FINANCIAL
SECTIONManagement’s Discussion and Analysis...................... 51
Operating Risks............................................................. 53
Financial Summary....................................................... 54
Consolidated Balance Sheet......................................... 56
Consolidated Statement of Income.............................. 58
Consolidated Statement of Comprehensive Income... 58
Consolidated Statement of Changes in Net Assets..... 59
Consolidated Statement of Cash Flows....................... 60
Notes to Consolidated Financial Statements............... 61
Management’s Report on Internal Control overFinancial Reporting.................................................... 84
Report of Independent Auditors.................................... 85

50

LINTEC ANNUAL REPORT 2018

FINANCIAL SECTIONManagement’s Discussion and Analysis

Profit before income taxes rose 8.2% year on year, to ¥16.7 billion,

In the fiscal year under review, consolidated net sales increased

reflecting the recording in extraordinary loss of provision for business

20.9% year on year, to ¥249.0 billion, due to the three companies instructure improvement and goodwill impairment loss, both of which

Europe and the United States that were acquired at the end of 2016

were related to U.S. subsidiaries. Income taxes following the applica-

and a favorable performance by businesses related to semiconduc-tion of tax effect accounting increased 31.6% year on year, to ¥5.5

tors and electronic components.

billion, due to the absence of the previous fiscal year’s positive tax

Although net sales increased 20.9%, gross profit rose 18.8% year
on year, to ¥62.8 billion, due to an increase in fuel and raw material
prices. Operating income was up 21.1% year on year, to ¥20.1 billion,
as growth in sales volume and cost reduction effects outweighed the

OVERVIEW

Revenues and Expenses

effect. Profit attributable to owners of parent declined 1.7%, to ¥11.3
billion.
Net income per share decreased from ¥158.69 in the previous fiscal
year to ¥156.02, and ROE declined from 6.6% to 6.2%.

amortization of goodwill of subsidiaries that the Company acquired.

Net Sales by Segment¥ Billion

STRATEGY

249.0
Printing and Industrial Materials Products Up 42.1%
206.0

Printing andIndustrial Materials
Products

Electronic and
Optical Products

85.7• In Printing & variable information products operations, adhesive films for labels sold well in Japandue to higher demand for campaign labels for beverages and eye-catching labels for cosmetics.
Overseas, sales were stable in Southeast Asia.
• In Industrial & material operations, sales of equipment for the mail-order industry were firm in Japan,
while sales of motorcycle- and automobile-use adhesive products and window films were solid in Asia.
• Net sales increased due to contributions from the three companies in Europe and the United Statesacquired at the end of 2016.

121.7

Electronic and Optical Products Up 6.8%

83.2

• In Advanced materials operations, sales of semiconductor-related adhesive tapes and equipment
increased significantly due to brisk demand for products for smartphones and cloud-computing servers.
Sales of multilayer ceramic capacitor-related tapes also rose thanks to strong demand for products for
smartphones and automobiles.
• In Optical products operations, revenues from LCD-related adhesive products decreased because,
although sales volumes were steady, the effect of a fall in unit sales prices and a change in the sales mix
was significant.

88.9

Paper andConverted Products

37.1• In Fine & specialty paper products operations, sales of color papers for envelopes were sluggish, but
sales of industrial specialty papers and oil and water resistant papers were firm.
• In Converted products operations, sales of release papers for electronic materials and release films for
optical-related products were favorable, and sales of casting papers for synthetic leather were solid.

2017

ESG

Paper and Converted Products Up 3.6%

38.5
2018
(Fiscal years ended March 31)

Operating Income Factor Analysis¥ Billion

Consolidated

Non-Consolidated

16.6
Higher sales
volume and sales
mix improvement
+4.3

2017

Fall in unit
sales prices
–0.6

20.1
Higher fueland raw
material prices–1.5

Rise in
fixed costs–1.7

FINANCIAL INFORMATION

Cost reduction
effects, etc.
+1.2

Increase insales volume, etc.
+1.8

2018
(Fiscal years ended March 31)

LINTEC ANNUAL REPORT 2018

51

FINANCIAL SECTIONManagement’s Discussion and Analysis

Financial Position

Cash Flows from Operating Activities

AssetsCash flows from operating activities increased ¥2.5 billion year on

Total assets as of March 31, 2018, were ¥292.7 billion, an increase ofyear, to a cash inflow of ¥26.8 billion. The principal movements were¥18.5 billion from the end of the previous fiscal year. The main

as follows:changes were as follows:·P rofit before income taxes

+¥1.3 billion· Cash and deposits+¥13.6 billion·D epreciation and amortization

+¥1.6 billion· Trade notes and accounts receivable

+¥5.8 billion·A mortization of goodwill+¥3.1 billion· Inventories+¥3.9 billion·T rade notes and accounts receivable

–¥3.7 billion· Property, plant and equipment

+¥1.5 billion· Inventories–¥4.5 billion· Goodwill–¥5.4 billion·T rade notes and accounts payable

+¥5.5 billion· Impairment loss

+¥1.0 billion

Liabilities
Total liabilities as of March 31, 2018, were ¥106.3 billion, an increase of

Cash Flows from Investing Activities¥10.8 billion from the end of the previous fiscal year. The main

Cash flows from investing activities increased ¥40.8 billion year onchanges were as follows:

year, to a cash outflow of ¥7.5 billion. The principal movements were+¥9.6 billion

as follows:· Short-term loans payable

+¥1.7 billion·P ayments into time deposit· Long-term loans payable

–¥3.4 billion·P roceeds from withdrawal of time deposits–¥4.1 billion·P urchase of property, plant and equipment

+¥5.0 billion· Trade notes and accounts payable

+¥3.3 billion

Net Assets·P urchase of shares and membership interests of subsidiaries

Net assets as of March 31, 2018, were ¥186.4 billion, an increase of

resulting in change in scope of consolidation

+¥36.6 billion¥7.7 billion from the end of the previous fiscal year. The main changes
Cash Flows from Financing Activities

were as follows:· Retained earnings

+¥6.5 billion

Cash flows from financing activities decreased ¥11.6 billion year on· Foreign currency translation adjustments

+¥1.2 billion

year, to a cash outflow of ¥6.4 billion. The principal movements wereas follows:

Cash Flows·S hort-term loans payable

+¥3.4 billion

Cash and cash equivalents as of March 31, 2018, amounted to ¥55.0·P roceeds from long-term loans payable

–¥20.9 billion

billion, an increase of ¥13.8 billion year on year.

·R epayments of long-term loans payable

+¥6.2 billion

Net Assets

Cash Flows¥ Billion¥ Billion

186.4
178.7

Share
subscription
rightsTotal accumulated+0.0
other comprehensive
Total
incomeshareholders’+1.3
equity
+6.5

2017

52

LINTEC ANNUAL REPORT 2018

Noncontrollinginterests–0.1

Net cash used ininvesting activities–7.5
Net cash

41.3

2018
(Fiscal years ended March 31)

2017

Net cashprovided byoperatingactivities+26.8

Effect ofexchange ratechange on cash
and cashequivalents
+0.8

55.0

used infinancing activities
–6.4

2018
(Fiscal years ended March 31)

Operating Risks

The following is a summary of risks that could affect the LINTEC Group’s(4) Outbreaks of contagious diseases

operations. This summary provides specific examples of major risks(5) Unpredictable changes in laws and regulations, such as those
involving tax systems, foreign exchange, or customs

OVERVIEW

that are anticipated, but it does not include all risks.

(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

Furthermore, global trends in the electronics industry affect the Group’s

technological capabilities that cater to market demand and bringing

electronics-related products business. Future market trends could

to market competitive, high-value-added products. Accordingly, theaffect 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

However, there is no guarantee that such investment of management
resources in R&D will result in the development of new products ormaintain selling prices to preserve sufficient earnings or sales share.

increase operating income. Due to such factors as extended development

Furthermore, the Group’s business results could be affected byperiods, it could become necessary to discontinue development, anddifficulties related to cost reductions aimed at maintaining profits

if product development costs cannot be recovered, it could affect theand recovering its share by refining customer services.

Group’s business results.

3. Changes in Raw Material Prices

7. Intellectual Property Rights

The Group uses a large quantity of pulp for paper and petrochemical

The Group takes necessary measures to protect intellectual property

products as raw materials and fuel. The prices of these materials andrights in Japan and overseas for various original production technologies

fuels fluctuate in accordance with market conditions, such as inven-that it has developed. However, legal measures alone do not provide

tories and the supply–demand balance. The Group purchases raw

complete protection, possibly preventing the Group from effectively

materials in light of careful monitoring of market trends. However,protecting the rights it has obtained. Furthermore, in the event thata dramatic change in raw material prices could affect the Group’s

a lawsuit is filed by a third party regarding intellectual property rights

business results.

infringement associated with the Group’s products, the Group’s business

ESG

markets in which the Group operates, the Group may be unable to

STRATEGY

Due to intense competition in both the domestic and overseas

with other companies and academic institutions.

results 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 subject

and overseas Group companies. Therefore, changes in foreign

to lawsuits or other claims related to product liability, environmental,

exchange rates could affect the Group’s business results.

or intellectual property rights issues. Lawsuits or claims, depending
FINANCIAL INFORMATION

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 as such 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.

