LINTECANNUALREPORT2016

For the fiscal year
ended March 31, 2016

SOLID
FOUNDATION,SUSTAINABLE
FUTURE
LINTEC

Contents
1 COVER STORY—OUR VALUE CREATION
8 Performance Highlights

Editorial Policy
This report is meant to help shareholders and other investors
understand the LINTEC Group and its quest to achieve sustainablegrowth and contribute to the further development of society as a whole.

10 MANAGEMENT STRATEGY

Based on the International Integrated Reporting Framework released

		 – 10 A Message from the President

by the International Integrated Reporting Council in December 2013, in		– 15 Business Overview

addition to performance and financial information, this report also		– 22 Special Feature

introduces the technological capabilities, human resources, and other				 Front Lines of R&D“intangible assets” accumulated by the LINTEC Group that are of the				 —Creation of Innovative New Products

variety not listed on the financial statements.

26 THE BASE THAT SUPPORTS GROWTH
		 – 26 R&D Activities and Intellectual Property
		 – 28 Human Resources		 – 29 Environmental Preservation
		 – 30 Partnerships
		 – 31 Social Contribution Activities

Information that could not be contained within this report is available on
the following websites.
IR Website

CSR Website

http://www.lintec-global.com/ir/

http://www.lintec-global.com/csr/

		– 32 Corporate Governance		– 38 Corporate Officers
40 FINANCIAL SECTION
		 – 41 Management’s Discussion and Analysis
		– 43 Operating Risks
		– 44 Financial Summary		 – 46 Consolidated Balance Sheet		 – 48 Consolidated Statement of Income		 – 48 Consolidated Statement of Comprehensive Income		 – 49 Consolidated Statement of Changes in Net Assets
		 – 50 Consolidated Statement of Cash Flows
		 – 51 Notes to Consolidated Financial Statements		 – 69	Management’s Report on Internal Control
over Financial Reporting		 – 70 Report of Independent Auditors
72 Investor Information

LINTEC ANNUAL REPORT 2016

REPORTING PERIODThis report covers the period between April 1, 2015 and March 31, 2016.
However, some of the information includes content from April 2016 onward.
FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements, such as forecasts of business results,
based on information currently held and assumptions that have been judged as reasonable
by the Company. The Company cannot guarantee the accuracy of these statements ordefinitively assure the realization of future numerical targets and policies. Actual businessresults, etc., may vary due to various factors and circumstances.

:: COVER STORYOURVALUE CREATIONAs a leading company in the fields of adhesive products and specialty papers,
the LINTEC Group has developed a diverse range of products. Technological capabilities
and human resources fostered throughout a long history have driven this progress.
“Linkage” and “Technology” — The name LINTEC symbolizes the commitment of all
employees to opening up new business fields through the linking of people and technologies and playing a role on the global stage. Reflecting our company motto, we
believe that sincerity towards all stakeholders and taking on new product developmentwith a determination to innovate are essential characteristics for a manufacturer.
Based on this belief, the LINTEC Group will continue to make dramatic progress.

Company Motto

Sincerity and Creativity

Mission Statement
The company name LINTEC derives from “linkage” and “technology,” two key components of our business philosophy, which emphasizes theimportance of close relations, inside and outside the company, and leading-edge R&D programs. By bringing these together to develop innovative solutions, we have established a reputation in Japan and overseas as a dynamic and reliable company that contributes to the prosperity of
our stakeholders, to the growth of our industry, and to a brighter future for society as a whole. And underpinning all of our business activities isan unwavering emphasis on “Sincerity and Creativity,” the twin values enshrined in our company motto.

For tomorrow we build today

LINTEC ANNUAL REPORT 20161

:: COVER STORYLINTEC’s History
From the time of its establishment in 1927 as FUJI SHOKAI, the LINTEC Group has been developing leading-edge
technologies and products and steadily broadening its business field. Since the 1990 merger of three companies
to form LINTEC Corporation, the Group has been stepping up globalization. Today, LINTEC products play
important roles in a wide range of countries.

“A-100 type”
label printing machine

Gummed tape

1920s to 60s

1970s to 80s

STAGE OF CREATION– STAGE OF BUSINESS BASE BUILDING

STAGE OF ENTRY INTOGROWTH BUSINESSES

Established in 1927 as a manufacturer of gummed tape forIn the early 1970s, we started developing label printing machines

packaging, FUJI SHOKAI reorganized to form FUJI SHIKO

and began operations in China. In the late 1970s, we developed

CORPORATION in 1934 and began operations in earnest. At thatcolored adhesive films for use in body stripe stickers on motor-

time, demand was rising rapidly for cardboard boxes to replace

cycles in response to the growth in domestic motorcycle sales. In

wooden boxes in the transport of foods and other goods. Thisaddition, the rapidly increasing need for films for such applications

trend spurred demand for gummed tape to seal cardboard boxes.

as outdoor signs led to the widespread adoption of our special

In 1960, we began selling adhesive papers for seals and labels

adhesive films in the motorcycle, automobile, and interior andand subsequently entered the adhesive film field, thereby laying

exterior decoration fields.

the foundations of our current mainstay businesses.

In 1984, we changed our name to FSK CORPORATION. In 1986,
we entered the semiconductor field by developing an ultraviolet(UV)-curable dicing tape that allows for adhesive strength to becontrolled by irradiation of UV rays.

Time of establishment

2

LINTEC ANNUAL REPORT 2016

UV-curable dicing tapeOptically functional films
for LCDs

LINTEC KOREA, INC.

1990s

2000s to today

SECOND STAGE OF CREATIONSTAGE OF GROWTH ACCELERATIONIn April 1990, FSK merged with SHIKOKU PAPER CO., LTD., a

Since the turn of the century, the LINTEC Group has accelerated

supplier of release papers and other items, and SOHKEN KAKO

globalization of its businesses by establishing new manufactur-CO., LTD., another manufacturer of adhesive materials, resulting

ing bases in China, Taiwan, South Korea, Malaysia, and Thailand.

in a fresh start as LINTEC Corporation.

At the same time, we have reinforced manufacturing and sales

In 1991, we entered the field of optically functional films for

systems through such measures as expanding our network ofliquid crystal displays (LCDs). Subsequently, we established asales bases that have warehouses and slitting facilities. In 2015,

base in Singapore—the first of a series of bases that we estab-

we established a regional headquarters in Singapore to increase

lished in Southeast Asia and which are the pillars of our current

our competitiveness in the rapidly growing Southeast Asian andoperations in the region. In this manner, we globalized our

Indian markets. In the same year, we strengthened R&D capa-

business. Also, 1995 saw the completion of the building for thebilities even further by establishing the Advanced Technology

Research & Development Division’s research center, which leads

Building adjacent to our existing research center in Japan.

our technological development.

Research Center

Advanced Technology
Building

LINTEC ANNUAL REPORT 20163

:::: COVER
COVER STORY
STORY

Aiming to realize the mass production of new products more rapidly, we have installed a rangeof the latest, large-scale pilot coaters at the Advanced Technology Building, completed in 2015.

R&D
Expenses(Fiscal year ended
March 31, 2016)¥7.6

billionAccumulated

TECHNOLOGICALCAPABILITIESAs a technology-centered company, we create innovative products that cater to customer needs by fusing four core technologies in a
sophisticated manner: adhesive applications, surface improvement, system development, and specialty papers and release materials
production. The Research & Development Division’s research center has approximately 200 research personnel and is responsible for
product development. We are bolstering development capabilities to shorten lead times for mass production start-ups and establish
new technologies.

