits and revised employment regulations to increase theaccumulation of unused paid leave days and relax the requirements

Employment Rate for Persons with Disabilities%

for taking them.

STRATEGY

As part of efforts for encouraging women to take on a more active role

OVERVIEWAt the LINTEC, we are establishing conditions and systems to allow

2.19

2.2

2.06
1.94

2.0
1.8

1.79

1.78

2014

2015

1.6

Percentage of Paid Leave Taken
%

80

50.1

51.1

2014

2015

61.6

64.0

40

20

0

2016

2017
2018
(Fiscal year ended March 31)

In 2013, we established the Women’s Active Participation
Promotion Committee as a Companywide cross-sectionalorganization tasked with advancing the careers of women andhelping them balance work and family commitments. In 2016,
we changed its name to the Diversity Committee. Aiming tohelp employees balance work and family care commitments,
this committee has created a family care support handbook
and conducts related training for
respective workplaces’ managers incollaboration with the Human Resources
Dept. Through such initiatives as supporting employees suffering from injuries
or illnesses, the committee will consider
and implement a variety of measures
aimed at career advancement and creation of employee-friendly workplaces for Our family care support
a wider, more diverse range of employees. handbook

LINTEC ANNUAL REPORT 2018

FINANCIAL INFORMATION

61.1

2017
2018
(Fiscal year ended March 31)

Diversity Committee

Training to help employees balance work and familycare commitments

60

2016

ESG

0

39

THE BASE THAT SUPPORTS GROWTH

Governance
Basic Philosophy

Primarily comprising executive officers (including directors serving

The Group believes that the fundamentals of corporate governanceconcurrently) responsible for the execution of business, manage-

are to achieve thorough legal compliance, to increase management

ment meetings are also held once a month and endeavor totransparency and promote corporate ethics, and to make prompt

streamline business operations through the sharing of information

decisions and effectively execute operations. By enhancing andamong all business divisions. P.42 Diagram A

reinforcing corporate governance, we aim to further increase our

The Audit & Supervisory Committee meets once a month andcorporate value and joint profits with shareholders.

conducts monitoring audits that focus on matters reported fromthe Audit Office, which is the Company’s internal audit division.

Corporate Governance System

In addition to performing audits covering the appropriateness and1. Corporate Governance System

legality of the execution of directors’ duties, each and every Audit &The Company has selected the Company with Audit & Supervisory

Supervisory Committee member also plays a role in supervising

Committee system described in the Companies Act of Japan for its

the execution of the directors’ duties through the exercise of theorganizational structure. The Company has placed directors thatvoting rights on the Board of Directors. P.42 Diagram B

are also Audit & Supervisory Committee members with voting
rights on its Board of Directors in order to strengthen the Board’s• Evaluation of Board of Directors’ effectivenesssupervisory function, with a view to stepping up corporate gover-

In April 2018, the Company conducted an evaluation of the effec-

nance and to streamlining management even further. The Company

tiveness of the Board of Directors. Details are as follows.

has appointed 15 directors, of whom four are Audit & Supervisory

Overview

Committee members and four are outside directors.

Based on the principles of Japan’s Corporate Governance Code, all

Held once a month to make important decisions with regard to

directors filled out a survey on matters such as the structure andmanagement, Board of Directors’ meetings are also held on an adoperation of the Board of Directors, which included some open-

hoc basis as necessary to strive for rapid decision making.

ended questions. The results of these surveys were analyzed by

Corporate Governance System
Organizational Structure
Number of Directors(Number of Outside Directors)
Number of Audit & Supervisory Committee
Members (Number of Outside Directors)

Number of Independent Officers

2Company with Audit & Supervisory
Committee

Directors’ Term of Office

One year

Board of Directors’ Meetings in FY2018

Number of meetings: 14

15 (4)

Adoption of an Executive Officer System

Yes

Takeover Defense Measures

None

Accounting Auditors

Ernst & Young ShinNihon LLC

4 (3)History of Corporate Governance
1990

2004

2007

2008

2011

Formed the LINTEC Corporation as a Company with Audit & Supervisory Board

2015

2016

2018

Transitioned organizational structure to a
Company with Audit & Supervisory Committee

Introduced an executive officer system

Appointed outside director

Increased the number of outside directors(from one to two)

Increased the number of outside
directors (from two to four)
Implemented Board of
Directors’ effectivenessevaluation

Introduced Takeover Defense Measures

40

LINTEC ANNUAL REPORT 2018

Abolished Takeover
Defense Measures

of Conduct was based. To ensure the effectiveness of the complianceoutside directors, who are independent officers of the Company.

system with regard to laws and regulations as well as the Articles ofIn this final evaluation, outside directors stated that the survey

Incorporation, the Audit Office—an organization under the president’s

questions and method were rational overall considering efforts todirect supervision—investigates and verifies, by means of audits

revise survey content each year and other matters. Their evaluation

based on the Internal Audit Regulations, whether all of thealso confirmed that the approach of using a PDCA cycle* in which

Company’s operations are being appropriately and reasonably imple-

measures for the following year are examined based on survey

mented and pursuant to laws, the Articles of Incorporation, andresponses was a reliable means of ensuring the effectiveness of theinternal rules and regulations. The results of those audits are

Board of Directors. Further, although replies from respective

regularly reported to the Board of Directors.