(3) Infrastructure failures, such as those related to electric power,
water, or communications
LINTEC ANNUAL REPORT 2018

53

FINANCIAL SECTION

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

2018

2017

2016

2015

For the year:
Net sales
Operating income% of net sales
Profit before income taxes
Profit attributable to owners of parent
Return on equity
Return on assets¥ 249,030
20,095
8.1%
16,666
11,2576.2%
6.5%¥205,975
16,595
8.1%
15,39811,450
6.6%
6.1%¥210,501
17,692
8.4%
16,79910,8996.4%
7.4%¥207,255
16,881
8.1%
17,555
11,6597.2%
7.8%

Per share data (yen):
Net income
Net assets
Cash dividends¥ 156.02
2,573.69
66.00¥ 158.69
2,465.43
66.00¥ 151.07
2,370.49
54.00¥ 161.63
2,363.81
48.00

Depreciation and amortization
Purchase of property, plant and equipment
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities¥ 9,031(8,084)
26,819(7,532)(6,363)¥ 7,466(13,049)
24,361(48,378)
5,257¥ 8,800(9,810)19,928(9,898)(4,044)¥ 8,713(6,299)15,485(5,104)(3,135)

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¥175,077
77,85897,21855,04275,336
14,395
8.0%
292,735
186,42063.4%¥151,449
64,40187,04841,28473,871
17,795
10.3%
274,199
178,69064.9%¥163,647
56,389107,258
60,32364,859——240,720
172,101
71.1%¥163,017
57,058105,958
56,05061,503——
237,444
171,674
71.8%

76,564,240
4,794

76,564,240
4,760

76,564,240
4,246

76,564,240
4,413¥121,691
88,88238,456¥85,721
83,27852,632¥88,100
85,89554,576¥86,826
83,28154,564

3,040
11,972
4,996

1,672
9,155
5,767

2,785
10,5624,303

2,878
10,071
3,996

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.

54

LINTEC ANNUAL REPORT 2018

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

2013

2012

2011

2010

2009

¥203,242
13,766
6.8%
12,883
8,501
5.8%
6.0%

¥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%

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

¥ 114.22
2,100.87
42.00¥ 102.83
1,909.57
34.00¥ 115.26
1,766.60
40.00¥ 180.21
1,715.78
40.00

¥

¥

¥10,055(5,508)16,309(6,952)(8,020)¥ 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)¥11,286(9,584)
12,979(9,752)(2,300)¥149,396
54,82094,57544,99261,456——225,073
152,61067.3%¥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%¥ 95,937
43,65552,282
15,37067,010107
0.1%
172,854
113,930
65.5%

76,564,240
4,223

76,564,240
4,270

76,564,240
4,286

76,564,240
4,198

76,564,240
4,037

76,564,240
3,987¥86,310
79,14352,781¥82,785
72,37252,061¥90,143
73,92553,225¥91,936
81,19355,317

—
—
—

—
—
—

2,290
6,846
4,645

2,380
3,196
4,980

5,213
3,942
4,846

7,990
6,732
6,129

—
—
—

—
—
—

96.36
1,596.37
24.00

OVERVIEW

2014

44.86
1,497.58
20.00

STRATEGYESG
FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

55

FINANCIAL SECTION

Consolidated Balance Sheet
LINTEC Corporation and its consolidated subsidiaries
March 31, 2018 and 2017

ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2018

2017

2018

Current assets:¥ 58,614¥ 45,060

Trade notes and accounts receivable (Notes 5, 14)

72,59066,801

683,269

Inventories (Note 3)

38,506

34,584362,443

Deferred tax assets (Note 19)

1,483

1,614

13,962Other (Notes 14, 16)

3,991

3,503

37,573

Cash and deposits (Notes 12, 14)$551,721

(109)

(114)

(1,028)175,077

151,449

1,647,941

Buildings and structures

73,701

71,545

693,725

Machinery, equipment and vehicles

125,066

124,185

1,177,203

Land

11,083

11,057104,326

Allowance for doubtful accounts
		

Total current assets

Non-current assets:
Property, plant and equipment (Notes 4, 8, 9, 13):

Construction in progress

5,087

2,163

47,891

Other

12,54812,511

118,111

227,487

221,463

2,141,257(152,150)(147,592)(1,432,143)

75,33673,871

709,114

29,18934,558274,745

Accumulated depreciation		Property, plant and equipment, net

Intangible assets:
Goodwill

3,285

4,000

30,92932,47438,559305,675

Investment securities (Notes 14, 15)

2,743

3,102

25,824

Deferred tax assets (Note 19)

5,047

5,063

47,514

Other

2,153

2,256

20,270

(98)

(105)

(923)

Other (Note 13)		Total intangible assets

Investments and other assets:

Allowance for doubtful accounts
		

Total investments and other assets

		

Total non-current assets

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

56

LINTEC ANNUAL REPORT 2018

9,846

10,31892,686

117,658

122,749

1,107,476¥ 292,735¥ 274,199$ 2,755,417

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2018

2017

2018

Current liabilities:¥ 45,057$ 514,673

2,351

641

22,129Current portion of long-term loans payable (Notes 14, 16, 26)

2,986

3,051

28,109Accrued income taxes (Notes 14, 19)

2,889

3,098

27,200

89

90

846

Provision for directors’ bonuses
Provision for business structure improvement
Other (Notes 14, 16, 26)
		Total current liabilities

39

—

367

14,823

12,460139,527

77,85864,401

732,854

14,395

17,795

135,497

OVERVIEW¥ 54,678

Short-term loans payable (Notes 14, 26)

Trade notes and accounts payable (Notes 5, 14)

Non-current liabilities:
Long-term loans payable (Notes 14, 16, 26)

132

135

1,243

Net defined benefit liability (Note 17)

13,006

12,362

122,422

Other (Note 26)
		Total non-current liabilities

		Total liabilities

922

814

8,685

28,456

31,107

267,849

106,31495,5081,000,704

23,201

23,201

218,385

STRATEGY

Provision for environmental measures

Commitments and contingent liabilities (Note 2)
Net assets:
Shareholders’ equity (Note 25):
Common stock:
Authorized: 300,000,000 shares in 2018 and 2017

		Issued: 76,564,240 shares in 2018 and 2017

Capital surplus

26,82926,829252,532

Retained earnings

137,743

131,247

1,296,526

ESG

		

Less: treasury stock, at cost:(7,711)(7,714)(72,581)180,062

173,563

1,694,864

Net unrealized holding gain on securities

657

775

6,188

Foreign currency translation adjustments

8,139

6,938

76,615Remeasurements of defined benefit plans (Note 17)(3,157)(3,392)(29,718)

5,639

4,320

53,085

214

186

2,022

		

4,410,239 shares in 2018 and 4,412,515 shares in 2017		Total shareholders’ equity

Accumulated other comprehensive income

Total accumulated other comprehensive income

Share subscription rights (Note 18)

503

619

4,740

Total net assets

186,420

178,690

1,754,713

Total liabilities and net assets¥292,735¥274,199$2,755,417

Non-controlling interests
		

LINTEC ANNUAL REPORT 2018

FINANCIAL INFORMATION

		57

FINANCIAL SECTION

Consolidated Statement of Income
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2018 and 2017

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses (Notes 6, 7)
Operating income
Non-operating income:Interest income
Dividend income
Rent income
Gain on sales of non-current assets
Insurance income
Other income
		 Total non-operating income
Non-operating expenses:
Interest expenses
Loss on retirement of non-current assets
Compensation expenses
Foreign exchange losses
Other expenses
		 Total non-operating expenses
Ordinary income
Extraordinary gain:
Gain on sales of investment securities (Note 15)
Gain on sales of non-current assets (Note 8)
Gain on liquidation of subsidiaries
		 Total extraordinary gain
Extraordinary loss:
Impairment loss (Note 9)
Provision for business structure improvement (Note 10)
Loss on liquidation of subsidiaries
Loss on sales of investment securities (Note 15)
		Total extraordinary losses
		 Profit before income taxes
Income taxes (Note 19):
Current
Deferred		Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent (Note 25)

Thousands of
U.S. dollars(Note 1)

2018

2017

2018

¥249,030
186,206
62,82342,727
20,095¥205,975
153,115
52,85936,264
16,595$2,344,033
1,752,699
591,333
402,182
189,151

220
272
16
61
10
266
846

218
91
43
20
226
274
875

2,071
2,565
150
575
94
2,510
7,967

226
730
128
1,012
454
2,552
18,389

73
785
107
473
345
1,786
15,684

2,134
6,871
1,214
9,532
4,274
24,027173,092

343
—
—
343

190
121
17
329

3,233
—
—
3,233

1,041
1,024
—
—
2,066
16,666

34
—
568
13
615
15,398

9,804
9,642
—
—
19,447
156,879

5,410
107
5,517
11,149(108)¥ 11,257

5,383(1,191)
4,192
11,206(244)¥ 11,450

50,924
1,011
51,935
104,943(1,017)$ 105,960

Millions of yen

Thousands of
U.S. dollars(Note 1)

Consolidated Statement of Comprehensive Income
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2018 and 2017

ProfitOther comprehensive income (Note 11)
Net unrealized holding gain on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans (Note 17)
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to:)Owners of parent
Non-controlling interests
The accompanying notes are an integral part of the consolidated financial statements.