4

LINTEC ANNUAL REPORT 2016

Our research and development is based on “market dialogue,” which entails research personnel
accompanying sales personnel when they visit customers and communicating directly with them.

HUMAN
RESOURCES

that Create Innovative Products
The LINTEC Group has inherited a tradition of valuing communication
and uninhibited discussion. While unity and teamwork are importantparts of our corporate culture, we respect each employee’s individuality.
For many years, “innovation” has been a keyword in our medium-termbusiness plans. Consequently, a mind-set that avoids complacency andtakes on ambitious initiatives has become common among employees.
Currently, with our sights set on further business expansion, we arefocusing on fostering personnel who can work globally.

No. of
Employees(as of March 31, 2016)

4,246
LINTEC ANNUAL REPORT 20165

:: COVER STORY

Business Model that Realizes

SUSTAINABLE
GROWTHDuring the roughly 90 years since our establishment, original technological capabilities and human resources have enabled us to market
an array of different products across a wide range of fields, stretching from products related to food and everyday goods through toelectronics-related products. We aim to sustain growth by putting the customer first and using fresh ideas to develop and provide highvalue-added products that cater to diverse needs.

Through our showrooms and website, we work to deepen
stakeholder understanding of our original products and technologies.

The LINTEC Group’s Advantages—Integrated Production System for Adhesive Products and Provision of Comprehensive Solutions
The LINTEC Group has realized an integrated production

catering to needs in diverse fields. Also, for areas other thansystem for adhesive products. In addition to developing adhe-adhesive products, we bring to market numerous uniquesives and related coating processes, we have independently

products, such as industrial-use release papers and films asestablished a variety of technologies that enable operations

well as specialty papers that are designed for use withcovering the manufacture of base paper for release papers

upstream technologies.

through to the development of release materials and related

Meanwhile, we develop equipment that maximizes the properties

coating processes as well as facestock coating processes. Ourof our adhesive materials. These include label printing machines,

ability to manufacture and procure release papers and films

labeling machines for the automated application of labels tofor adhesive products in-house gives us advantages in terms of

packaging, and semiconductor-related equipment. In this way,quality, costs, and delivery lead times. Moreover, by combining

we offer comprehensive solutions that incorporate materials

various processing technologies, we create adhesive products

and equipment and which provide us with another advantage.

Integrated Production System
for Adhesive Products

Surface Improvement Processing

Adhesive Development andCoating, and Bonding

Surface Improvement
Facestock
Adhesive

Release Agent Development
and Coating
Papermaking

Release Agent
Base Paper

Related Equipment Development

Base Paper / Film

Printing
and Industrial
Materials
Products

Electronic
and Optical
Products

Paper
and Converted
Products

An Array of Products from Three Business Segments
The LINTEC Group comprises three business segments: Printing and Industrial Materials Products, Electronic and Optical
Products, and Paper and Converted Products, which roll out a diverse selection of products that respond to mainstay and growthareas. We supply a wide range of industries without being dependent on a particular industry. This business structure enables us
to generate earnings stably because we are not susceptible to the market volatility of any one industry.

Performance Highlights
LINTEC Corporation and its consolidated subsidiaries
Fiscal years ended March 31

Net Sales

Operating Income / Operating Profit Margin¥ Billion
250¥210.5210.5
billion200
150¥ Billion
25

Operating Income¥17.7

billionOperating Profit Margin

8.4

100

%

50
0

2012

2013

2014

2015

20

17.7

15

12
9

8.4

10

6

5

3

0

2016

%
15

2012

2013

2014

2015

2016

0

Operating Income
Operating Profit Margin (right)

Profit Attributable to Owners of Parent / Return on Equity (ROE)¥ Billion
15

Profit Attributableto Owners of Parent

¥10.9

%
10

12

billion10.9 86.4

9¥151.07

¥
60

54

160

151.07 48

120

36

80

24

40

12

Cash Dividends per Share

%

6

4

3

2

0

2012

2013

2014

2015

2016

¥240.7billionbillion

2013

2014

2015

2016

Net Income per Share
Cash Dividends per Share (right)

0

Cash Flows
240.7

Net Cash Provided
by Operating Activities

150

¥19.9

100

Net Cash Used in
Investing Activities

200

172.1

2012

2013

Total Assets
Net Assets

2014

2015

2016

¥ Billion
30

19.9

20

billion¥(9.9)

50
0

LINTEC ANNUAL REPORT 2016

2012

ROE (right)

Net Assets¥172.10Profit Attributable to Owners of Parent¥ Billion
250

Total Assets¥54

0Total Assets / Net Assets

8

¥
200

Net Income per Share

6

ROE

6.4

Net Income per Share / Cash Dividends per Share0billion

(4.0)

–10
–20

Net Cash Used in
Financing Activities¥(4.0)

10

(9.9)
2012

2013

2014

2015

2016

Net Cash Provided by Operating Activities

billion

Net Cash Used in Investing Activities
Net Cash Used in Financing Activities

P. 44
Financial Summary
Please see pages 44–45.

Capital Expenditures

Depreciation and Amortization¥ Billion
15

¥13.2

billion

13.2

12billion

6

6

3

3

2012

2013

2014

2015

2012

2013

2014

2015

2016

Number of Employees¥ Billion
10

5,000

7.6

8

4,246

4,246
4,000
3,000
2,000

4

1,000

2
0

2012

2013

2014

2015

0

2016

CO2 Emissions

2012

2013

2014

2015

2016

Toluene Handling Volume / Toluene Emission Volume
Thousand tons
250

thousand tons

8.8

0

2016

6

200

12
9

R&D Expenses

billion

¥8.8

9

0

¥7.6

¥ Billion
15

Toluene Handling Volume

200

200

7,436

tons

150

7,436

8,000
6,000

Toluene Emission Volume

441

100
50
0

Tons
10,000

4,000

tons

2,000

441
2012

2013

2014

2015

2016

0

2012

2013

2014

2015

2016

Toluene Handling Volume
Toluene Emission Volume

LINTEC ANNUAL REPORT 20169

:: MANAGEMENT STRATEGY

A Message from the President

Hiroyuki Nishio
Representative Director
President, CEO and COO

10

LINTEC ANNUAL REPORT 2016

Review of Performance in the Fiscal Year Ended March 31, 2016

Final profit declined due to foreign exchange losses and an increase
in total extraordinary losses
In the fiscal year ended March 31, 2016, the second year of three-year
medium-term business plan, LINTEC INNOVATION PLAN 2016 (LIP-2016),
higher demand for smartphones, which grew sales in Electronic and Optical
Products; yen depreciation; and falling raw material and fuel prices supported
business results. However, the appearance of foreign exchange losses due toyen appreciation from the beginning of 2016 and the recognition of extraordinary losses for subsidiaries in the United States and Indonesia affected
earnings negatively.
As a result, although net sales and operating income rose, final profit
declined. The Group posted year-on-year increases of 1.6% in net sales, to¥210.5 billion, and 4.8% in operating income, to ¥17.7 billion, while profit attributable to owners of parent decreased 6.5%, to ¥10.9 billion.
Initiatives in the Second Year of LIP-2016 (1)Advancing business development globally produced benefits,
but tasks remain
In the fiscal year ended March 31, 2016, we continued efforts that have beenongoing since LIP-2016’s first year to tackle a range of measures based on theplan’s five key initiatives. Efforts to strengthen and expand overseas businesses
focused on expanding manufacturing, sales, and delivery capabilities, primarilyin Southeast Asia and India. In conjunction with these efforts, in Singapore weestablished LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATELIMITED, which is responsible for preparing and implementing comprehensive
business strategies in Southeast Asia and India. We will increase competitiveness further by building an optimal production system and improving the efficiency of local raw material procurement. In addition, in Europe we set out ourlargest ever booth at the world’s biggest label-related exhibition, Labelexpo
Europe 2015, held in Belgium in autumn last year. Recognition of our brand isdefinitely rising in the European market, and we intend to actively take advantage of this recognition to attract new customers.
However, our efforts to rebuild U.S. subsidiary, MADICO, INC., which has
continued to record lackluster business results, did not proceed as planned.
Moreover, the company’s mainstay window films performed sluggishly in the
Chinese market, moving the company further into the red. Also, our main
production base for adhesive and other products in Southeast Asia, PT. LINTEC
INDONESIA, temporarily suspended operations due to strike action. In relation
to the two subsidiaries, we incurred extraordinary loss of more than ¥0.8 billion.
Thus, significant issues remain in this regard.