OVERVIEW

representative directors, and a final evaluation was received fromdirectors provided positive evaluations of the Board of Directors,
there were recommendations and observations, including thoseregarding points for future improvement. Outside directors stated• System for storing and managing information related to the­execution of directors’ duties

that such recommendations and observations provided a reference

Documents are stored and managed in accordance with rulesin pursuing the Board of Directors’ ideal state and requested thedetermined for each document type, including those documents

consideration of measures in light of the said recommendations andstipulated by law.

observations going forward. Based on this feedback, we will takesteps to develop an environment that facilitates improved Board of* PDCA cycle: This approach continuously improves processes through the repetition of acycle of activities comprising four phases: namely plan, do, check, and act.

• Regulations and other systems pertaining to management of
STRATEGY

Directors’ effectiveness.

risks of loss
By promoting the issue of manuals by division and facilitating theirthorough use, the Company makes preemptive efforts to reduce or
avoid risk. In the case of specific risks, the Company promotes• Director training policies

reviews of and improvements to response measures as risks arise.

(1) New director training

For emergency situations, such as the occurrence of a disaster, theAfter assuming their position, new directors are provided training

Company has established the Companywide Crisis Managementfrom outside institutions to endow them with the legal, accounting,regulations, in addition to a BCMS, which is based on these regula-and other knowledge necessary to management.

tions. These are separate from risk management initiatives con-(2) Regular training

ducted through normal operations, and we strive to ensure that a

Once or twice a year, directors undergo training on contemporarycrisis management organization can be quickly established in theissues from lawyers or other outside lecturers. These training

event of an emergency.

is crucial to members of the Board of Directors.
(3) Special training

ESG

sessions serve as opportunities to hone the sense of judgment that
• System to ensure that the execution of the duties of directors is
efficiently conducted

When necessary, directors participate in seminars at theIn addition to setting out the duties for which directors are

Company’s expense to acquire the specialized insight required toresponsible for and that correspond to the allocation of roles of eachperform their duties.

organization, based on the Regulations on the Division of Duties, theCompany works to separate management from execution andaccelerate decision making by the introduction of an executive officer

The following is an explanation of the internal control system to ensure

system. Moreover, the Company reviews internal organizations asthat the execution of directors’ duties is in compliance with laws andnecessary to be able to respond to environmental changes and works

regulations as well as the Articles of Incorporation, and the system

to maintain efficiency in the execution of the duties of directors by

to ensure the appropriateness of the execution of other business.

such means as the setting up of cross-organizational committees on

FINANCIAL INFORMATION

2. Internal Control Systeman as-required basis.
• System to ensure that the execution of the duties of directors andemployees is in compliance with laws and regulations as well as
the Articles of Incorporation• System to ensure the appropriateness of business in the corporate group comprising the Company and its subsidiaries

To ensure that the execution of the duties of directors and employees

Based on the Affiliate Company Operational Regulations, theis in compliance with laws and regulations as well as the Articles ofCompany works to maintain the appropriateness of its operations

Incorporation and that a sense of ethics is maintained, the Company

as a group entity by having each of its principal business divisions

established its motto of “Sincerity and Creativity,” on which its Codecontrol the operations of Group companies. Based on the Affiliate
LINTEC ANNUAL REPORT 201841

THE BASE THAT SUPPORTS GROWTH

Governance

Company Operational Regulations, the Company works to maintain

instructions and orders received from Audit & Supervisorya system for receiving corporate performance, risk, and otherCommittee members, with the exception of those instructions andimportant reports from each Group company regularly or on anorders that are not necessary for the duties of Audit & Supervisory

as-required basis. Providing business management and support

Committee members, it is assumed that Audit & Supervisoryfrom the appropriate division as necessary, the Company promotes

Committee secretariat staff do not receive instructions and orders

management efficiency in each company. To ensure that Group

from directors or other employees.

companies are in compliance with laws and regulations as well as
the Articles of Incorporation, audits are conducted by eachcompany’s internal audit system and by the Company’s Audit Office.