58

LINTEC ANNUAL REPORT 2018

2018

2017

2018

¥11,149¥11,206$104,943

(117)
1,194
234
1,311
¥12,460

73
(907)
118
(716)
¥10,489(1,108)
11,2402,211
12,343$117,286

12,576(115)

10,765(275)

118,375(1,088)

Consolidated Statement of Changes in Net Assets
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2018 and 2017

Thousands

Millions of yen
Shareholders’ equity

Number ofshares ofcommonstock

Commonstock

CapitalsurplusRetainedearnings

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

76,564¥23,201¥26,829¥123,713¥(7,712)¥166,032

¥ 701

Total
Foreign Remeasure­ accumulated
currency
ments of other com­translation
definedprehensive
adjustments benefit plansincome¥7,812¥(3,509)¥5,005

Share
subscription
rights

Noncontrollinginterests

Total net
assets

¥169

¥ 895

¥172,101OVERVIEW

Balance as at April 1, 2016

Accumulated other comprehensive income

Changes during the year:
Cash dividends(4,329)(4,329)(4,329)	Profit attributable to ownersof parent

11,450Purchase of treasury stock
Disposal of treasury stock0

Change of scope of consolidation

11,45011,450

(2)

(2)

(2)

0

0

0

413

413

413

	Net changes in items other
73

(874)

116

(684)

17

(275)

(942)

Total changes during the year

than shareholders’ equity
—

—

0

7,533

(2)

7,531

73

(874)

116

(684)

17

(275)

6,589

Balance as at March 31, 2017

76,564¥23,201¥26,829¥131,247¥(7,714)¥173,563¥ 775¥6,938¥(3,392)¥4,320

¥186

¥ 619

¥178,690

Changes during the year:(4,762)

Cash dividends(4,762)(4,762)

Profit attributable to owners(0)

Disposal of treasury stock

11,257

11,257

(1)

(1)

(1)

4

4

4

—

—

Change of scope of consolidation

STRATEGY

11,257of parent
Purchase of treasury stock

Net changes in items other
(117)

1,201

235

1,318

28

(115)

1,231

Total changes during the year

—

—

(0)

6,495

3

6,498

(117)

1,201

235

1,318

28

(115)

7,729

Balance as at March 31, 2018

76,564¥23,201¥26,829¥137,743¥(7,711)¥180,062¥ 657¥8,139¥(3,157)¥5,639

¥214

¥ 503

¥186,420

than shareholders’ equity

Thousands

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

Balance as at April 1, 2017

Number ofshares ofcommonstock

Commonstock

76,564$218,385

CapitalsurplusRetainedearnings

Accumulated other comprehensive income

Net
Total unrealized
Treasury shareholders’ holding gain
stock
equity on securities$ 7,296

Total
Foreign Remeasure­ accumulated
currency
ments of other com­translation
definedprehensive
adjustments benefit plansincome$65,308$(31,934)$40,671

Share
subscription
rights$1,759Noncontrollinginterests

Total net
assets$252,534 $1,235,389$(72,613) $1,633,695$ 5,829 $1,681,955(44,823)(44,823)(44,823)

Changes during the year:

ESG

Cash dividends
Profit attributable to owners

105,960of parent
Purchase of treasury stock(1)

Disposal of treasury stock

105,960

105,960

(11)

(11)

(11)

44

42

42

—

—

Change of scope of consolidation
Net changes in items other(1,108)11,3072,215

12,414263(1,088)

11,58961,168(1,108)11,3072,215

12,414263(1,088)72,758$(72,581) $1,694,864$ 6,188$76,615$(29,718)$53,085$2,022than shareholders’ equity
Total changes during the year——

Balance as at March 31, 2018

76,564$218,385(1)

61,137$252,532 $1,296,526

32$ 4,740 $1,754,713

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

LINTEC ANNUAL REPORT 2018

59

FINANCIAL SECTION

Consolidated Statement of Cash Flows
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2018 and 2017

Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in net defined benefit liability
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Increase (decrease) in provision for business structure improvement
Loss (gain) 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
Loss (gain) on sales of investment securities
Increase (decrease) in provision for environmental measures
Loss (gain) on liquidation of subsidiaries
Impairment loss
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Special retirement expenses paid
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
Proceeds from liquidation of subsidiaries
Payments of loans receivableCollection of loans receivable
Purchase of shares and membership interests of subsidiaries resulting in change inscope of consolidation (Note 12)
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Purchase of treasury stock
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of year (Note 12)
The accompanying notes are an integral part of the consolidated financial statements.

60

LINTEC ANNUAL REPORT 2018

Millions of yen

Thousands of
U.S. dollars(Note 1)

2018

2017

2018

¥16,666
9,031
3,427
751
(20)
(492)
226
38
(56)
374
(5,229)(3,682)
8,967
(343)
(3)
—
1,041
1,444
32,143477(233)(5,568)—26,819¥ 15,398
7,466
315
947
(24)
(310)
73
—
(132)
482
(1,565)
812
3,470
(177)
(2)
551
34
1,789
29,128325(16)(4,809)(265)
24,361$156,879
85,00732,2597,075(188)(4,637)
2,134
364
(527)
3,527
(49,224)(34,663)
84,411(3,233)
(29)
—
9,804
13,594
302,554
4,495(2,194)(52,411)—
252,444(7,631)
8,098(8,084)
132
(123)
(4)
536
—
(24)
6

(10,897)
12,164(13,049)
181
(199)
(5)
361
24
(2)
4

(71,835)
76,230(76,097)
1,242(1,162)
(41)
5,049
—
(229)
58

(308)

(36,909)(2,900)(129)(7,532)(50)(48,378)(1,217)(70,903)

1,692—(3,059)(4,762)(1)(232)
0(6,363)834
13,75741,284(1,748)20,850(9,253)(4,328)
(2)
(258)
0
5,257
35
(18,723)
60,323

15,933—(28,797)(44,831)(11)(2,190)0(59,897)
7,855
129,498
388,600—¥55,042(315)¥ 41,284—$518,098

Notes to Consolidated Financial Statements
LINTEC Corporation and its consolidated subsidiaries
March 31, 2018(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 sheet by writing them down based on the decreasein 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 sheet by writing them down based on the decreasein their profitability.
(g) Property, plant and equipment (Excluding leased assets)
Depreciation is computed by the straight-line method over the useful livesof the respective assets.
The significant useful lives are summarized as follows:		 Buildings and structures
3–50 years
		 Machinery, equipment and vehicles
3–17 years(h) Intangible assets (Excluding leased assets)
Capitalized costs of software for internal use are amortized using thestraight-line method over useful lives (5 years).
(i) Leased assets
Leased assets arising from finance lease transactions which transfer
ownership to the lessees 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 lessees 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 estimateduncollectible accounts, based on individual collectibility with respect toidentified doubtful receivables and past experience of doubtful receivables.
(k) Provision for directors’ bonuses
Bonus to directors is accrued at the year-end and to be paid in thefollowing year when such bonuses are attributable.
(l) Accounting method for retirement benefits(1) Method of attributing expected retirement benefits to periods
	In calculating retirement benefit obligations, the benefit formula basis
is used to attribute expected retirement benefits to periods throughthe end of the fiscal year.
(2) Method of amortizing actuarial gain and loss and prior service cost	Actuarial gain and loss are amortized in the year following the year
in which the gain or loss is recognized by the straight-line method
principally over 15 years. Prior service cost is being amortized by thestraight-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.

STRATEGYESG
FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

OVERVIEW

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 Act 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 ¥106.24=U.S.$1, the prevailingexchange rate as of March 31, 2018. This translation should not be
construed as a representation that the Japanese yen amounts could be
converted into U.S. dollars at this or any other rate of exchange.
As permitted under the Financial Instruments and Exchange Act 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, 2018 presentation.
(b) Consolidation
The accompanying consolidated financial statements include the accountsof the Company and its 40 significant subsidiaries as of March 31, 2018,
but exclude subsidiaries whose total assets, net sales, profit and retained
earnings are not material in relation to the comparable amounts in thesestatements. All significant intercompany accounts and transactions havebeen eliminated in consolidation.
Goodwill is amortized over periods of the useful lives (mainly 5 years)
on a straight-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, the Company
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.
Transactions in foreign currencies are recorded based on the prevailingexchange rates on the transaction dates and the resulting translation
gains or losses are included in statement of income.
In respect of the financial statement items of overseas subsidiaries, allassets 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 rates during the fiscal year.
Translation differences after allocating to non-controlling interest for
portions attributable to non-controlling interest are reported as foreign
currency translation adjustments in a separate component of net assets
in the accompanying consolidated balance sheet.

61

FINANCIAL SECTION(o) Cash and cash equivalents
Cash and cash equivalents are composed of cash and time deposits
having maturities within three months from acquisition, all of 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 and aremeasured using enacted tax rates and laws that will be in effect when 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 (other thanthe 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 be made at any time byresolution of the shareholders or by the Board of Directors if certain
conditions are met, but neither the capital reserve nor the legal reserve isavailable for distributions.
(s) Hedge accounting(1) Hedge accounting method	The exceptional accounting treatment (the “Tokurei-shori”) is appliedwith respect to interest rate swaps that meet the requirements tohedge the cash flow volatility of certain foreign currency-denominatedloans. The Tokurei-shori and the designated hedge accounting (the“Furiate-shori”) are applied with respect to interest rate and currency
swaps that meet the requirements to hedge the cash flow volatility
caused by foreign exchange rate fluctuations on certain foreign
currency-denominated loans.
(2) Hedging instruments and hedged items
1Hedging instruments......Interest rate swaps
	  Hedging items.................Foreign currency-denominated loans
2Hedging instruments......Interest rate and currency swaps
	  Hedging items.................Foreign currency-denominated loans(3) Hedging policy	In accordance with the internal regulation, risk of fluctuations ininterest rates and foreign exchange is hedged.
(4) Method of evaluating the effectiveness of hedges
	The evaluation of effectiveness is omitted for interest rate swaps
accounted for under the Tokurei-shori and for interest rate and currency
swaps accounted for under the Tokurei-shori and Furiate-shori.
(t) Accounting standards issued but not yet applied•A ccounting Standard for Revenue Recognition (ASBJ Statement No. 29,
issued on March 30, 2018)•G
 uidance on Accounting Standard for Revenue Recognition (ASBJ
Guidance No. 30, issued on March 30, 2018)(1) Overview
	This is a comprehensive accounting standard for revenue recognition.
Revenue is recognized using the following five steps.
Step 1: Identify the contract with a customer.
Step 2: Identify the separate performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: A llocate the transaction price to the separate performanceobligations in the contract.
Step 5: R ecognize revenue when the entity satisfies a performanceobligation.
(2) Application schedule	These accounting standards will be adopted from the beginning of theyear ending March 31, 2022.
(3) Effect of application
	The amount of the impact was still being assessed when these
consolidated financial statements were prepared.