Labelexpo Europe 2015

LINTEC ANNUAL REPORT 201611

:: MANAGEMENT STRATEGY

A Message from the President

LIP-2016 Key Initiatives
1. Further promote global development(1)	Expand overseas businesses with a particular focus on Asian region(2) Establish firm business foundations in new regions

2. 	Create innovative new products that will support the next generation(1) Explore new markets and demand by creating new products(2)	Enhance the base of our research and development in order to create new products

3. Transform into a robust corporate structure(1) Strengthen cost competitiveness(2) Select and concentrate our management resources

4. Promote strategic M&A(1) Clarify the targets that are suited to a growth strategy(2) Strengthen the system to promote M&A

5. Foster human resources(1) Secure and foster global human resources(2) Implement continuous stratified training

Initiatives in the Second Year of LIP-2016 (2)We concentrated efforts on creating innovative new products
while actively implementing capital investment
Various types of newly developed adhesive products for seals and labels forwhich we undertook a simultaneous global unveiling at the exhibition in Belgium
met with a favorable reception, and we have begun the staged marketing ofthese products in Japan and overseas. Also, the full-fledged adoption andpractical application of leading-edge high-barrier films and light diffusion films
that we have developed is now within sight. Further, the seeds of products withthe potential to become future mainstays of operations are emerging steadily,such as thermoelectric sheets and new transparent conductive films for organic
electro luminescence lighting and thin-film solar cells. In other initiatives, our
U.S. R&D base, the Nano-Science & Technology Center, is conducting researchin new areas that are completely different from our existing technologicalfields, including technology for processing carbon nanotube into sheets andproducts related to artificial muscle. These initiatives are expected to contributesignificantly to the LINTEC Group’s business results in the future.

12

LINTEC ANNUAL REPORT 2016

In addition, the beginning of operations in earnest at the Advanced Technology
Building adjacent to our existing research center—which required an investmentof approximately ¥6.0 billion—is a major step toward the next stage of growth for
the Group. We will take full advantage of the new annex’s large-scale pilot coaters
and state-of-the-art analysis equipment to accelerate the development of new
products. As for manufacturing, we are actively undertaking large-scale capital
investment at bases in Japan and overseas, including the Kumagaya Plant in
Saitama Prefecture, the Shingu Plant in Hyogo Prefecture, and LINTEC(THAILAND) CO., LTD., with a view to increasing production efficiency and capacity and enabling the mass production of newly developed products.

New building for producing optically function films(Shingu Plant)

Performance Outlook for the Fiscal Year Ending March 31, 2017

We expect to achieve operating income of ¥20.0 billion
by rebuilding subsidiaries
In the fiscal year ending March 31, 2017, we will step up efforts to grow sales
and reduce costs in Japan and overseas. Regarding the two overseas subsidiaries mentioned previously, we will rationalize the business management of
MADICO further and rebuild the supply capabilities of LINTEC INDONESIA
while supporting production through bases in Japan and Thailand. Also, inthe current fiscal year we anticipate significant yen appreciation year-on-year,
which will affect business results negatively. On the other hand, we expect
cheaper raw materials and fuel and a change in the depreciation method forproperty, plant and equipment to be beneficial.
As a result, in the fiscal year ending March 31, 2017, we project year-on-yearincreases of 2.1% in net sales, to ¥215.0 billion; 13.0% in operating income, to ¥20.0
billion; and 23.9% in profit attributable to owners of parent, to ¥13.5 billion. While
we are unlikely to reach LIP-2016’s final numerical target of ¥240.0 billion for net
sales, we believe operating income of ¥20.0 billion is well within reach. Further,although this performance outlook does not reflect M&A activities, we are always
considering M&A activities that will help us expand sales channels, acquire

Performance Outlook for
the Fiscal Year Ending March 31,2017 (year-on-year)
Net Sales:¥215.0 billion (+2.1%)
Operating Income:¥20.0 billion (+13.0%)
Profit Attributable to
Owners of Parent:¥13.5 billion (+23.9%)

technological capabilities, or realize future growth, and we will continue to do so.
Shareholder Returns

In the current fiscal year, we plan to increase the dividend pershare by ¥12, to ¥66
LINTEC regards enhancement of return of profits to shareholders as one of its
most important management issues. From the perspective of distributing profits,
the Company fundamentally aims to provide stable and continued returns after
consideration of each fiscal year’s consolidated performance while strengthening
its management base. Adhering to this basic policy, the year-end dividend for the
fiscal year ended March 31, 2016, was set at ¥27 and, in combination with the

LINTEC ANNUAL REPORT 201613

:: MANAGEMENT STRATEGY

A Message from the President

interim dividend of ¥27, dividends for the full year totaled ¥54, an increase of ¥6

Cash Dividends per Sharefrom the previous year.

¥
75

With regard to dividend payments for the fiscal year ending March 31, 2017,
based on projections of consolidated profit attributable to owners of parent of¥13.5 billion, we intend to increase dividend payments by ¥12 per share, to ¥66.
As we work to improve our corporate performance in the coming years, we aim
to actively realize shareholder returns through cash dividends.
In Closing

Based on technological capabilities and human resources,
we will enhance corporate value
We will work to make the current fiscal year, the final year of LIP-2016, a year to
consummate the plan in which we make sure to reap the benefits of measurestaken so far to prepare us for the next three-year medium-term business plan.
Business conditions are challenging. However, keeping the tasks identified in theplan’s second year firmly in mind, all Group employees will make a concerted
effort to advance toward the achievement of goals. I want to make full use of thevaluable time left to enhance a range of measures and establish foundations forour next medium-term business plan, in which we will aim for ROE above 10%.
Further, to heighten corporate value going forward, technological capabilities
and human resources will be indispensable. As well as continuing to strengthening research and development, we will concentrate efforts on fostering
personnel able to work globally, encouraging female employees to play importantroles, and utilizing diverse human resources. Forming the basis of the Group,
employees, in some sense, are the Group. Therefore, we will make particularefforts to ensure all Group employees reflect our values: a customer-first mind-set
and an emphasis on morality over profit. In accordance with our company motto,“Sincerity and Creativity,” we will continue advancing corporate social responsibility (CSR)-based management that is considerate of environmental, social, andgovernance (ESG) concerns while remaining focused on growing with society.
As we move forward, we would like to ask our shareholders and investors fortheir continued support.
August 2016

Hiroyuki Nishio
Representative Director
President, CEO and COO

14

LINTEC ANNUAL REPORT 2016

66

60

54

45
30
15
0

2013

2014

2015

2016 2017

Forecast(Fiscal years ended / ending March 31)

Business Overview

The LINTEC Group comprises three business segments: Printing and Industrial Materials Products, Electronic
and Optical Products, and Paper and Converted Products. Each business segment has two operations, which
prepare and advance original strategies.
Share of Net Sales¥37.4 billion
17.8 %

Share of Operating Income¥87.6 billion
41.6 %¥4.3 billion
24.4 %¥2.8 billion
15.8 %Net Sales

Operating Income¥210.5 billion¥17.7 billion(Fiscal year ended March 31, 2016)(Fiscal year ended March 31, 2016)¥85.4 billion
40.6 %¥10.6 billion
59.8 %

Printing and Industrial Materials ProductsElectronic and Optical Products

Paper and Converted Products

Note: Operating income composition data is based on figures before the elimination of intra-segment transactions.