• System relating to the reporting of cases to the Audit & Supervisory
Committee and system for ensuring that the submitting of suchreports is not seen as reason enough for the person who submitted• Matters relating to the employees who are tasked to assist thethem to be subjected to disadvantageous treatment

duties of the Audit & Supervisory Committee, matters relating toWith regard to cases that are likely to significantly damage thethe independence of said employees from directors, and matters

Company or a Group company, such as violations of laws or regula-relating to ensuring the effectiveness of Audit & Supervisorytions, all Group directors and employees are to report such cases

Committee instructions with respect to said employees

to the Company’s Audit & Supervisory Committee. In addition, it isTo further raise the effectiveness of Audit & Supervisory Committee

deemed that the Audit & Supervisory Committee will be able toaudits and maintain a system to carry out audit duties more

directly demand business-related reports for all Group directors

smoothly, the Company has established the Audit & Supervisoryand employees. Under the Company’s Internal Reporting System

Committee secretariat, which supports and takes on Audit &Operation Regulations and its Global Internal Reporting System

Supervisory Committee duties. It is assumed that the Audit &Regulations, the Company has established a helpline that can be

Supervisory Committee’s consent has to be obtained for transfers

used by all Group directors and employees and endeavors to main-of personnel to the Audit & Supervisory Committee secretariat

tain a system to ensure that the submitting of such reports is not

staff, personnel evaluations, and disciplinary action. The instruc-seen as reason enough for the person who submitted said notifica-

tions and orders given to Audit & Supervisory Committee secre-tion or report to be subjected to disadvantageous treatment. In thetariat staff are also deemed to be given by directors serving as

event of an internal notification via the helpline, this will be

Audit & Supervisory Committee members. With regard to said

reported to the Audit & Supervisory Committee.

Corporate Governance Organization Chart
General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

B

Management decisions
Informing / ReportingA

Board of Directors(Directors)

Auditing /Supervision

Representative Directors

Appointment /Dismissal

Audit &
Supervisory
Committee(Directors
serving as Audit &Supervisory
Committee
members)

Cooperation

Management Meetings(Executive Officers)

Operational Execution Divisions
CSR Management
OfficePromotion• Administrative Division• Marketing Division• Production Division• Technical Division•Domestic and Overseas Subsidiaries
Operational execution

42

LINTEC ANNUAL REPORT 2018

Cooperation

Informing

C
Internal
Auditing

Audit Office

Independent
AuditorAccount
Auditing /Internal
ControlAuditing• Matters concerning policy relating to the handling of costs or

4. Risk Management Systemliabilities arising from the execution of duties of Audit &The Company has established the Companywide Crisis Management

Supervisory Committee members

Regulations as well as a risk management system for minimizing
the possible impact and damage to corporate value if a major

Company for the prepayment or redemption of expenses incurred

problem arises. It has also implemented and oversees thefor the execution of their duties, said costs or liabilities will be

Information Security Management Rules and the Trade Secretpromptly handled following discussions in the department respon-Management Rules for the preservation and management of infor-

sible, with the exception of cases in which said costs have beenmation. There are also Companywide risk assessments centeredrecognized as being not necessary for the execution of said Audit &on the CSR Management Office.

OVERVIEW

When an Audit & Supervisory Committee member invoices theSupervisory Committee member’s duties. In addition, should Audit& Supervisory Committee members deem that independent out-

5. Limited Liability Contracts

side experts (such as lawyers, certified public accountants, etc.) are

In accordance with Article 427, Paragraph 1 of the Companies Act,

necessary as advisers to the Audit & Supervisory Committee, thethe Company has entered into a contract with each of its non-Company will bear those costs, with the exception of cases in which

executive directors—outside directors Kazumori Fukushima, Toru

said costs have been recognized as being not necessary for the

Nozawa, Satoshi Ohoka, and Kanako Osawa—that limits liability forexecution of said Audit & Supervisory Committee’s duties.

compensation for damages under Article 423, Paragraph 1 of theCompanies Act. Based on this contract, liability for compensation

Committee carries out audits effectively
With a view to ensuring a system so that Company information
reaches the Audit & Supervisory Committee unhindered, theCompany works to maintain an environment in which information is

STRATEGY• Other system for ensuring that the Audit & Supervisoryfor damages is limited to ¥10 million or the minimum liability
amount stipulated by law, whichever is greater.

Internal Audits and Audit & Supervisory
Committee Audits

received not only from directors (excluding directors serving as

1. Internal Audits

Audit & Supervisory Committee members) and from employees but

The Audit Office regularly implements internal audits of divisions,also from independent auditors, corporate lawyers, tax accoun-

work sites, plants, and affiliated subsidiaries in addition to verifying

tants, and other specialists. The Company has a system in place tothat operational execution processes and results comply with the law

ensure regular meetings with representative directors and venues

and internal regulations. The status of these internal audits isfor important discussions, such as management and strategy

reported when necessary to the Audit & Supervisory Committee, andmeetings, for Audit & Supervisory Committee members to attend

opinions are exchanged on the results of the audits. P.42 Diagram C
ESG

and state opinions.