2. Commitments and Contingent Liabilities
The Company and its consolidated subsidiaries had unused lines of credit for short-term financing aggregating ¥26,521 million (U.S. $249,636 thousand)and ¥23,194 million at March 31, 2018 and 2017, respectively.
3. Inventories
Merchandise and finished goods, work in process, and raw materials and supplies as of March 31, 2018 and 2017 were as follows:
Millions of yen

Thousands of
U.S. dollars

Merchandise and finished goods

2018¥14,4212017¥13,0312018$135,746

Work in process

12,575

11,951

118,367

Raw materials and supplies

11,5089,601

108,330¥38,506¥34,584$362,443

Total

4. Reduction Entry
Reduction entry amounts and details deducted from the acquisition cost of property, plant and equipment as of March 31, 2018 and 2017 were as follows:

Buildings and structures
Machinery, equipment and vehicles
Total

62

LINTEC ANNUAL REPORT 2018

2018
¥19

Millions of yen

Thousands of
U.S. dollars

2017
¥—

2018
$181

36

—

340

¥55

¥—

$522

Millions of yen

Thousands of
U.S. dollars

Trade notes and accounts receivable2018¥4,988

2017
¥—

2018
$46,954

Trade notes and accounts payable

8,521

—

80,214

Millions of yen

Thousands of
U.S. dollars

2017¥ 5,1252018$ 49,978OVERVIEW

5. 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 ofreceivables and payables maturing as of March 31, 2018 and 2017 were included in the ending balance.

6. Selling, General and Administrative Expenses
Major items included in selling, general and administrative expenses for the years ended March 31, 2018 and 2017 were as follows:2018¥ 5,309

Transportation and warehousing expenses

(12)

(44)

7,743

88,086Retirement benefit expenses

321

423

3,029

Provision for directors’ bonuses

85

95

800

Depreciation and amortization

1,350

1,092

12,714

Research and development expenses

7,925

7,639

74,600Other

18,381

14,156173,017¥42,727¥36,264$402,182

Total

STRATEGY

(4)
9,358

Provision for allowance for doubtful accounts
Salaries and allowances

7. 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, 2018 and2017 were ¥7,925 million (U.S.$74,600 thousand) and ¥7,639 million, respectively.
8. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets was related to sales of land for the year ended March 31, 2017.
9. Impairment Loss
The Company has recognized impairment loss on the following classes of assets for the years ended March 31, 2018 and 2017:

Major use—

Location

Category

Kentucky State, U.S.A.

GoodwillThousands of
U.S. dollars

ESG

Millions of yen

2018

Impairment Loss

¥1,041$9,804The Companies categorize goodwill into groups mainly based on each company in consolidated subsidiaries for the goodwill impairment testing.
VDI, LLC recognized an impairment loss of ¥1,041 million for the goodwill as future operating results are expected to be lower than the business planat the time of acquisition of VDI, LLC.
The recoverable amount of the goodwill is measured at the value in use determined by future cash flows discounted at 18.0%.
Millions of yen
Location

Category

Pressure-sensitive adhesive related
products manufacturing equipment

Massachusetts State, U.S.A.

Machinery, equipment and vehicles

2017

Impairment Loss

¥34

FINANCIAL INFORMATION

Major use(1)		Circumstances leading to the recognition of impairment loss
The impairment loss above has been recognized because the asset has decreased in profitability.
(2) Method of calculating recoverable amounts
The recoverable amounts of the assets above are the net realizable value and based on a third-party appraisal value.
10. Provision for Business Structure Improvement
The Company has recognized provision for business structure improvement for a management rationalization of MADICO, INC., its wholly owned consolidated subsidiary in the U.S. for the year ended March 31, 2018 and the loss is mainly related to the special retirement expenses.

LINTEC ANNUAL REPORT 2018

63

FINANCIAL SECTION

11. Comprehensive Income
Reclassification adjustment and tax effect of other comprehensive income for the years ended March 31, 2018 and 2017 were as follows:
Millions of yen

Thousands of
U.S. dollars

2018

2017

2018

¥ 172

¥ 340

$ 1,625

(343)

(177)

(3,233)

(170)

163

(1,608)

53

(89)

499

(117)

73

(1,108)

1,194

(453)

11,240

―

(454)

―

1,194

(907)

11,240Net unrealized holding gain on securities:
Amount incurred during the fiscal year
Reclassification adjustment
		

Prior to deducting tax effect		Tax effect		

Net unrealized holding gain on securities

Foreign currency translation adjustments:
Amount incurred during the fiscal year
Reclassification adjustment
		

Prior to deducting tax effect

―

―

—

1,194

(907)

11,240

Amount incurred during the fiscal year

153

(229)

1,448

Reclassification adjustment

185

397

1,741
3,190

		Tax effect		Foreign currency translation adjustments

Remeasurements of defined benefit plans:

338

167

		Tax effect

(103)

(49)

(978)

		

234

118

2,211

¥1,311¥(716)$12,343

		Prior to deducting tax effectRemeasurements of defined benefit plans

Total other comprehensive income

12. Cash and Cash Equivalents
1. Reconciliation between cash and cash equivalents in the consolidated statement of cash flows and cash and deposits in the consolidated balance
sheet as of March 31, 2018 and 2017 were as follows:

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

2018¥58,614

Millions of yen

Thousands of
U.S. dollars

2017¥45,0602018$551,721(3,572)(3,775)(33,622)¥55,042¥41,284$518,098

2. Information on assets and liabilities of newly acquired consolidated subsidiaries through acquisition of shares or membership interests
	There are no assets and liabilities of newly acquired consolidated subsidiaries through acquisition of shares or membership interests for theyear ended March 31, 2018.
		 Assets and liabilities of newly acquired consolidated subsidiaries through acquisition of shares or membership interests for the year ended
March 31, 2017 was as follows:(1) Assets and liabilities of VDI, LLC (a newly acquired consolidated subsidiary through acquisition of membership interests) at the inception of its
consolidation, the acquisition cost of its membership interest and the related expenditures (net) for the acquisition were as follows:
Millions of yen

2017
Current assets

473

Non-current assets

1,713

Goodwill

1,839

Current liabilities(222)

Non-current liabilities(1,102)Acquisition cost of membership interests¥ 2,701

Cash and cash equivalents
Net expenditures for acquisition

64¥

LINTEC ANNUAL REPORT 2018(95)
¥ 2,605

(2) Assets and liabilities of MACtac Americas, LLC (another newly acquired consolidated subsidiary through acquisition of membership interests) at the
inception of its consolidation, the acquisition cost of its membership interest and the related expenditures (net) for the acquisition were as follows:
Millions of yen

OVERVIEW

2017
Current assets¥ 9,066

Non-current assets

6,820

Goodwill

30,889Current liabilities(4,794)Non-current liabilities(7,564)

Acquisition cost of membership interests¥34,417

Cash and cash equivalents(775)

Accrued amount of the acquisition cost of membership interests(301)

Net expenditures for acquisition¥33,340(3) Assets and liabilities of Lintec Graphic Films Limited (the other newly acquired consolidated subsidiary through acquisition of shares) at the inceptionof its consolidation, the acquisition cost of its shares and the related expenditures (net) for the acquisition were as follows:
Millions of yen

STRATEGY

2017
Current assets¥ 378

Non-current assets

144

Goodwill

733

Current liabilities(171)

Non-current liabilities(59)

Acquisition cost of shares¥1,024

Cash and cash equivalents(61)

Net expenditures for acquisition¥ 963

3. Assets and liabilities related to finance lease transactions newly recognized for the years ended March 31, 2018 and 2017 were ¥138 million(U.S.$1,308 thousand) and ¥183 million, respectively.

ESG

13. Leases(Lessee’s accounting)For finance lease transactions that transfer ownership, leased assets recognized as property, plant and equipment are mainly production facilities for theyears ended March 31, 2018 and 2017, and are depreciated in the same way as the owned property, plant and equipment.
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, 2018 and 2017. These leased assets are
depreciated to a residual value of zero by the straight-line method using the contract term as the useful life.
The minimum lease payments under noncancellable operating leases as of March 31, 2018 and 2017 were as follows:

Due within 1 year
Due after 1 year
Total

2018
¥ 629

Millions of yen

Thousands of
U.S. dollars

2017
¥ 419

2018
$ 5,928

1,458

595

13,728¥2,088¥1,015$19,656
FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

65

FINANCIAL SECTION

14. 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 loans.
The Group makes use of derivatives only to reduce risk of foreign currency
exchange fluctuations and has a policy of not engaging in derivative transactions
for speculative purposes.
(2) Details of financial instruments and associated risk and risk 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 fromits customers. Regarding the risk pursuant to the internal regulations for
managing its credit exposure and trade receivables, due dates and balances
are managed appropriately for each customer to mitigate risks of uncollectible accounts.
Investment securities are stocks being exposed to market price risk, andthese are mainly the stocks of companies with which the Group has business
relationships and they are periodically confirmed the market value.

All of the trade payables—trade notes and accounts payable—are due
within 1 year.
The Group has commitment line contracts with financial institutions andthe short-term loans payable are raised mainly for business activities andcapital investments.
The long-term loans payable are raised for corporate acquisitions. Interest
rate swaps and interest rate and currency swaps are used to manage
exposure to market risks from changes in interest rates and foreign currency
exchange rate of the long-term loans payable.
The Group is exposed to liquidity risk from its business-related obligations
and loans but the Company and its consolidated subsidiaries prepare andimplement financing plans to manage the liquidity risk.
The Group conducts and manages derivative transactions based oninternal rules and regulations. Executive officer administration division is incharge 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 16, “Derivatives,” do not represent the market risk associatedwith derivative transactions.