LINTEC ANNUAL REPORT 201615

:: MANAGEMENT STRATEGYBusiness Overview

Printing and Industrial
Materials Products
Printing & Variable Information Products Operations
These operations manufacture and sell the Group’s mainstay adhesive papers andfilms for seals and labels. In particular, the operations have an approximate 60% shareof Japan’s adhesive film market. Overseas, operations are expanding a network of
manufacturing and sales bases in China and Southeast Asia with a view to growing
market shares.

Main Products• Adhesive papers and films for seals and labels• Label printing machines

Net Sales:¥54.1 billion (Fiscal year ended March 31, 2016)

Business Strategies
In the fiscal year ended March 31, 2016, our business in Japan performed steadily. Overseas, however,
we faced challenging conditions. In addition to economic deceleration in the markets of China andSoutheast Asia, a temporary suspension of operations at PT. LINTEC INDONESIA affected us. I want torecover from this setback as soon as possible by rebuilding our product supply capabilities and exploiting the network of sales bases we have established to develop businesses aggressively.
Meanwhile, in the European market our major exhibit at a trade fair in Belgium gave our advanced
technological and solutions capabilities widespread exposure. We will collaborate with our sales basein the Netherlands, LINTEC EUROPE B.V., and with local partner companies to strengthen delivery

16

Sumio Morimoto

capabilities in this market further to achieve solid results. In addition, we plan to create new demand

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

for labels by actively proposing usage of the various types of products announced at the trade fair not

LINTEC ANNUAL REPORT 2016

only overseas but also in Japan.

This business segment comprises Printing & variable information products operations andIndustrial & material operations. In the fiscal year ended March 31, 2016, the businesssegment recorded net sales of ¥87.6 billion, accounting for 41.6% of the Group’s net sales.
Operating income was ¥2.8 billion, or 15.8% of the Group’s operating income.

Industrial & Material Operations
These operations provide a wide range of products, from window films that are applied towindow glass to save electricity or achieve glass shatter-proofing through to automobileuse adhesive products, tapes for bonding components in mobile devices and other devices,
label system-related equipment, and adhesive sheets for outdoor signs and interior finishing.

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

Net Sales:¥33.5 billion (Fiscal year ended March 31, 2016)

Business Strategies
In the fiscal year ended March 31, 2016, the goal of our window film operations was to step up the
global sales strategy. However, these operations flagged as MADICO recorded lackluster sales of its
products in the Chinese market. We view rebuilding the company with respect to quality and costs
as well as strategies for sales as one of our priority tasks. Also, we will increase our share of theSoutheast Asian market by further accelerating the establishment of sales channels for window films,
realizing full-capacity operations at a new coating facility introduced in Thailand in the fiscal year ended
March 31, 2016, and launching new products that reflect demand in local markets.
Sales of motorcycle- and automobile-use adhesive products are brisk and largely in line with plans.
We will continue focusing efforts on acquiring new customers for these products among overseas

Shuji Morikawa

manufacturers. In these operations, we intend to advance forward-looking business strategies, includ-

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

ing M&A, more boldly than ever.

LINTEC ANNUAL REPORT 201617

:: MANAGEMENT STRATEGYBusiness Overview

Electronic and
Optical Products
Advanced Materials Operations
These operations develop and provide such products as specialized adhesive tapes andrelated equipment essential in semiconductor chip manufacturing and mounting processes, multilayer ceramic capacitor-related tapes, touch screen-related products, andnew, next-generation sheet materials.

Main Products• Semiconductor-related adhesive tapes and equipment• Multilayer ceramic capacitor-related tapes• Touch screen-related products

Net Sales:¥43.7billion (Fiscal year ended March 31, 2016)

Business Strategies
Normally, the fourth quarter is a period of adjustment in the electronics-related market. In the fiscal
year ended March 31, 2016, although this adjustment phase affected us significantly, we were able toachieve performance that was generally in line with our expectations, partly thanks to on-site efforts.
Given the electronics-related industry’s inherent volatility and the diversification of market demand,
we believe the best way of sustaining growth is to continue steady efforts to manufacture and roll out“market standard” products that reflect customers’ actual needs even more closely.
Further, a trade fair and other events in the fiscal year ended March 31, 2016, provided opportunities
to showcase our development projects in next-generation areas, such as high-barrier films and light

18

Makoto Hattori

diffusion films. We will further strengthen these development initiatives so that they contribute to the

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

Group’s earnings as early as possible.

LINTEC ANNUAL REPORT 2016

This business segment comprises Advanced materials operations and Optical products
operations. In the fiscal year ended March 31, 2016, the business segment posted
net sales of ¥85.4 billion, accounting for 40.6% of the Group’s net sales. Operating income
was ¥10.6 billion, or 59.8% of the Group’s operating income.

Optical Products Operations
These operations conduct adhesive processing for optical functional films, including
polarizing films and retardation films used to make LCDs; surface improvement processing for polarizing films, such as antiglare hard coat processing, which protects films
from scratches and reduces reflectivity; and the manufacturing of protective films forpolarizing films.

Main Products• Polarizing films and retardation films (adhesive processing)• Polarizing films (surface improvement processing)• Protective films for polarizing films

Net Sales:¥41.7 billion (Fiscal year ended March 31, 2016)

Business Strategies
In the LCD market, demand for products for large televisions and smartphones fluctuates markedly.
The degree and period of inventory adjustments for these products has a significant effect on strategies
in Optical products operations. Further, we have a strong sense of crisis due to intensifying price competition.
However, we believe that there are tasks that we must accomplish now in the midst of these difficult
business conditions. In its first year, LIP-2016 set forth goals that call for rigorous reform of quality,
costs, delivery, and developmental capabilities as well as the building of a global quality management
system at production bases in Japan, South Korea, and Taiwan. The benefits of these measures are
emerging steadily and include improved adhesive formulation and rationalized production processes.
While continuing to advance such measures, we will work in partnership with a film manufacturer that

Kazuyoshi Ebe

is our supplier to begin developing new materials that will become future growth drivers.

Director, Managing Executive Officer
Assistant General Manager, Business
Administration Div., in charge of Optical
Products Operations, Business
Administration Div.

LINTEC ANNUAL REPORT 201619

:: MANAGEMENT STRATEGYBusiness Overview

Paper andConverted Products
Fine & Specialty Paper Products Operations
Centered on businesses in Japan, these operations manufacture and sell color papers
for envelopes and colored construction papers, products for which the Group has the leading
share in domestic markets; oil resistant papers for food packaging; lint-free papers thatare used in places such as clean rooms and cause hardly any dust even when torn; highgrade printing papers with special textures; and high-grade papers for paper products
used for business cards and postcards.