2. Audit & Supervisory Committee Audits
3. Basic Policies and Systems for Preventing
Relationships with Antisocial Forces

The Company’s Audit & Supervisory Committee comprises four

The Company stands in firm opposition to all antisocial forces andwhom three are outside directors. While utilizing the internal con-organizations that threaten to disrupt the order and safety of civil

trol system, the Audit & Supervisory Committee cooperates withsociety while practicing a strict policy of non-association with such

the Audit Office and the independent auditor, receives the neces-

entities. We have made this commitment clearly apparent in thesary reports, and conducts audits of the directors’ business execu-

LINTEC Compliance Guidelines and are taking steps to ensure thor-

tion through such methods as exchanges of opinions. Each Audit &ough awareness with this regard among all directors and employees.

Supervisory Committee member attends management and otherdirectors serving as Audit & Supervisory Committee members, of

meetings, obtains the information needed for the audits, attends
Board of Directors’ meetings as a director, and supervises thethe police, centers for the removal of criminal organizations, law-directors in the execution of their duties by stating opinions andyers, and other specialists to combat such requests. Should we be

participating in resolutions through their voting rights.

approached by antisocial forces or organizations, we will closely

Audit & Supervisory Committee members Hiroshi Okada andcoordinate with such institutions, organizations, lawyers, or other

Toru Nozawa have considerable knowledge of finance and account-

specialists to ­furnish a quick, organization-wide response.

ing, having gained many years of experience in their respective

FINANCIAL INFORMATION

We reject any illegitimate requests from antisocial forces andorganizations and maintain close collaborative relationships withroles at the Company’s administrative and audit divisions andNippon Paper Industries Co., Ltd.’s administrative division.

LINTEC ANNUAL REPORT 201843

THE BASE THAT SUPPORTS GROWTH

GovernanceOutside Directors
1. Outside Directors
The Company has selected Kazumori Fukushima, Toru Nozawa, Satoshi Ohoka, and Kanako Osawa as its four outside directors. With the
exception of Kazumori Fukushima, the other three are also Audit & Supervisory Committee members.
Name

Human, Financial, and Business Relationships and Other Shared Interests
between the Outside Directors and the Company

Reason for Appointment

There are no particular shared interests between the Company and
Kazumori
Kazumori Fukushima, but Nippon Paper Industries Co., Ltd., where he
Fukushima serves as a managing executive officer, is a major trading partner of theBy utilizing knowledge and experience from his directorship experienceat Nippon Paper Industries Co., Ltd., and his many years of businessexperience in this company’s production and sales divisions, Kazumori
Fukushima is able to strengthen the Company’s Board of Directors’supervisory function. Therefore, he has been appointed as an outside
director.

Toru
NozawaThere are no particular shared interests between the Company and Toru
Nozawa, but Nippon Paper Industries Co., Ltd., where he serves as adirector and a management executive officer, is a major trading partnerof the Company, which purchased ¥2,197 million worth of raw materials
from and sold ¥21 million worth of products to Nippon Paper (bothresults from the fiscal year ended March 31, 2018). In addition, Nippon
Paper is a major shareholder in the Company; its holding amounted to
21,737,792 shares (30.12% of the total number of Company shares
outstanding excluding treasury stock) on March 31, 2018.

By utilizing knowledge and experience from his directorship experience at
Nippon Paper Industries Co., Ltd., and his many years of business experience in this company’s administrative divisions, Toru Nozawa is able tostrengthen the audit and supervisory functions of the Company’s Board of
Directors. Therefore, he has been appointed as a director serving as an
Audit & Supervisory Committee member.

Satoshi
Ohoka

There are no particular shared interests between the Company andSatoshi Ohoka.

By utilizing his long years of policy-based finance experience, his richinternational experience, his specialist academic experience, and his
knowledge and experience gained as an outside director in industries
different to that of the Company, Satoshi Ohoka is able to strengthen theaudit and supervisory functions of the Company’s Board of Directors.
Therefore, he has been appointed as a director serving as an Audit &Supervisory Committee member. He is also designated as an independent
director based on the criteria stipulated by Tokyo Stock Exchange, Inc. (TSE).

KanakoOsawa

There are no particular shared interests between the Company and
Kanako Osawa.

By utilizing her specialist expertise and extensive knowledge gained as an
attorney, along with the knowledge and experience gained through her
career in corporate legal affairs both at home and abroad, Kanako Osawa
is able to strengthen the audit and supervisory functions of the Company’s
Board of Directors. Therefore, she has been appointed as a director
serving as an Audit & Supervisory Committee member. She is also designated as an independent director based on the criteria stipulated by TSE.

Company, which purchased ¥2,197 million worth of raw materials fromand sold ¥21 million worth of products to Nippon Paper (both resultsfrom the fiscal year ended March 31, 2018). In addition, Nippon Paper isa major shareholder in the Company; its holding amounted to
21,737,792 shares (30.12% of the total number of Company shares
outstanding excluding treasury stock) on March 31, 2018.

2. The Company’s Basic Way of Thinking with Regard to
the Independence of Outside Directors

Remuneration of Corporate Officers

1. Total Remuneration by Corporate Officer TypeThe Company does not have its own set standards and policies withregard to the independence of outside directors and refers insteadto the standards stipulated by TSE. Since appointment is based ona request from the Company, we recognize that independence frommanagement is to be ensured.