2. Fair value and other matters related to financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2018 and 2017 along with their fair value and the variance were shown in the following table.
Thousands of
U.S. dollars

Millions of yen

2018(1) Cash and deposits(2) Trade notes and accounts receivable

Carrying value

Fair value

Variance

Carrying value

Fair value

Variance¥ 58,614¥ 58,614¥—$ 551,721$ 551,721

72,59072,590—683,269

683,269—$—(3) Investment securities
2,160

2,160

—

20,335

20,335—(4) Trade notes and accounts payable(54,678)(54,678)—(514,673)(514,673)—(5) Short-term loans payable(2,351)(2,351)—(22,129)(22,129)—(6) Accrued income taxes(2,889)(2,889)—(27,200)(27,200)—(7) Long-term loans payable(17,381)(17,223)(157)(163,607)(162,123)(1,484)

9

9

—

85

85

—

Other securities(8) Derivatives

Notes: i. Figures shown in parentheses are liability items.
ii. The current portion of long-term loans payable is included in long-term loans payable.
iii. The value of assets and liabilities arising from derivatives is shown by net value.
Millions of yen

2017(1) Cash and deposits(2) Trade notes and accounts receivable

Carrying value

Fair value

Variance¥ 45,060¥ 45,060¥—

66,80166,801—(3) Investment securities
Other securities(4) Trade notes and accounts payable(5) Short-term loans payable

2,519

2,519

—

(45,057)(45,057)

—
—

(641)

(641)

(6) Accrued income taxes(3,098)(3,098)—(7) Long-term loans payable(20,847)(20,888)

41

(37)

(37)

—

(8) Derivatives

Notes: i. Figures shown in parentheses are liability items.
ii. The current portion of long-term loans payable is included in long-term loans payable.
iii. The value of assets and liabilities arising from derivatives is shown by net value.

66

LINTEC ANNUAL REPORT 2018

Note 2: Financial instruments for which obtaining the fair value is deemed to be
extremely difficult:Millions of yen

Thousands of
U.S. dollars

2018

2017

2018

Carrying value

Carrying value

Carrying value

¥583

¥583

$5,488Unlisted stocks

OVERVIEW

Note 1:	Method of computing the fair value of financial instruments, securities and derivatives(1) Cash and deposits; (2) Trade notes and accounts receivable	Since these items are settled in a short period of time and have 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 loans payable; (6) Accrued
income taxes	Since these items are settled in a short period of time and have fair values that are
virtually the same as the carrying value on the ledger, the carrying value has been used.
(7) Long-term loans payable	The fair value of long-term loans payable is measured as the net present value of
estimated cash flows by discounting the amount of principal and interest value using
the assumed interest rate applied to a new similar loan. The fair value of long-termloans payable with variable interest rates hedged by interest rate swaps subject tothe special treatment or interest rate and currency swaps subject to the totaltreatment are calculated based on the net present value of the total amount ofprinciple and interest, accounted for together with the interest rate swap or interest
rate and currency swap transactions, discounted by the interest rate rationallyestimated for a similar loan.
(8) Derivatives
Please see Note 16, “Derivatives.”

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

Thousands of
U.S. dollars

2018

2017

2018

Within 1 year

Within 1 year

Within 1 year

¥ 58,591¥ 45,038$ 551,505

72,590¥131,182

66,801¥111,839

683,269$1,234,774

Cash and deposits
Trade notes and accounts
receivable
Total

STRATEGY

Note 4: Planned redemption amounts after the balance sheet date for borrowings were as follows:
Millions of yen

2018
Within 1 year

Short-term loans payable
Current portion of long-term loans payable
Long-term loans payable
Total¥2,351
2,986—¥5,337

Over 1 year
within 2 years

Over 2 years
within 3 years

Over 3 years
within 4 years

¥

¥

¥

—
—
2,986
¥2,986——
9,177¥9,177

Over 4 years
within 5 years

Over 5 years

¥ —
—
531
¥531

¥ —
—
531
¥531

—
—
1,168
¥1,168

Thousands of
U.S. dollars

2018
Within 1 year

$22,129
28,109—$50,238

Over 2 years
within 3 years

Over 3 years
within 4 years

Over 4 years
within 5 years

Over 5 years

$

$

$

$

$

—
—
28,109$28,109——
86,388$86,388——
11,000$11,000——
5,000$5,000——5,000$5,000ESG

Short-term loans payable
Current portion of long-term loans payable
Long-term loans payable
Total

Over 1 year
within 2 years

Millions of yen

2017
Within 1 year

Short-term loans payable
Current portion of long-term loans payable
Long-term loans payable
Total

¥ 641
3,051
—
¥3,693

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 5 years

¥

¥

¥

¥

¥

—
—
3,058
¥3,058——3,058¥3,058——9,321¥9,321——
1,234¥1,234——
1,121¥1,121FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

67

FINANCIAL SECTION

15. Marketable and Investment Securities
1. The carrying value and acquisition cost of other securities as of March 31, 2018 and 2017 were as follows:
Millions of yen

Thousands of
U.S. dollars

2018
Carrying value

Acquisition cost

Unrealized gain
(loss)

Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks¥1,754

¥ 796

¥957

$16,511$ 7,501$9,009

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

¥1,754

¥ 796

¥957

$16,511$ 7,501$9,009Stocks

¥ 406

¥ 415

¥   (9)$ 3,824$ 3,914

$

Bonds

—

—

—

—

—

Other

—

—

—

—

—

Subtotal

¥ 406

¥ 415

¥   (9)$ 3,824$ 3,914$

		Total¥2,160¥1,212¥947$20,335$11,416$8,919Description

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

(90)
—
—
(90)

Millions of yen

2017
Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks¥2,180¥ 975¥1,205

Bonds

—

—

—

Other

—

—

—

¥2,180¥ 975¥1,205

Stocks

¥ 338

¥ 425

¥   (86)

Bonds

—

—

—

Other

—

—

—

Subtotal

¥ 338

¥ 425

¥   (86)

		Total¥2,519¥1,400¥1,118Description

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

2. Other securities sold during the years ended March 31, 2018 and 2017 were as follows:
Thousands of
U.S. dollars

Millions of yen

2018
Description

Sales amount

Aggregate gains

Aggregate losses

Sales amount

Aggregate gains

Aggregate losses

Stocks

¥536

¥343

¥0

$5,049$3,233

$0

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

¥536

¥343

¥0

$5,049$3,233$0

Total

Millions of yen

2017
Description

Sales amount

Aggregate gains

Aggregate losses

Stocks

¥361

¥190

¥13

Bonds

—

—

—

Other

—

—

—

¥361

¥190

¥13

Total

68

LINTEC ANNUAL REPORT 2018

16. Derivatives
1. Derivatives to which the Company did not apply hedge accounting as of March 31, 2018 and 2017 were as follows:(Currency related)

OVERVIEW

Millions of yen

2018
Contract amounts
Total

Over 1 year

Fair value

Unrealized gain
(loss)

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

¥607

¥—

¥2

¥2

Sell: U.S. dollars (buy Korean won)

107

—

3

3

Sell: Japanese yen (buy Korean won)

62

—

(0)

(0)

Nature of transaction

Off-market transactions

Forward exchange contracts to:

71

—

3

3

¥848

¥—

¥9

¥9

Sell: U.S. dollars (buy Singapore dollars)
Total

Thousands of U.S. dollars

2018
Contract amounts
Nature of transaction

Off-market transactions

Total

Over 1 year

Fair value

Unrealized gain
(loss)

Forward exchange contracts to:$5,719

$—

$25

$25

1,011

—

34

34

Sell: Japanese yen (buy Korean won)

586

—

(3)

(3)

Sell: U.S. dollars (buy Singapore dollars)

671

—

29

29

$7,989

$—

$85

$85

Total

STRATEGY

Sell: U.S. dollars (buy Japanese yen)Sell: U.S. dollars (buy Korean won)Note: Method of computing the fair value is based on information provided by financial institutions at the end of the fiscal year.
Millions of yen

2017
Contract amounts
Nature of transaction

Off-market transactions

Total

Over 1 year

Fair value

Unrealized gain
(loss)¥(14)

Forward exchange contracts to:
¥ 919

¥—

¥(14)

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

58

—

(2)

(2)

Sell: India rupee (buy Japanese yen)

345

—

(19)

(19)

¥1,323

¥—

¥(37)

¥(37)

Total

ESG

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

2. Derivatives to which the Company applied hedge accounting as of March 31, 2018 and 2017 were as follows:(Interest rate related)

Millions of yen

2018
Contract amounts
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori forinterest rate swaps

Interest rate swaps
Variable rate receipt / Fixed rate payment

Long-term loans payable

Total

Over 1 year

Fair value¥2,018¥1,806¥(Note)Thousands of U.S. dollars

2018
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori forinterest rate swaps

Interest rate swaps
Variable rate receipt / Fixed rate payment

Long-term loans payable

Total

Over 1 year

Fair value$19,000$17,000$(Note)FINANCIAL INFORMATION

Contract amounts

Note: Interest rate swaps subject to the Tokurei-shori for interest rate swaps are treated together with the hedged long-term loans payable. Accordingly, the fair value of those interest rate
swaps is included in the fair value of the long-term loans payable.
Millions of yen

2017
Contract amounts
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori forinterest rate swaps

Interest rate swaps
Variable rate receipt / Fixed rate payment

Long-term loans payable

Total

Over 1 year

Fair value¥2,355¥2,131¥(Note)Note: Interest rate swaps subject to the Tokurei-shori for interest rate swaps are treated together with the hedged long-term loans payable. Accordingly, the fair value of those interest rate
swaps is included in the fair value of the long-term loans payable.

LINTEC ANNUAL REPORT 2018

69

FINANCIAL SECTION(Interest rate and currency related)

Millions of yen

2018
Contract amounts
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori and
Furiate-shori for interest
rate and currency swaps

Interest rate and currency swaps
Variable rate receipt / Fixed rate payment
U.S.$ receipt / Japanese ¥ payment

Long-term loans payable

Total

Over 1 year

Fair value¥5,993¥5,405¥(Note)Thousands of U.S. dollars

2018
Contract amounts
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori and
Furiate-shori for interest
rate and currency swaps

Interest rate and currency swaps
Variable rate receipt / Fixed rate payment
U.S.$ receipt / Japanese ¥ payment

Long-term loans payable

Total

Over 1 year

Fair value$56,415$50,883$(Note)Note: Interest rate and currency swaps subject to the Tokurei-shori and Furiate-shori for interest rate and currency swaps are treated together with the hedged long-term loans payable.
Accordingly, the fair value of those interest rate and currency swaps is included in the fair value of the long-term loans payable.
Millions of yen

2017
Contract amounts
Hedge accounting method

Type of derivatives

Major hedged items

The Tokurei-shori and
Furiate-shori for interest
rate and currency swaps

Interest rate and currency swaps
Variable rate receipt / Fixed rate payment
U.S.$ receipt / Japanese ¥ payment

Long-term loans payable

Total

Over 1 year

Fair value¥6,581¥5,993¥(Note)Note: Interest rate and currency swaps subject to the Tokurei-shori and Furiate-shori for interest rate and currency swaps are treated together with the hedged long-term loans payable.
Accordingly, the fair value of those interest rate and currency swaps is included in the fair value of the long-term loans payable.