Main Products• Color papers for envelopes• High-grade printing papers• Colored construction papers• High-grade papers for paper products• Special function papers

Net Sales:¥17.0 billion (Fiscal year ended March 31, 2016)

Business Strategies
In the fiscal year ended March 31, 2016, mainstay color papers for envelopes performed steadily,and sales of functional papers, such as oil resistant papers and construction material papers, grew.
Also, a new water-repellent, printable paper for envelopes earned strong market endorsement.
In addition, we were able to proactively conduct market surveys with a view to businessexpansion overseas. We will concentrate efforts on growing sales of function papers for food-related
products and construction materials-related products in regions centered on Asia. We also want toincrease the pace of new product development, including collaborations with academia. As the world
becomes increasingly paperless, we will establish target profiles for Fine & specialty paper products
Toshimi Sugaya
General Manager, Fine & Specialty
Paper Products Operations, Business
Administration Div.

20

LINTEC ANNUAL REPORT 2016

operations five years and ten years in advance and take measures steadily to realize them.

This segment comprises Fine & specialty paper products operations andConverted products operations. In the fiscal year ended March 31, 2016, the businesssegment recorded net sales of ¥37.4 billion, accounting for 17.8% of the Group’s net sales.
Operating income was ¥4.3 billion, or 24.4% of the Group’s operating income.

Converted Products Operations
These operations provide release papers and films that protect the adhesive surfaces ofa variety of adhesive products. Additionally, we produce casting papers that are used as
patterning papers for placing designs on synthetic leather. We also manufacture casting
papers for carbon fiber composite materials for which demand is expected to rise inconjunction with increased usage in aircraft.

Main Products• Release papers for general-use• Release films for optical-related products• Casting papers for synthetic leather• Casting papers for carbon fiber composite materials

Net Sales:¥20.5 billion (Fiscal year ended March 31, 2016)

Business Strategies
As they were in the first year of LIP-2016, sales in China were lackluster. A series of bankruptcies among
local synthetic leather manufacturers and sluggish demand for base papers for abrasive papers used inconstruction are making for tough business conditions. In relation to casting papers for synthetic
leather, we will rebuild operations in China with a particular focus on high-value-added products. At thesame time, we will reexamine various measures, including measures to capture demand in such newmarkets as Southeast Asia, Central and South America, and the Middle and Near East. Based on ourconclusions, we intend to take action rapidly.
In addition, challenging business conditions are likely to continue due to such factors as the effect of
inventory adjustment in the smartphone market on release papers for flexible printed circuits (FPCs)

Yutaka Iwasaki

cover lay films. However, we will continue concentrating efforts on membrane production process films,

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

a new type of functional film, and other products to create new demand with the potential of forming
the future pillars of operations.

LINTEC ANNUAL REPORT 201621

:: MANAGEMENT STRATEGYSpecial Feature

Front Lines of R&D—Creation of Innovative New Products
Under the LINTEC Group’s medium-term business plan, LIP-2016, we define one of its
key initiatives as “Create innovative new products that will support the next generation,”based on which we are developing new products and reinforcing our research foundations.
LINTEC is working to improve the efficiency of development in consideration of two
keywords: “front-loading design,” which entails scrutinizing customer needs and development processes from the initial R&D stages, and “one-stop development,” in whichmaterials and the processes for their mass production are developed side-by-side. In
addition, the start of full-fledged operations at the new Advanced Technology Building
research center completed in May 2015 is anticipated to contribute greatly to increased
speed in future product development projects.
In this feature, we will take a look at the front lines of the LINTEC Group’s R&D activities,
which will include introductions of recently launched products, products under developmentthat are expected to drive future growth, and initiatives at an R&D base in the United States.

22

LINTEC ANNUAL REPORT 2016

New Adhesive Products for Seals and Labels
Adhesive products for seals and labels come in many diverse forms based on theapplications for which they are to be used. As a leading company in this field, LINTEC
has a history of offering fine-tuned responses to the demanding performance needs ofJapanese companies. At Labelexpo Europe 2015, the world’s largest label-related
exhibition, which was held in autumn 2015, we made a global announcement of eight
newly developed products, including the following four products.

Revolutionary Bubble-Free Labelstock
It is not uncommon for air to remain trapped when using standard adhesive films forseals and labels, meaning that they sometimes do not stick neatly. In addition, whensuch films are attached to plastic molded products, the minuscule amounts of gas
released from plastics can, over time, result in bubbles. LINTEC has succeeded indeveloping new adhesive films that limit the appearance of bubbles. These films employ
a revolutionary manufacturing method that entails intentionally creating cracks in theadhesive surface to form grooves running in random directions. These grooves allow for
air to escape, making the film easy for anyone to apply while preventing the occurrenceof bubbles. These films are especially suited to the name and display labels attached toconsumer electronics and electronic devices as well as to large labels under which air iseasily trapped during application.

Oil-Tolerant Labelstock / Oil- and Water-Repellent Labelstock
LINTEC’s oil-tolerant labelstock undergoes a unique adhesive treatment so that they canbe applied even to steel plates and other oily surfaces. They are thus suited for use as
control labels for industrial applications, including on steel products and automotive
parts, and as display labels for foods and cosmetics. Our oil- and water-repellent labelstock, meanwhile, utilizes a special surface coating to repel water and oil, allowing foreasy runoff even when the surface to which they are applied is only slightly slanted. It istherefore ideal for use as protective film for helmet visors or as over-laminating film foroil-tolerant labelstock.

Recycled PET LabelstockThis labelstock features adhesive films with facestock comprised of more than 80%
polyethylene terephthalate (PET) resin recycled from PET bottles, the world’s highest
level for recycled PET resin content, and recreates the same physical properties oflabelstock that uses non-recycled PET film. As a labelstock that helps conserve fossil
resources, this product received the Award for Sustainability at the Label Industry Global
Awards 2015, which was presented at a special forum during Labelexpo Europe 2015.
This award is bestowed upon superior eco-friendly products that contribute to the realization of a sustainable society. As the first Asian company to receive this prestigious award,
LINTEC was able to make a lasting impression on the eco-conscious European market.

LINTEC ANNUAL REPORT 201623

:: MANAGEMENT STRATEGYSpecial Feature

Advanced Sheet Materials Development
By fusing at a high level the four core technologies that we have accumulated to date, we
are forging ahead with the development of unprecedented advanced sheet materials. In
January 2016, we garnered attention by displaying the following product developments atthe nano tech 2016 International Nanotechnology Exhibition & Conference, an advanced
technology exhibition that was held in Tokyo.

High-Barrier Films
Flexible displays, which can be bent and rolled, require flexible films for use in place of
conventional glass. LINTEC is in the process of developing highly functional films thatmaintain the flexibility characteristic of films while also achieving levels of transparency
that are almost identical to that of glass combined with barrier properties that are potent
at keeping out water vapor. By employing a proprietary manufacturing process that
increases the density of barrier layers, we have succeeded in developing high-barrier
films with a PET film base that boast the world-leading performance for such films.
Leveraging our strength as an adhesive product manufacturer, we are able to provide
these films together with a film-use adhesive that also prevents penetration by water
vapor. Applying this technology, we are currently jointly developing a manufacturing
process technology for flexible organic light-emitting diode (OLED) displays with theIndustrial Technology Research Institute, a Taiwanese government-run research institution. At the same time, these high-barrier films are being utilized for in-house development projects aimed at creating new transparent conductive films.

Renditions of flexible OLED display

Light Diffusion Films
Reflective LCDs display information by reflecting sunlight or external lighting. Whilethese displays boast electricity consumption that is significantly lower than standard
LCDs, which utilize backlights as a light source, they also suffer from issues related tobrightness and visibility. LINTEC’s light diffusion films feature a specialized structure
consisting of two layers inside of the films, both boasting different refractive indexes,
created by shining UV rays on the films during the manufacturing process. As such,these films are able to prevent dispersion of light intake while ensuring optimal andefficient diffusion in the appropriate direction. This feature contributes to brighter information displays on reflective LCDs, and these films are therefore expected to be adopted
in wearable terminals and e-book display devices. We also anticipate that our light
diffusion films will be used as digital signage screens, which are utilized to display
projector images onto glass storefronts, large-scale facility walls, and other surfaces.