44

Corporate officer type

Total
remuneration

Total remuneration by type(Millions of yen)Stockoptions

Number ofpeoplereceiving
Bonuses remuneration(Millions of yen)Basicremuneration

451

338

21

90

13

(Audit & Supervisory
Committee members)(excluding outside directors)

19

19

—

—

2

Outside officers

20

20

—

—

5

Directors(excluding Audit & Supervisory
Committee members andoutside directors)

Directors

3. Outside Directors’ Supervision of Directors’ Executionof Duties and Internal Auditing, Mutual Cooperation
with Audit & Supervisory Committee Audits andAccounting Audits, and Relationship with the Internal
Control Division

2. Policy Regarding Decisions on Amounts of Director
Remuneration

In addition to attending Board of Directors’ meetings and making• Remuneration of directors (excluding Audit & Supervisorynecessary and effective remarks as appropriate during agenda

Committee members)deliberations, outside directors cooperate with the internal audit

This consists of the following.

division and the independent auditor as well as oversee directors in(1) Basic remuneration

the execution of their duties.

• Comprising a fixed amount determined based on rank as well as

LINTEC ANNUAL REPORT 2018

contributions to the director shareholding association

The remuneration assessment advisory meeting has been estab-• Long-term incentives provided by enabling directors to periodi-

lished as an advisory body for the president and CEO on matterscally purchase and hold shares of Company stock through theregarding the assessment of and decisions on remuneration for

director shareholding association based on contributions madedirectors (excluding Audit & Supervisory Committee members) withthe aim of improving objectivity and transparency. This body, which• Short-term incentives (remuneration linked to business perfor-

has members including external specialists, provides advice andmance) paid in amounts adjusted based on consolidated business

OVERVIEW(2) Bonuses

makes suggestions to the president and CEO when necessary.

results, the total amount paid not exceeding ¥150 million(3) Stock options• Long-term incentives provided together with the director shareholding association• Remuneration of outside directors (excluding Audit &Supervisory Committee members)This is decided by the Board of Directors in accordance with theCompany’s internal rules on director remuneration and based on each• Remuneration of directors (Audit & Supervisory Committee
members)

member’s duties and responsibilities, within totals approved at theGeneral Meeting of Shareholders.

This is discussed and decided by members of the Audit &Supervisory Committee in accordance with the Company’s internal
rules on director remuneration and based on each member’s
Meeting of Shareholders.

members)
STRATEGY

duties and responsibilities, within totals approved at the General• Remuneration of directors (Audit & Supervisory Committee
No change in the current policy

Takeover Defense Measures
The Company abolished its Rules of Large-Scale Purchase of its

2018, approved a resolution to replace share subscription rights,

shares based on its Basic Policies related to the Company’s owner-

which were provided as stock options, and contributions to theship control upon the expiry of the validity of the policy, which was at

director shareholding association, which were included in basic

the conclusion of the 124th Annual General Meeting of Shareholders

remuneration, with the new allotment of restricted stocks for theheld on June 21, 2018. At the same time, the Company abolished its

purpose of providing a long-term incentive to directors (excluding

Basic Policies related to the Company’s ownership control.

outside directors and Audit & Supervisory Committee members).

Nevertheless, after the expiration of the effective period of that

Beginning from the said General Meeting of Shareholders, thepolicy, the Company will continue to promote initiatives to protect its

Policy Regarding Decisions on Amounts of Director Remuneration

corporate value and the common interests of its shareholders. Fromis as follows.

that perspective, it will request that persons who are engaging in or

ESG

Further, the General Meeting of Shareholders held on June 21,

aim to engage in large-scale purchase provide necessary and suf• Remuneration of directors (excluding Audit & Supervisory

ficient information to allow the shareholders to appropriately deter-

Committee members)

mine the pros and cons of the large-scale purchase in accordanceThis consists of the following.

with relevant laws and regulations. At the same time, the Company(1) Basic remuneration

will disclose the opinions of the Board of Directors and endeavor to• A fixed amount determined based on rank, the total amount paid

secure necessary time and information for the shareholders to

not exceeding ¥420 million

consider such large-scale purchase. Further, if it is rationally judgedthat there is a risk of damage to the Company’s corporate value and• No change in the current policy

the common interests of shareholders unless timely defensive(3) Restricted stocks

measures are implemented to address a large-scale purchase, the• Long-term incentives to contribute to increasing the Company’s

Company will endeavor to secure its corporate value and thecorporate value and share price provided by the allotment ofcommon interests of its shareholders, as an obvious obligation of

restricted stocks, the total amount paid not exceeding ¥60 million

the Board of Directors entrusted with management of the Company

FINANCIAL INFORMATION(2) Bonuses

by its shareholders, by promptly deciding the content of the concrete
The amounts of remuneration are decided by the Board of Directors

measures deemed most appropriate at the time in accordance within accordance with the Company’s internal rules on director remu-

the relevant laws and regulations and executing such measures.