17. Retirement Benefits
The Company has defined benefit plans of a corporate pension fund plan under the Japanese Defined Benefit Corporate Pension Law and lump-sum
payment plan.
Domestic consolidated subsidiaries have lump-sum payment plans and certain foreign consolidated subsidiaries have defined contribution plans andlump-sum payment plans.
The following summarizes information related to retirement benefits for the years ended March 31, 2018 and 2017.
1. Defined benefit plans(1) Reconciliation statement for the beginning balance and the ending balance of retirement benefit obligations
Millions of yen

Thousands of
U.S. dollars

2018¥36,9652017¥36,5492018$347,939

Service cost

1,795

1,754

16,903

Interest cost

189

187

1,778

Actuarial gains (losses)

(89)

(4)

(846)

Retirement benefits paid

(1,575)(1,570)(14,828)

Increase (decrease) from foreign currency translation

45

(26)

426

Other

68

75

641

¥37,398¥36,965$352,015

Retirement benefit obligations at beginning of year

Retirement benefit obligations at end of year
Note: For some of the consolidated subsidiaries, the simplified method is used to calculate retirement benefit obligations.

70

LINTEC ANNUAL REPORT 2018

(2) Reconciliation statement for the beginning balance and the ending balance of plan assets

2018¥24,603

Thousands of
U.S. dollars

2017¥25,0732018$231,579
6,899

Expected return on plan assets

732

726

Actuarial gains (losses)

63

(239)

598

Contributions from the employer

510

521

4,805

Retirement benefits paid
Plan assets at end of year

(1,518)(1,479)(14,289)¥24,391¥24,603$229,592

OVERVIEW

Plan assets at beginning of year

Millions of yen(3) Reconciliation statement for the ending balance of retirement benefit obligations and plan assets and net defined benefit liability or asset recorded in
the consolidated financial statements
Millions of yen

Thousands of
U.S. dollars

2018¥ 36,565

2017¥ 36,244

2018$ 344,179

Plan assets(24,391)(24,603)(229,592)

12,173

11,641

114,586

832

721

7,836

Net amount of liabilities and assets recorded in the consolidated balance sheet¥ 13,006¥ 12,362$ 122,422

Net defined benefit liability¥ 13,006¥ 12,362$ 122,422―――¥ 13,006¥ 12,362$ 122,422

Millions of yen

Thousands of
U.S. dollars

2017¥1,754
187
(726)
681
(283)
(25)
¥1,5872018$16,903
1,778(6,899)4,354(2,612)
1$13,526

Retirement benefit obligations of an unfunded pension plan

Net defined benefit asset
Net amount of liabilities and assets recorded in the consolidated balance sheet

STRATEGY

Retirement benefit obligations of a funded pension plan(4) Components of retirement benefit expenses

2018¥1,795
189
(732)
462
(277)
0
¥1,437

ESG

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial losses (gains)
Amortization of prior service cost
Other
Retirement benefit expenses for the defined benefit plans

Notes: i. Retirement benefit expenses of consolidated subsidiaries using the simplified method are included in service cost.
ii. Employee’s contributions to the corporate pension fund are not included in the retirement benefit expenses for the defined benefit plans.
iii.	Other than the above retirement benefit costs in defined benefit pension plan, MADICO, INC. records special retirement expenses amount to ¥866 million as “Provision for businessstructure improvement” in Extraordinary loss for the year ended March 31, 2018.

FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

71

FINANCIAL SECTION(5) Remeasurements of defined benefit plans recorded in other comprehensive income
Breakdown of items (before tax effect) recorded in other comprehensive income of remeasurements of defined benefit plans are as follows:

Prior service cost
Actuarial losses (gains)
Total

2018
¥ 277
(616)
¥(338)

Millions of yen

Thousands of
U.S. dollars

2017
¥ 283
(451)
¥(167)

2018$ 2,612(5,803)$(3,190)(6) Remeasurements of defined benefit plans recorded in accumulated other comprehensive income
Breakdown of items (before tax effect) recorded in accumulated other comprehensive income of remeasurements of defined benefit plans are as follows:

Unrecognized prior service cost
Unrecognized actuarial losses (gains)
Total

2018
¥ (267)
4,818¥4,550Millions of yen

Thousands of
U.S. dollars

2017¥ (545)
5,434¥4,8892018$ (2,517)
45,351$42,834(7) Items related to plan assets
1. Breakdown of major items
		 The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2018 and 2017 was as follows:
Bonds
StocksAlternatives
Cash and deposits
Other
Total

2018
69.6%
14.8%
6.6%
5.5%
3.5%
100.0%

2017
52.9%
22.9%
15.9%
5.1%
3.2%
100.0%

Note: Alternatives are mainly investments on hedge funds.

2. Method for determining the expected long-term rate of return on plan assets
		In determining the expected long-term rate of return on plan assets, estimates are considered based on the current and expected allocation of plan
assets and the current and expected long-term rate of return from the various assets comprising the plan assets.
(8) Major actuarial assumptions as of March 31, 2018 and 2017 were as follows:
Discount rate
Expected long-term rate of return on plan assets
Expected salary increase rate

2018
Mainly 0.5%
Mainly 3.5%
Mainly 2.8%

2017
Mainly 0.5%
Mainly 3.5%
Mainly 2.8%

2. Defined contribution plans
Some of the consolidated subsidiaries contributed ¥272 million (U.S. $2,561 thousand) and ¥160 million, for the years ended March 31, 2018 and 2017 to
the defined contribution plans, respectively.

72

LINTEC ANNUAL REPORT 2018

18. Stock Option Plan
Components of stock-based compensation expense for the years ended March 31, 2018 and 2017 were as follows:

Selling, general and administrative expenses

Thousands of
U.S. dollars

2018
¥ 1

2017
¥ 2

2018
$ 17

30

15

289

OVERVIEW

Cost of sales

Millions of yen

The following table summarizes contents of stock options as of March 31, 2018:
The 2006 plan
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

Period of providing service for stock options
Exercise period

Period of providing service for stock options
Exercise period
The 2009 plan
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

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 directorof 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 directorof the Company at the time of grant.
—
From August 25, 2009 to August 24, 2029

LINTEC ANNUAL REPORT 2018

FINANCIAL INFORMATION

Period of providing service for stock options
Exercise period

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 directorof the Company at the time of grant.
—
From August 25, 2007 to August 24, 2027

ESG

The 2008 plan
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

STRATEGY

The 2007 plan
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

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 directorof the Company at the time of grant.
—
From August 26, 2006 to August 25, 2026

73

FINANCIAL SECTION

The 2010 plan
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 2011 plan
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 2012 plan
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 2013 plan
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 2014 plan
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

74

LINTEC ANNUAL REPORT 2018

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 directorof 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 directorof the Company at the time of grant.
—
From August 25, 2011 to August 24, 2031

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 Company
August 7, 2013
Directors, 10 and Executive Officers, 12
Common stock 22,000 shares
August 22, 2013
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 23, 2013 to August 22, 2033

The Company
August 6, 2014
Directors, 10 and Executive Officers, 12
Common stock 18,300 shares
August 21, 2014
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 22, 2014 to August 21, 2034

The 2015 plan
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 2016 plan
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

OVERVIEWThe Company
August 6, 2015
Directors, 11 and Executive Officers, 12
Common stock 14,600 shares
August 21, 2015
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 22, 2015 to August 21, 2035

Period of providing service for stock options
Exercise period
The 2017 plan
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

STRATEGY

The Company
August 9, 2016
Directors, 11 and Executive Officers, 12
Common stock 12,200 shares
August 24, 2016
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 25, 2016 to August 24, 2036

The Company
August 7, 2017
Directors, 11 and Executive Officers, 12
Common stock 14,400 shares
August 22, 2017
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 23, 2017 to August 22, 2037

Period of providing service for stock options
Exercise period

The following tables summarize the scale and movement of stock options for the years ended March 31, 2018 and 2017:(Non-vested stock options)
The 2007
plan

The 2008
plan

The 2009
plan

The 2010
plan

The 2011
plan

The 2012
plan

The 2013
plan

The 2014
plan

The 2015
plan

The 2016
plan

The 2017
plan

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
14,400
—

—

—

—

—

—

—

—

—

—

—

—

14,400

—

—

—

—

—

—

—

—

—

—

—

—

ESG

Stock options outstanding
at April 1, 2017
Stock options granted
Forfeitures	Conversion to vested
stock options
Stock options outstandingat March 31, 2018

(Unit: shares)
The 2006
plan

FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

75

FINANCIAL SECTION(Vested stock options)

(Unit: shares)
The 2006
plan

The 2007
plan

The 2008
plan

The 2009
plan

The 2010
plan

The 2011
plan

The 2012
plan

The 2013
plan

The 2014
plan

The 2015
plan

The 2016
plan

The 2017
plan

3,300

2,900

5,200

7,700

7,200

6,800

13,60020,60017,20014,60012,200

—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
500
—

—
600
—

—
600
—

—
500
—

—
500
—

14,400
—
—

3,300

2,900

5,200

7,700

7,200

6,800

13,10020,00016,60014,10011,70014,400Stock options outstanding
at April 1, 2017
	Conversion fromnon-vested stock
options
Stock options exercised
Forfeitures
Stock options outstandingat March 31, 2018