24

LINTEC ANNUAL REPORT 2016

Reflective LCD using LINTEC’s light diffusion film(right)Thermoelectric Sheets
LINTEC handles thermoelectric sheets, which utilize a phenomenon in which electric
voltage is created due to temperature differences between substances to convert heat
into electricity. These sheets are anticipated to provide new sources of renewable energy,
as they can generate electricity merely by being attached to a surface that will create a
disparity in temperature between the two sides of the film, inside of steam pipes or on
the underside of automobile hoods, for example. Existing thermoelectric conversion
devices are made by placing metallic thermoelectric conversion materials between
ceramic layers and are therefore expensive. The thermoelectric sheets we are developing,
however, are made from resin sheets, thereby combining high flexibility with low costs.

Initiatives at U.S. R&D Base
In 2013, the Nano-Science & Technology Center (NSTC) was established in the U.S. stateof Texas to serve as an R&D base for LINTEC OF AMERICA, INC. At the center, the Groupis moving forward with the development of next-generation materials, such as carbon
nanotube sheets and artificial muscle, through industry–academia collaboration with the
University of Texas at Dallas.

Carbon Nanotube Sheets
Carbon nanotubes, or cylindrical carbon materials with diameters measured in nanometers,
are gathering attention as a completely new type of material, boasting exceptional resilience toward bending and pulling, despite being incredibly light, while also demonstratingsuperior electricity and heat conduction properties. Standard carbon nanotubes come in
the form of a powder, making them difficult to handle. However, NSTC has developed atechnology that allows for carbon nanotubes to be processed into sheets without diminishing the qualities of this material. For example, carbon nanotube sheets can be used
for such applications as electrode materials in the electricity storage devices of electricvehicles and also contribute to higher capacity and smaller size for these systems.

Artificial Muscle
NSTC is moving forward with the development of artificial muscle, a type of drive systemengineered to mimic the muscle tissue of living organisms. NSTC manufactures artificial
muscle using synthetic resin and other high polymers. Despite employing a relatively
simply manufacturing process, NSTC’s artificial muscle is able to stretch and contract
for a wide range of motion while limiting manufacturing costs. Looking ahead, we anticipate that this product will be used in a diverse variety of fields, including in robotic
exoskeletons for supporting nursing care.
In November 2011, our artificial muscle technology was named the Gold Winner ofthe R&D 100 Market Disruptor Product Special Recognition Award in the 2015 R&D 100
Awards, which are sponsored by R&D Magazine of the United States and are sometimes
referred to as the “Oscars of Invention.”

Ceremony for presenting 2015 R&D 100 Awards

LINTEC ANNUAL REPORT 201625

:: THE BASE THAT SUPPORTS GROWTH

R&D Activities and Intellectual Property

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

a technical magazine. We are continuing to seek out new

In the fiscal year under review, R&D expenses incurred

applications for this coating.

by the Group amounted to ¥7.6 billion. The following is an
overview of the principal R&D activities conducted by each

Through these and other R&D activities, this segment incurred
R&D expenses of ¥2.4 billion.

operational segment.
Electronic and Optical Products
Printing and Industrial Materials Products

Semiconductor-Related Materials

Printing and Variable Information Materials

LINTEC is pushing forward with its DBG+LE system, a fusion of

LINTEC succeeded in developing revolutionary bubble-free

our dicing before grinding (DBG) system, which allows for thelabelstock that utilizes a proprietary manufacturing method

creation of thinner large-scale integration (LSI) chips, and ourto prevent air from becoming trapped beneath labels. ThisLE tape, which functions as both dicing and die bonding tape.

labelstock is certified under the product safety standards ofThis has resulted in the realization of multilayer LSI chips.

Underwriters Laboratories, Inc., and can be used for applications

LINTEC is contributing to increased density of LSI packaging

such as in the name and display labels attached to consumer

through measures such as the integration of this technology

electronics and electronic devices.

in solid state drives (SDDs), which represent an alternative to

In addition, LINTEC has created a new organic–inorganic

conventional hard disk drives (HDDs).

hybrid coating by combining its original technologies with thefundamental technologies of a public research institution. This

Optical Functional Materials

coating is highly effective in repelling water and oil, allowing for

We are continually engaged in the development of adhesives,

easy water and oil runoff even when the coated surface is only

such as those for optically clear adhesive sheets for use inslightly slanted. Much praise from customers has been gatheredpolarizing films and touch screens and anti-shatter films.

for this treatment after it was exhibited at Labelexpo Europe

In addition, LINTEC is advancing development of a high-barrier

2015, presented at a technical conference, and introduced infilm for use in flexible OLED displays to protect the organic
materials, which are weak to water and oxygen. We are aggressively pushing forward with sample work activities to obtainmaterial certification for this film from manufacturers. Thisfilm has already gained a positive reputation among several
manufacturers, due in part to demand for its use in e-bookdisplay devices and printed electronics. We will continue working
to acquire new customers for this product going forward.

Revolutionary bubble-free labelstock allowing for easy
release of trapped air

26

LINTEC ANNUAL REPORT 2016

Moreover, our light diffusion films utilize proprietary designs

In release materials, we launched newly developed products

and can be specially customized to meet customer needs,

with the goal of acquiring new customers and expanding

offering a competitive advantage. We anticipate that these films

applications for our casting papers for carbon fiber composite

will be adopted for display and signage applications. We aim tomaterials. In addition, we are striving to enhance our existing

expand sales of these products as we develop new functional

range of environmentally friendly products and have beenadhesives and coatings.

pushing ahead with the development of a solvent-free release

Through these and other R&D activities, this segment

coating formula as we sequentially introduce products that are

incurred R&D expenses of ¥3.8 billion.

matched to customer needs to the market.

Sealing of OLED Material with High-Barrier Films

incurred R&D expenses of ¥1.4 billion.

Through these and other R&D activities, this segment

Water vapor prevented from entering through bases

Water vapor
prevented fromentering
through ends

High-barrier film
Adhesive

Intellectual Property Activities
The LINTEC Group aims to increase corporate value by
developing original products that meet customer needs. We

OLED material

therefore rank intellectual property, such as patents, trademarks,

High-barrier film

and design rights, which we have acquired through thesedevelopment activities, as important management resources.
While placing the utmost emphasis on respecting the rights
of other companies, the Intellectual Property Department ofPaper and Converted Products

the Research & Development Division promotes strategic

In paper products, we launched white craft paper with superior

Companywide intellectual property activities. These activities

water-repellent capabilities that make it ideal for use ininclude seeking to uncover new invention candidates at R&D

envelopes as it protects contents from rain and other sources

sites for expanding intellectual property rights, which are theof dampness. Moreover, this paper is compatible with offset

lifeline for a technology-centered company.

printing and laser printing, both of which were difficult withAccordingly, while linking activities such as patent portfolio

conventional water-repellent papers, and can also be appropri-building for our foundation and growth business domains with

ately coated with adhesive when forming the paper into envelopes.

our business strategy, we aim to improve profitability based on

We aim to expand application of this paper for envelopes asintellectual property.

well as for wrapping paper, lunch mats, maps, book pages, andother articles. We also released a new oil resistant paper, which
we anticipate will see increased sales growth going forward.