neration and based on the duties and responsibilities of each director (excluding Audit & Supervisory Committee members), within
totals approved at the General Meeting of Shareholders.
LINTEC ANNUAL REPORT 201845

THE BASE THAT SUPPORTS GROWTH

Governance

Policy on Holdings of Capital Tie-Up Shares

March 31, 2018, we held meetings with more than 150 domestic

The Company views the establishment and maintenance of stable,

and overseas institutional investors and analysts.

long-term relationships with business partners as a matter ofimportance. For this reason, shares of business partners are held(2) The Public Relations Office, Finance & Accounting Dept.,

strategically based on a comprehensive evaluation of factors such

General Affairs & Legal Dept., and Corporate Strategic Officeas the Company’s business relationship with the partner in ques-

will play a central role in advancing the Company’s various IR

tion. We only acquire such holdings when increasing trust andactivities. Relevant divisions pursue close coordination withcoordination with the business partner through holdings is judged

these offices and departments, exchanging information on aas an effective means of mutually raising corporate value, anddaily basis and meeting with members of senior management

these holdings are reviewed based on this perspective when neces-

as appropriate to share necessary information.

sary. In exercising voting rights, the Company respects the management policies of the investee and votes for or against proposals

include regular briefings on financial results and medium-term

contribute to improved corporate value and shareholder returns.

business plans, visits to overseas investors, participation in IR
conferences at which overseas investors gather, facility tours,

Stockholdings

business explanatory forums, and Company briefings for indi-

Stocks held for purposes other than pure investment

vidual investors. In the fiscal year ended March 31, 2018, theNumber of issues: 43 issues

Company participated in a total of three IR conferences held in

Total amounts recorded on balance sheet: ¥2,185 million

Tokyo. We seek to expand the range of information provided to

Fiscal Year under Review­—Specific Investment Shares
Top 10 issues

Number ofshares(Thousands)

Amounts
recorded onbalance sheet(Millions of yen)

Purpose of holding
To strengthen business

1,167 relationships

domestic and overseas shareholders and other investors by
publishing shareholder newsletters and annual reports andposting information in the IR section of our corporate website. At
the same time, we collect feedback from a wide range of share-

Toray Industries, Inc.

1,160

Fujipream Corporation

936

361 Same as above

Mitsubishi UFJ Financial Group, Inc.

159

111 Same as above

Soken Chemical & Engineering Co., Ltd.

35

92 Same as above

KING JIM CO., LTD.

76

78 Same as above

IMURA ENVELOPE CO., INC.

100

52 Same as above

solicited through IR activities are relayed to management by theMizuho Financial Group, Inc.

206

39 Same as above

relevant divisions via quarterly business reports at the Board ofOZU CORPORATION

15

35 Same as above

Arisawa Mfg. Co., Ltd.

35

34 Same as above

Directors’ meetings or reported appropriately to management

ASAHI PRINTING CO., LTD.

27

34 Same as above

Shareholder Interactions
The Company seeks to engage in constructive interactions withshareholders and other investors that contribute to sustainablegrowth and medium- to long-term improvements in corporate
value. The Company has established an investor relations (IR)activity system and advances proactive initiatives based on thefollowing policies to facilitate this endeavor.
(1) The officer responsible for IR implements and oversees theCompany’s various IR activities, including individual meetings
with shareholders and investors. In regard to responses torequests for individual meetings, members of senior management or directors will meet with shareholders or investors
requesting meetings based, whenever appropriate, on thedesires and interests of the requester. In the fiscal year ended

46(3) In addition to individual meetings, the Company’s IR activities

based on a careful examination of whether or not the proposal will

LINTEC ANNUAL REPORT 2018

holders and other investors through surveys that are attached toshareholder newsletters and made available on the IR website.
(4) Opinions and concerns of shareholders and other investors

on an as-required basis.
(5) In interactions with shareholders and other investors, we practicestringent management of information in accordance with theinternal Insider Trading Prevention Regulations to ensure that
insider information is not disclosed. In addition, the Company’s
disclosure policy stipulates that we will observe a quiet periodthat begins approximately one month prior to the announcementof quarterly financial results to avoid leaks of financial results andto maintain fairness. During this period, we will not answer questions or make comments on our financial results and forecasts.