The following table summarizes the price information of stock options as of March 31, 2018:

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

The 2006
plan

The 2007
plan

The 2008
plan

The 2009
plan

The 2010
plan

The 2011
plan

The 2012
plan

The 2013
plan

The 2014
plan

The 2015
plan

The 2016
plan

The 2017
plan

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

¥

1

—
2,788

1

—
1,947

1

—
1,481

1

—
1,726

1

—
1,474

1

—
1,303

1

3,054
1,203

1

3,054
1,595

1

3,054
1,825

1

3,054
2,283

1

3,054
1,445

1

—
2,261

The fair value of stock options granted during the year ended March 31, 2018 was valued by using the Black-Scholes option pricing model with thefollowing assumptions:
The 2017 plan

34.909%10 years¥66
0.048%

Volatility
Expected remaining period
Expected dividend per share
Risk free interest rate

The expected remaining period for stock options is assumed to be the mid-point of the exercise period.
19. 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 30.86% for the years ended March 31, 2018 and 2017, 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 statement of income forthe years ended March 31, 2018 and 2017 differ from the statutory tax rate for the following reasons: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
Consolidated adjustments of dividend income from consolidated subsidiaries
The impairment loss on goodwill
Other, net
Effective tax rate

76

LINTEC ANNUAL REPORT 2018201830.86%

2017
30.86%

0.35(11.88)0.35(6.25)(2.62)
5.06
12.51
2.12
2.61
33.11%

0.39(16.68)0.37(5.14)(3.28)
1.56
18.12
―
1.03
27.23%

2. The significant components of deferred tax assets and liabilities as of March 31, 2018 and 2017 were as follows:
Thousands of
U.S. dollars

2017

2018

2018
Deferred tax assets:
Accrued bonuses
Accrued enterprise taxes
Operating loss carryforwards
Net defined benefit liability
Retirement benefit trust
Research and development cost
Loss on valuation of inventories
Allowance for doubtful accounts
Unrealized gain
Excess of depreciation expense
Other
		 Gross deferred tax assets
Valuation allowance		Net deferred tax assets

739
157
995
3,904
909
609
180
133
356
275
751
9,012
(1,206)
7,806

¥

699
170
1,107
3,736
1,141
562
269
138
350
331
680
9,188
(959)
8,229

$ 6,963
1,477
9,365
36,754
8,560
5,735
1,702
1,252
3,354
2,593
7,071
84,832(11,351)
73,480

(181)
(290)
(125)
(654)
(36)
(1,287)¥ 6,518

(187)
(343)
(508)
(460)
(75)
(1,575)¥ 6,654(1,711)(2,731)(1,178)(6,158)(341)(12,120)$ 61,360

Millions of yen

Thousands of
U.S. dollars

STRATEGY

Deferred tax liabilities:
Revaluation of fixed assets in accordance with special tax measures
Net unrealized holding gain on securities
Depreciation expense of subsidiaries
Dividend income from consolidated subsidiaries
Other

¥

OVERVIEW

Millions of yen

Note: The net deferred tax assets as of March 31, 2018 and 2017 were included in the following items on the consolidated balance sheets:

Current assets–Deferred tax assets

2018¥1,4832017¥1,6142018$13,962

Noncurrent assets–Deferred tax assets

5,063

47,51491086Noncurrent liabilities–Other

3

13

30

ESG

5,047

Current liabilities–Other

FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

77

FINANCIAL SECTION

20. Business Combinations
No specific disclosure for business combination has been made for the year ended March 31, 2018 because of its immateriality.
21. Asset Retirement Obligations
There is no asset retirement obligation as of March 31, 2018 and 2017.
22. Rental Property
No specific disclosure for rental property has been made as of March 31, 2018 and 2017 because of its immateriality.
23. 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 theperformance of them.
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 products for seals and labels, Labeling machines, Automobile-use adhesive products, Industrial-use adhesive
tapes, Window films, Films for outdoor signs and advertising, Interior finishing mounting films

Electronic and Optical Products

Semiconductor-related adhesive tapes, Semiconductor-related equipment, Multilayer ceramic capacitor-related tapes,
LCD- and OLED display-related adhesive products

Paper and Converted Products

Color papers for envelopes, Colored construction papers, Special function papers, High-grade printing papers,
High-grade papers for paper products, Release papers for adhesive products, Release films for optical-related products,
Casting papers for synthetic leather, Casting papers for carbon fiber composite materials

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.

78

LINTEC ANNUAL REPORT 2018

3. Information on sales and income (loss), assets, and other items by reportable segment for the years ended March 31, 2018 and 2017 are outlined as follows:
Millions of yen

2018Electronic and
OpticalProducts

Paper andConverted
Products

Total¥121,691¥88,882¥38,456¥249,030

57

88

15,571

15,717(15,717)—¥121,748¥88,970¥54,027¥264,747¥(15,717)¥249,030¥

3,040¥11,972¥ 4,996¥ 20,009¥

86¥ 20,095

Depreciation and amortization

¥

3,863

¥ 3,049¥ 2,118

¥

9,031

¥  

—

¥

9,031

Amortization of goodwill

¥

3,427

¥

¥

¥

3,427

¥  

—

¥

3,427

Adjustments

OVERVIEW

Printing andIndustrial Materials
Products

Consolidation

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income¥  —¥249,030

Others——Thousands of U.S. dollars

2018
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total$1,145,438$836,620$361,974$2,344,033

539

832

146,569

147,942(147,942)—$1,145,978$837,452$508,544$2,491,975$(147,942)$2,344,033$

28,622$112,692$ 47,027$ 188,341$

810$ 189,151

Depreciation and amortization$

36,362$ 28,706$ 19,938$

85,007$  —$

85,007

Amortization of goodwill$

32,259$$$32,259$  —$

32,259Adjustments

Consolidation$  $2,344,033

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

STRATEGY

Net sales

Others——

Notes: i. Segment income adjustments show elimination of the amount of intra-segment transactions.
ii. Segment income is adjusted to be reported as operating income in the consolidated statement of income.
iii.	The amounts to be written off as depreciation and amortization of goodwill are allocated among the business segment on the basis of reasonable criteria.
iv. Since companies, offices, and factories serve as the base for administrative classification of segment’s assets, no allocation to the business segment is done.
Millions of yen

2017Electronic and
OpticalProducts

Paper andConverted
Products

Total¥85,661¥83,205¥37,108¥205,975

60

73

15,523

15,657(15,657)—¥85,721¥83,278¥52,632¥221,633¥(15,657)¥205,975¥ 1,672¥ 9,155¥ 5,767¥ 16,595¥(0)¥ 16,595

Depreciation and amortization¥ 2,706¥ 2,748¥ 2,011

¥

7,466

¥  

—

¥

7,466

Amortization of goodwill

¥

¥

¥

¥

315

¥  

—

¥

315

Adjustments

ESG

Printing andIndustrial Materials
Products

Consolidation

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income¥  —¥205,975

Others315——

LINTEC ANNUAL REPORT 2018

FINANCIAL INFORMATION

Notes: i. Segment income adjustments show elimination of the amount of intra-segment transactions.
ii. Segment income is adjusted to be reported as operating income in the consolidated statement of income.
iii. The amounts to be written off as depreciation and amortization of goodwill are allocated among the business segment on the basis of reasonable criteria.
iv. Since companies, offices, and factories serve as the base for administrative classification of segment’s assets, no allocation to the business segment is done.

79FINANCIAL SECTION

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

2018
Sales

Japan

Asia

U.S.A.

OthersTotal¥130,408¥70,880¥39,295¥8,445¥249,030

Thousands of U.S. dollars

2018
Sales

Japan

Asia

U.S.A.

OthersTotal$1,227,488$667,174$369,873$79,497$2,344,033

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

2017
Sales

Japan

Asia

U.S.A.

OthersTotal¥128,203¥65,142¥8,076¥4,552¥205,975

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

(Changes in presentation)
Sales of “U.S.A.,” which was included in “Others” in the previous consolidated fiscal year, is separately presented in this consolidated fiscal year due to its
increased quantitative materiality. To reflect this change in presentation, ¥12,629 million presented as “Others” in the consolidated statement of incomeof the previous fiscal year has been reclassified into ¥8,076 million of “U.S.A.” and ¥4,552 million of “Others.”
Millions of yen

2018
Property, plant and equipment

Japan

Asia

U.S.A.

OthersTotal¥55,143¥10,570¥9,173¥448¥75,336

Thousands of U.S. dollars

2018
Property, plant and equipment

Japan

Asia

U.S.A.

OthersTotal$519,044$99,499$86,348$4,221$709,114

Millions of yen

2017
Property, plant and equipment

Japan

Asia

U.S.A.

OthersTotal¥54,155¥11,119¥8,129¥466¥73,871

3. Information by principal customers
Since there are no outside customers that make up more than 10% of net sales on the consolidated statement of income for the year ended March 31,
2018, the information has been omitted.
Millions of yen

80

Name of the customer

Related reportable segment

2017
Sales

Sumitomo Chemical Company, Limited

Electronic and Optical Products¥22,210LINTEC ANNUAL REPORT 2018

Information on impairment losses on noncurrent assets by reportable segment
Millions of yen

2018Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥1,041OVERVIEW

Impairment loss

Printing andIndustrial Materials
Products

Thousands of U.S. dollars

2018

Impairment loss

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

$—

$—

$—

$—

$9,804

Note: 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

2017Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥34

STRATEGY

Impairment loss

Printing andIndustrial Materials
Products

Information related to the amount of amortization of goodwill and the unamortized amount of goodwill by reportable segment
Millions of yen

2018

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥29,189

Thousands of U.S. dollars

2018Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

$—

$—

$—

$—

$274,745

ESG

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Notes: i. Since the Company and its consolidated subsidiaries disclose the same information of the amount of amortization of goodwill in the reportable segment information section, it has been omitted.
ii. 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

2017

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥34,558
FINANCIAL INFORMATION

Notes: i. Since the Company and its consolidated subsidiaries disclose the same information of the amount of amortization of goodwill in the reportable segment information section, it has been omitted.
ii. 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, 2018 and 2017.