Number of Patents
2,000

1,699
1,600

1,436

1,200
800
400
Japan
0

2012

2013 2014 2015 2016
(Fiscal years ended March 31)

Overseas

White craft paper with superior water-repellent
capabilities

LINTEC ANNUAL REPORT 201627

:: THE BASE THAT SUPPORTS GROWTH

Human Resources

The LINTEC Group employs approximately 4,200 people (on a consolidated basis) in 16 countries andregions around the world. Diverse human resources are important assets to the Group, and its strength ischaracterized by a corporate culture nurtured over an 80-year history that values “harmony among people”
and “stand out of the crowd” individuality in its employees, while maintaining a deeply rooted awarenessof innovation across the entire Company. LINTEC strives to create a pleasant working environment foreveryone and is engaged in the enhancement of its systems and the education of its employees.

Respect for Diversity and Human Rights

Work-Life Balance

The LINTEC Group avoids discriminatory treatment of employ-

LINTEC is working to help employees balance their profes-

ees based on race, creed, gender, education, nationality, reli-

sional and personal lives so that they will be able to performgion, or age, thereby respecting the diversity of individuals. In

their jobs with peace of mind and exercise their full abilities. In

the areas of recruitment and employment, the Group complies

addition to the establishment of no-overtime days, which aims

thoroughly with labor laws and regulations, including the prohi-

to deter employees from working excessively long hours, andbition of unfair discrimination, child labor, and harassment, andthe implementation of a flextime system, LINTEC is working

is pushing forward with the creation of workplace environments

toward the enhancement of programs that allow employees toin which all employees can happily and actively do their jobs.

match their working style to their lifestyle. This includes the

In addition, we have established a helpline through which

introduction of a planned vacation system to encourage

employees can consult with the General Affairs & Human

employees to take paid leave and a paid social contribution

Resources Division or a lawyer if they have any concerns ortime-off program. Further, in the fiscal year ending March 31,

have witnessed illegal behavior at the workplace. In the fiscal

2017, we will continue promoting the creation of environments

year under review, availability of this helpline was extended toin which employees can work with peace of mind through suchoverseas Group companies.

measures as extending the length of periods of leave andshortening work hours through the family care program and

Employment of People with Disabilities

includes expanding the field of eligibility for shorter work hours

The Group’s employment ratio for people with disabilities forfor the childcare program.

the fiscal year ended March 31, 2016, was 1.94%, which, while
higher than in the previous fiscal year, was still slightly below

Employee Education

the legally mandated rate of 2.0%. Going forward, we will strive

LINTEC has introduced Companywide rank-based training

to increase our employment ratio for people with disabilities

programs, which are human resource education programs

through measures such as the improvement of on-site facilities

tailored to an individual employee’s years of continuous service

as required.

and career. Moreover, with objectives such as promoting
second-language acquisition and encouraging women to take28

Rehiring Systems

on a more active role in the workplace, we hold theme-specific

To expand working-style options for its employees, the Group

group and correspondence training courses to promote thehas introduced a job return program to rehire ready-to-work

education of globally competent human resources and theemployees that had previously resigned for personal reasons

career progression of female employees. Further, we aresuch as childbirth, nursing care of a family member, or theengaged in efforts to boost Companywide employee under-transfer of a spouse to a different location. We have also intro-

standing of various themes, such as the environment, productduced a system to rehire employees that wish to continue

quality, the business continuity management system (BCMS),

working past the mandatory retirement age of 60 on fixed-termand CSR, through e-learning programs offered via the

one-year contracts up to a maximum age of 65.

Company’s intranet.

LINTEC ANNUAL REPORT 2016

Environmental Preservation

Under the slogan, “We have to broaden our scope when working to support the environment. There is only
one earth,” the LINTEC Group has established environmental management systems. We are committed toreducing environmental impact as an intermediary materials manufacturer and developing environmentallyfriendly products.
Environmental Management

removed. We provide label materials for returnable bottles that

We have acquired global integrated certification under the ISO

has been optimized for use on glass sake bottles. While main-

14001 international standard for a total of 25 sites, including

taining superior water tolerance during normal use, these label

the Company’s head office, 11 overseas Group companies,

materials can be easily removed after bottles have been collected

11 domestic factories, a research center, and domestic Groupby washing them with a weak alkaline solution (water temperaturecompany TOKYO LINTEC KAKO, INC. In light of the 2015 revisionof more than 70°C), thereby facilitating bottle reuse.

of ISO 14001, we will work to achieve compliance with the revised
standards and obtain global integrated certification for overseas
Group companies as we strengthen Companywide efforts toward
environmental preservation.
Reduction of Environmental Impact
The LINTEC Group is working toward the realization of asustainable society and the creation of products with low environmental impact. For the fiscal year ended March 31, 2016, due toan increase in our production volume, total energy use rose

Label materials for returnable bottles

0.3% from the previous fiscal year. However, the rate of energy
consumption per unit of production declined 3.0%. We surpassed

Solar Insulation Film for Glass for Improving

our target for annual CO2 emissions of 203,000 tons, by achieving

Air-Conditioning Efficiency

a reduction to 200,000 tons. Further, we are engaged in efforts

Window films can be applied to window glass in buildings andto reduce the amount of waste generated in our production activi-

automobiles for various effects. Of these films, our high-ties and the amount of water used in the papermaking processtransparency-type solar insulation film maintains the naturalin addition to the implementation of measures to reduce thelight inside the room and preserves the view through the window,

amount of volatile organic compounds (VOCs), including organic

while significantly cutting the thermal energy from solar radiation

solvents, that are released into the atmosphere.

that causes internal temperatures to increase and improving
the efficiency of air conditioners in the summer.

Environmentally Friendly Products
The LINTEC Group has embraced the rise in environmental
awareness of recent years, and continues to develop products
to meet a wide range of environmental needs, including thosethat are conscious of reuse, recycling, and energy-saving
principles. In doing so, the LINTEC Group will continue to offer
a lineup of products that are environmentally friendly.
Label Materials Facilitating Reuse of Glass Beverage Containers
In order to ensure efficient reuse of various containers, it is

Window films

necessary for the labels applied to these containers to be easily

LINTEC ANNUAL REPORT 201629

:: THE BASE THAT SUPPORTS GROWTH

Partnerships

The LINTEC Group boasts a very wide product lineup and conducts transactions with numerous customers
and suppliers. We build trusting relationships with suppliers as a partner that aspires toward mutual
development and convey peace of mind and reliability to our customers by developing products that meettheir needs, maintaining a stable supply of these products, and endeavoring to improve product quality andservice. Moreover, we are actively engaged in the development of products through collaboration withcustomers and cooperation with industry, government, and academic entities.

Thorough Quality Management

Fair Transactions

The LINTEC Group has acquired ISO 9001 certification, the

LINTEC has a basic policy for fair and transparent transactions

international standard for quality management systems, for its

based on the principle of free competition among suppliers,

major sites in Japan and overseas. In addition, we are working toand we are engaged in procurement activities that comply withfurther reinforce our quality assurance system by obtaining ISO

all relevant laws and regulations and social norms. For major

9001 certification for other departments and acquiring integrated

suppliers, we require evaluations through self-audit checkcertification for related sites. When comparing major quality

sheets for assessing suppliers based on quality, chemical sub-problems by year, if the fiscal year ended March 31, 2004, is set as

stance management, administration and services, and CSR. We

a base of 100, problems declined to 12 in the fiscal year ended

periodically review our purchasing processes while maintaining

March 31, 2016. We are installing frameworks both in Japan andand enhancing partnerships.

overseas to ensure that, should a quality problem occur, we are able
to take swift action by constructing and implementing management

Green Procurement

systems that allow us to quickly collect information, analyze the

The LINTEC Group is committed to procurement that aims

cause of the problem, and take steps to prevent reoccurrence.

to reduce environmental impact through thorough chemical
substance management for raw materials, parts, and secondary

Efforts toward Business Continuationmaterials. When procuring a new material or responding to a new

The Group is engaged in building a system capable of either

regulation, we ask for suppliers’ understanding in conducting

continuing or soon restarting business operations even if struck

ingredient examinations to monitor for the presence of regulated

by a disaster. All the Company’s bases in Japan and one of its

substances. For the fiscal year ended March 31, 2016, we imple-

subsidiaries, TOKYO LINTEC KAKO, INC., have obtained certifi-

mented examinations to check for substances regulated by REACH*

cation under ISO 22301:2012, the international standard forin the procurement of approximately 16,000 items. In addition, weBCMS, and LINTEC SPECIALITY FILMS (TAIWAN), INC., acquired

request that suppliers engage in proactive environmental pres-this certification during the fiscal year under review. LINTEC holds

ervation activities and thoroughly manage chemical substances.