A Message from an Outside Director

OVERVIEW

Aiming to strengthen governance,
I will continue providing
candid opinions based on an
objective perspective.
Kanako Osawa
Outside Director,
Audit & Supervisory
Committee Member

directors with the aim of heightening their motivation to increase

I became an outside director of the Company three years ago.

the share price and enhance corporate value by giving directors

My impression of Board of Directors’ meetings is that state-and shareholders a common interest in share price changes. The

ments and discussions have become more vigorous than they

recent General Meeting of Shareholders approved this revision.

were directly after my appointment. The different operational

As for the latter initiative, the Board decided to abolish takeover

attributes and types of specialization that LINTEC’s wide variety

defense measures upon the expiry of their validity in June. Theof business fields require can make it challenging to under-

Board reached this decision after carefully examining risks andstand the Company based only on participation in meetings of

merits, as well as the persuasiveness of their respective

the Board. To further my understanding, I attend monthly man-premises, and after taking into consideration the opinions ofagement meetings, which executive officers also attend.

shareholders and investors and changes in the external

Meanwhile, at meetings of the Board I make a point of stating

environment. In my view, both initiatives are consistent with thecandid opinions and asking questions from the perspective ofinterests of shareholders and directors and will contribute to thea non-specialist, which I believe provides opportunities forenhancement of LINTEC’s corporate value over the long term.

deepening discussions.

On the other hand, the Company faces tasks going forward.
This June saw the revision of Japan’s Corporate Governancea questionnaire survey of directors concerning the composition

Code. The code calls for increases in detail, objectivity, andand management of the Board. In this regard, I also give antransparency with respect to reductions in capital tie-up sharesevaluation in my capacity as an independent outside director.

and appointments and dismissals of CEOs. With this trend

I think that the plan–do–check–act (PDCA) cycle, whereby theseeming likely to continue, I feel that it will be necessary to

Board considers measures for the coming fiscal year in light ofdeepen discussions even further in the future.

ESG

Every year, the effectiveness of the Board is evaluated throughthe questionnaire survey’s results, is a sound way of ensuring the

STRATEGY

The Board of Directors

Also, in recent years LINTEC has been accelerating the globalization of operations. For example, it acquired three compa-

different questions each year. Recently, I have a real sense thatnies in Europe and the United States in 2016. As organizations

the questionnaire has become extremely meaningful because it

become larger, it inevitably becomes more difficult for gover-has encouraged proactive discussions regarding such issues asnance to reach and cover every part of them. In Japan, internal

corporate social responsibility (CSR) and the Sustainable

control is functioning adequately under the Audit Office.

Development Goals (SDGs).

However, the Company needs to create systems with the aim of

FINANCIAL INFORMATION

effectiveness of the Board. In addition, the Company devises

strengthening Groupwide governance. In such efforts, LINTEC
Initiatives for Corporate Value Enhancement

should coordinate with regional headquarters, including

LINTEC’s recent initiatives with respect to corporate governance

LINTEC USA HOLDING, INC., in the United States and LINTEC

include revision of the system for remuneration of corporate

ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED in

officers and abolition of takeover defense measures (Rules ofSingapore. Drawing on my experience and knowledge as an

Large-Scale Purchase of the Company’s shares). The former

attorney, I would like to help LINTEC steadily accomplish each

initiative promotes ownership of the Company’s shares by

one of these tasks and achieve sustained development.
LINTEC ANNUAL REPORT 201847

THE BASE THAT SUPPORTS GROWTH

Corporate Officers As of June 21, 2018

Representative Director, Chairman and CEO

Akihiko Ouchi (Date of Birth: Jan. 2, 1945)
Mar. 1967 Joined the Company
Apr. 1994 Manager, Nagoya Branch OfficeJun. 2000 Director, Plant Manager, Tatsuno Plant, Production Div.
Jun. 2004 Representative Director, President
Apr. 2014	Representative Director, Chairman and CEO(current position)

Gohei Kawamura (Date of Birth: Jan. 12, 1956)
Apr. 1979 Joined the Company
Jun. 2011	Executive Officer, Chairman and President, LINTEC(SUZHOU) TECH CORPORATION (seconded)
Apr. 2017	Director, Managing Executive Officer, Executive General
Manager, Production Div. and in charge of Quality
Assurance & Environmental Protection Div.
(current position)

Representative Director, President, CEO and COO

Hiroyuki Nishio (Date of Birth: Oct. 18, 1954)
Apr. 1978 Joined the Company
Jun. 2010 Director, General Manager, Corporate Strategic Office
Apr. 2014	Representative Director, President, CEO and COO(current position)

Jan. 1983 Joined the Company
Jun. 2011	Executive Officer, Executive General Manager, General
Affairs & Human Resources Div., General Manager,
General Affairs & Legal Dept. and Human Resources Dept.
Jun. 2015	Director, Managing Executive Officer, Executive General
Manager, General Affairs & Human Resources Div.
(current position)

Directors, Managing Executive Officers

Directors, Executive Officers

Makoto Hattori (Date of Birth: Oct. 12, 1957)

Shuji Morikawa (Date of Birth: Dec. 30, 1955)

Apr. 1980 Joined the Company
Apr. 2014	Executive Officer, Executive General Manager, Advanced
Materials Operations, Business Administration Div.
Apr. 2017	Director, Managing Executive Officer, Executive General
Manager, Business Administration Div.
(current position)