LINTEC ANNUAL REPORT 201881

FINANCIAL SECTION

24. Related Party Transactions
The Company and its consolidated subsidiaries have transactions with NP Trading Co., Ltd., a subsidiary of Nippon Paper Industries Co., Ltd.
The transactions between the companies for the years ended March 31, 2018 and 2017 were as follows:
Millions of yen

2018

2017

2018

¥11,364¥11,422$106,971

4,907

4,665

46,196

Millions of yen

Thousands of
U.S. dollars

For the year
Sales of fine & specialty paper products and converted products

Thousands of
U.S. dollars

Purchase of stencil, chemicals and equipment

2018

2017

2018

Trade notes and accounts receivable¥4,976¥ 3,941$46,842

Trade notes and accounts payable

2,357

1,835

22,189

12

3

118

Yen

U.S. dollars

At year-end

Other liabilities

Related party transactions are carried out on an arm’s length basis similar to third party transactions.
25. Amounts per Share
The amounts per share of net assets and net income as of and for the years ended March 31, 2018 and 2017 were as follows:
2018

2017

2018

¥2,573.69¥2,465.43$24.23

Net income (basic)

156.02158.691.47

Net income (diluted)

155.76158.46

1.47

Millions of yen

Thousands of
U.S. dollars

2018

2017

2018

¥11,257—¥11,257
72,151¥11,450—¥11,450
72,152$105,960—$105,960
72,151¥¥$

Net assets

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

Net income (basic) per share:
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent attributable to common shares
Weighted-average number of common shares issued during the year (thousand)Net income (diluted) per share:
Adjustment of profit attributable to owners of parent related to dilutive securities
Adjustment of dilutive securities (thousand)		 [Share subscription rights (thousand)]

—
119
[119]

—
106
[106]

   —
119
[119]

(2) Net assets per share
Millions of yen

Total net assets
Amount deducted from total net assets[Share subscription rights][Non-controlling interests]
Net assets attributable to common shares
Number of shares of common stock outstanding used in calculation of net assets per share (thousand)82

LINTEC ANNUAL REPORT 2018

Thousands of
U.S. dollars

2018

2017

2018

¥186,420
718
[214]
[503]
¥185,702
72,154¥178,690
806
[186]
[619]
¥177,884
72,151$1,754,713
6,763[2,022][4,740]$1,747,949
72,154

Thousands of
U.S. dollars

Millions of yen

2018¥ 2,351
2,986
14,395¥19,732

Short-term loans payable
Current portion of long-term loans payable
Long-term loans payable

OVERVIEW

26. Short-Term loans payable, Long-Term loans payable 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 at annualinterest rates from 1.00% to 2.07% at March 31, 2018 and from 0.51% to 2.05% at March 31, 2017.
Short-term and long-term loans payable as of March 31, 2018 and 2017 consisted of the following:
2017

2018

641
3,051
17,795¥21,488$ 22,129
28,109135,497$185,736

Millions of yen

Thousands of
U.S. dollars¥

Other interest-bearing debts as of March 31, 2018 and 2017 consisted of the following:

Short-term lease obligation
Long-term lease obligation

2018

2017

2018

¥188
216

¥201
277

$1,774
2,040

Millions of yen

STRATEGY

Planned repayment amounts after the balance sheet date (March 31, 2018) for long-term loans payable and lease obligation are as follows:
Thousands of U.S. dollars

2018Long-term loans payable
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¥2,986¥9,177¥1,168¥531$28,109$86,388$11,000$5,000

122

50

29

12

1,154

476

281

120

27. Subsequent Event
The following distribution of retained earnings was approved at a meeting of the board of directors held on May 9, 2018.
Millions of yen

Thousands of
U.S. dollars¥2,381$22,4122018
Cash dividends (¥33 per share)

ESG
FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 2018

83

FINANCIAL SECTIONManagement’s Report on Internal Control
over Financial Reporting

Basic Framework of Internal Control over Financial Reporting
Hiroyuki Nishio, Representative Director, President, CEO and COO of LINTEC Corporation, and Yoichi Shibano, Executive Officer and Chief Financial Officerof LINTEC Corporation, are responsible for designing and operating adequate internal control over financial reporting for consolidated financial statementsof LINTEC Corporation (the “Company”) and consolidated subsidiaries in accordance with the basic framework set forth in “Standards and PracticeStandards 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 awhole. Internal control over financial reporting for consolidated financial statements may not completely prevent or detect misstatements in financial reporting.
Scope of Assessment, Assessment Date and Assessment Procedure
We assessed the effectiveness of internal control over financial reporting for the accompanying consolidated financial statements as of March 31, 2018
in accordance with the standards for assessment of internal control over financial reporting generally accepted in Japan. For this assessment, we firstevaluated the company-level controls which would have a material impact on the reliability of overall financial reporting on 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 controls that 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 the Company and its 22 consolidated
subsidiaries. We excluded 18 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 2 business locations 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, 2017. For the
Significant Business Locations, we primarily included business processes related to sales, accounts receivable, and inventory in the scope of assessment
as the aforementioned accounts were closely associated with the Company’s business objectives. In addition, we included certain business processes inthe 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 over financial
reporting for the accompanying consolidated financial statements as of March 31, 2018 was effective.

84

LINTEC ANNUAL REPORT 2018

Report of Independent Auditors

OVERVIEWSTRATEGYESG
FINANCIAL INFORMATION

LINTEC ANNUAL REPORT 201885

FINANCIAL SECTION

86

LINTEC ANNUAL REPORT 2018

Investor Information As of March 31, 2018

Major Subsidiaries * Consolidated Subsidiary
Domestic

Head Office23-23, Honcho, Itabashi-ku, Tokyo 173-0001, Japan
Phone: +81-3-5248-7711 Fax: +81-3-5248-7760
URL: http://www.lintec-global.com/
Established
October 15, 1934
Fiscal Year-End
March 31
Net Assets¥186,420 million
Common Stock
Authorized: 300,000,000 shares
Issued: 76,564,240 shares
Stock Listing
Tokyo Stock Exchange, 1st Section
Securities Code: 7966

Number of Employees
4,794 (Consolidated)
2,558 (Parent company only)
Major Shareholders
Nippon Paper Industries Co., Ltd.
30.12%
Japan Trustee Services Bank, Ltd. (Trust Account)
5.12%
The Master Trust Bank of Japan, Ltd. (Trust Account)
3.60%
National Mutual Insurance Federation of Agricultural Cooperatives 3.12%
Tamie Shoji
2.49%

ESG

Ownership and Distribution of Shares

Overseas
LINTEC USA HOLDING, INC.*
LINTEC OF AMERICA, INC.*
MACTAC AMERICAS, LLC*
MADICO, INC.*
VDI, LLC*
MACTAC MEXICO, S.A. DE C.V.*
MACTAC CANADA ULC*LINTEC EUROPE B.V.*
LINTEC EUROPE (UK) LIMITED*
LINTEC ADVANCED TECHNOLOGIES (EUROPE) GMBH*
LINTEC (SUZHOU) TECH CORPORATION*
LINTEC PRINTING & TECHNOLOGY (TIANJIN) CORPORATION*
LINTEC ADVANCED TECHNOLOGIES (SHANGHAI), INC.*
LINTEC SPECIALITY FILMS (TAIWAN), INC.*
LINTEC HI-TECH (TAIWAN), INC.*
LINTEC ADVANCED TECHNOLOGIES (TAIWAN), INC.*
LINTEC KOREA, INC.*
LINTEC SPECIALITY FILMS (KOREA), INC.*
LINTEC ADVANCED TECHNOLOGIES (KOREA), INC.*
LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED*
LINTEC SINGAPORE PRIVATE LIMITED*
PT. LINTEC INDONESIA*
PT. LINTEC JAKARTA*LINTEC (THAILAND) CO., LTD.*
LINTEC INDUSTRIES (MALAYSIA) SDN. BHD.*
LINTEC INDUSTRIES (SARAWAK) SDN. BHD.*
LINTEC KUALA LUMPUR SDN. BHD.*
LINTEC ADVANCED TECHNOLOGIES (MALAYSIA) SDN. BHD.*
LINTEC VIETNAM CO., LTD.*
LINTEC HANOI VIETNAM CO., LTD.*
LINTEC ADVANCED TECHNOLOGIES (PHILIPPINES), INC.*
LINTEC PHILIPPINES (PEZA), INC.*
LINTEC INDIA PRIVATE LIMITED*STRATEGY

Shareholder Register Agent for Common Stock
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku,
Tokyo 100-8212, JapanOVERVIEW

LINTEC COMMERCE, INC.*
LINTEC SIGN SYSTEM, INC.*SHONAN LINTEC KAKO, INC.*
LINTEC SERVICES, INC.
LINTEC CUSTOMER SERVICE, INC.
PRINTEC, INC.
TOKYO LINTEC KAKO, INC.

Share Price / Trading Volume
Share Price
¥

3,500

22.12%
0.60%
33.17%
22.43%
15.92%
5.76%

3,000
2,500
2,000
1,500

FINANCIAL INFORMATION

Financial Institutions
Securities Companies
Other Companies
Overseas Companies
Individuals and Other
Treasury Stock0
Trading Volume
Million shares

10
8
6
4
2
0

Apr. 2015

Apr. 2016

Apr. 2017

LINTEC ANNUAL REPORT 201887

L INTEC Corporation

LINTEC Corporation
23-23, Honcho, Itabashi-ku,
Tokyo 173-0001, Japanwww.lintec-global.com/

Annual Report 2018

Printed on LINTEC high-grade printing paper and color kraft paper

Printed in Japan