Kazuyoshi Ebe (Date of Birth: Jan. 26, 1953)
Mar. 1975 Joined the Company
Jun. 2008	Director, Deputy Executive General Manager,
Research & Development Div., General Manager,
Research Center and Intellectual Property Dept.
Apr. 2016	Director, Managing Executive Officer, Deputy Executive
General Manager, Business Administration Div. and in
charge of Optical Products Operations(current position)

Takashi Nakamura (Date of Birth: Dec. 23, 1953)
Apr. 1976 Joined the Company
Jun. 2011	Executive Officer, Executive General Manager,
Fine & Specialty Paper Products Operations,
Business Administration Div. and in charge of Converted
Products Operations
Apr. 2017	Director, Managing Executive Officer, Deputy Executive
General Manager, Business Administration Div.
(current position)

48

Tsunetoshi Mochizuki (Date of Birth: May 12, 1958)

LINTEC ANNUAL REPORT 2018

Apr. 1979 Joined the Company
Apr. 2013	Executive Officer, Executive General Manager, Industrial &Material Operations, Business Administration Div.
Jun. 2015	Director, Executive Officer, Executive General Manager,
Industrial & Material Operations, Business Administration
Div. (current position)

Junichi Nishikawa (Date of Birth: Sep. 12, 1955)
Apr. 1978 Joined the Company
Apr. 2013	Executive Officer, Plant Manager and Manager, Fine &Specialty Paper Production Dept., Kumagaya Plant,
Production Div.
Jun. 2017	Director, Executive Officer, Deputy Executive General
Manager, Production Div. and Plant Manager, Kumagaya
Plant (current position)

Takehiko Wakasa (Date of Birth: Jun. 23, 1956)
Apr. 1980 Joined the Company
Apr. 2013	Executive Officer, Plant Manager, Chiba Plant,
Production Div.
Jun. 2017	Director, Executive Officer, Deputy Executive General
Manager, Production Div. and Plant Manager,
			 Tatsuno Plant (current position)

Outside Director

Executive Officers

Kazumori Fukushima (Date of Birth: Feb. 12, 1958)

Toru Onishi
Plant Manager, Mishima Plant, Production Div.

Norio Murata

OVERVIEW

Apr. 1980	Joined Sanyo-Kokusaku Pulp Co., Ltd.
Apr. 2013	Executive Officer, General Manager, Kushiro Mill,
Nippon Paper Industries Co., Ltd.
Jun. 2017	Managing Executive Officer, General Manager,
Business Communication & Industrial Paper Sales Div.,
Nippon Paper Industries Co., Ltd. (current position)
Jun. 2017	Outside Director of the Company (current position)

Executive General Manager, Osaka Branch Office, Business Administration Div.,in charge of Western Japan

Shigeru Uematsu
Director / Audit & Supervisory Committee Member

Hiroshi Okada (Date of Birth: Aug. 25, 1954)
Apr. 1979 Joined the Company
Oct. 2012 General Manager, Audit OfficeJun. 2017	Director / Audit & Supervisory Committee Member(current position)

General Manager, Public Relations Office

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

Masahiro Oshima
President, LINTEC USA HOLDING, INC.
STRATEGY

Sumio Morimoto
Outside Directors / Audit & Supervisory Committee Members

Toru Nozawa (Date of Birth: Mar. 10, 1959)
Apr. 1981 Joined Jujo Paper Co., Ltd.
Jun. 2014	Outside Audit & Supervisory Board Member of 		the Company
Jun. 2015	Outside Director / Audit & Supervisory Committee
Member of the Company (current position)
Jun. 2017	Director, Managing Executive Officer, General Manager,
Corporate Planning Div. and in charge of Subsidiaries andAffiliated Companies, Nippon Paper Industries Co., Ltd.
(current position)

President, LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED

Tatsuya Tsukida
Executive General Manager, Research & Development Div. andGeneral Manager, Research Center

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

Apr. 1975 Joined Japan Development Bank
Apr. 2003	Lecturer, Chuo University, Graduate School of Commerce(current position)
Jun. 2006 Outside Director, Ryobi Limited (current position)
Jun. 2012 Outside Director of the Company
Jun. 2015	Outside Director / Audit & Supervisory Committee
Member of the Company (current position)

ESG

Hiroyuki Matsuo
Satoshi Ohoka (Date of Birth: Apr. 24, 1951)

Plant Manager, Agatsuma Plant, Production Div.

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

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

Apr. 1998	Certified as an Attorney, joined Kajitani Law Offices(to present)
Oct. 2005	Admitted to practice law in the State of New York,the United States
Jun. 2015	Outside Director / Audit & Supervisory Committee
Member of the Company (current position)

FINANCIAL INFORMATION

Kanako Osawa (Date of Birth: Dec. 22, 1970)

Yoichi Shibano
CFO, Executive General Manager, Administration Div.
and General Manager, Finance & Accounting Dept.

Naoshi Nishikado
General Manager, Corporate Strategic Office

LINTEC ANNUAL REPORT 201849