BCMS study meetings and drills at each site, so that, in the eventof a natural disaster or accident that disrupts business operations,
we can ensure the safety of our employees before promptly
recommencing the supply of products in addition to minimizing
any effect on our stakeholders, including our customers.
In regard to suppliers of raw materials that are critical insecuring a stable supply of our products, we evaluate suchsuppliers’ ability to continue their businesses. At the same time,
we request that these suppliers introduce a business continuity
plan (BCP) and establish a management system to implement it
on an organization-wide basis.

30

LINTEC ANNUAL REPORT 2016

* REACH Regulation: Registration, Evaluation, Authorization and Restriction of Chemicals
This is a European Union regulation to address the production and use of chemicals.

Social Contribution Activities

The LINTEC Group is supported by society and local communities. Recognizing that it is a part of this, andthrough various social contribution activities, the Group returns some of the profits it has made through its
corporate activities to society. Going forward, we will endeavor to maintain harmony with society by actively
engaging in social contribution activities as a good corporate citizen.
Support for People with Disabilities

Activities at Each Work Site

LINTEC holds various support activities on an annual basis for

In addition to cleanup activities around each work site, LINTEC

people with disabilities living in Itabashi-ku, Tokyo, where its

is engaged in various other social contribution activities withhead office is located. In October 2015, we hosted a jazz concert

their roots in the community, including participating in andwith the aim of deepening interactions among attendees throughsupporting local festivals, conducting plant tours, collecting

music, regardless of whether they had or did not have a disability.

and making donations of money and products for municipalities

This was the fifth time that we hosted this concert and, on thisas well as local groups and facilities, and holding tree-planting

occasion it was enjoyed by approximately 700 people, comprising

activities. Moreover, we have been organizing blood drives forpeople with disabilities living in Itabashi in addition to othermany years at work sites nationwide, which have become

local area residents.

established among our employees as a social contribution

Furthermore, the professional baseball-viewing event we

activity that they can easily participate in.

held in May 2016 marked the 10th time the event has been held.
Through this event, a total of 135 people, including people with

Support for Earthquake Disaster Reconstruction

disabilities and their helpers, were invited to Tokyo Dome to

LINTEC is engaged in activities to support reconstruction

watch a professional baseball game. We also invited an addi-

efforts after the Great East Japan Earthquake of March 2011.

tional 330 people consisting of elementary school students

In the fiscal year ended March 31, 2016, we continued programs

belonging to youth baseball teams and their coaches fromconducted in the previous year, including providing support in

Itabashi. Before the game began, the children took part in fielding

the form of monetary donations collected from our employees,

practice and base running on the playing surface, an experience

the Company, and others to disaster-stricken Ofunato City, inthat will no doubt be remembered by many of the participants.

Iwate Prefecture. These funds are being used to maintain the

These sports-related social contribution activities have earned

grounds at junior high schools within the city and purchase

the Company recognition, and in December 2015 we were certi-

instruments for school brass band clubs. Moreover, since 2014

fied as a Sports Promotion Company by Tokyo Prefecture.

we have been holding an annual event showcasing products
from Fukushima Prefecture at our head office, thereby supporting producers in the disaster-affected area that are worried
about the financial damage to their livelihoods from harmful
rumors or misinformation about the safety of foods from
Fukushima Prefecture.
Seeking to support victims of the severe earthquakes that
impacted areas around Kumamoto Prefecture in April 2016,
we made donations to the disaster zone through the Japanese
Red Cross Society of ¥10,000,000 from the Company andProfessional baseball-viewing event¥1,820,000 collected from employees of Group companies inJapan and overseas.

LINTEC ANNUAL REPORT 201631

:: THE BASE THAT SUPPORTS GROWTH

Corporate Governance

Basic Philosophy

The Audit & Supervisory Committee meets once a month and conducts

The Company believes that the fundamentals of corporate governancemonitoring audits that focus on matters reported from the Audit Office,are to achieve thorough legal compliance, to increase management

which is the Company’s internal control division. In addition to performing

transparency and promote corporate ethics, and to make prompt

audits covering the appropriateness and legality of the execution ofdecisions and effectively execute operations. By enhancing and rein-

directors’ duties, each and every Audit & Supervisory Committee

forcing corporate governance, we aim to further increase our corporate

member also plays a role in supervising the execution of the directors’

value and joint profits with shareholders.

duties through the exercise of the voting rights on the Board of Directors.

Corporate Governance System• Evaluation of Board of Directors’ effectiveness1. Corporate Governance System

In March 2016, the Company conducted an evaluation of the effectiveness

The Company has selected the Company with Audit & Supervisoryof the Board of Directors. Details are as follows.

Committee system described in the Companies Act of Japan for its

Overview

organizational structure. The Company has placed directors that are

Based on the principles of Japan’s Corporate Governance Code, allalso Audit & Supervisory Committee members with voting rights on

16 directors filled out a survey on matters such as the structure andits Board of Directors in order to strengthen the Board’s supervisory

operation of the Board of Directors, which included some open-ended

function, with a view to stepping up corporate governance and toquestions. The results of these surveys were analyzed by representative

streamlining management even further. The Company has appointed

directors, and we received a final evaluation from outside directors.

16 directors, of which four are Audit & Supervisory Committee mem-

In this final evaluation, outside directors stated the status of the Board

bers and four are outside directors.

of Directors was rational in terms of structure and operation but also

Held once a month to make important decisions with regard tomentioned that they would like to receive materials related to meetings

management, Board of Directors’ meetings are also held on an adof the Board of Directors further in advance. Based on this feedback,hoc basis as necessary to strive for rapid decision making. Primarily

we will take steps to develop an environment that facilitates improved

comprising executive officers (including directors serving concurrently)

Board of Directors’ effectiveness through such measures as early

responsible for the execution of business, management meetings aresupply of meeting materials.

also held once a month and endeavor to streamline business operations
through the sharing of information among all business divisions.

General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Management decisions
Informing / Reporting

Board of Directors(Directors)

Auditing /Supervision

Representative Directors

Appointment /Dismissal

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

Cooperation

Management Meetings(Executive Officers)

CSR Management Office• Corporate Ethics Committee• Customer Satisfaction Committee• Environmental Preservation
Committee• Social Contribution Committee• Safety, Disaster Prevention, andHealth Committee

Operational Execution Divisions

Promotion• Administrative Division• Marketing Division• Production Division• Technical Division•D omestic and Overseas
Subsidiaries
Operational execution

32

LINTEC ANNUAL REPORT 2016

Cooperation

Internal
Auditing

Informing

Audit Office

Independent
AuditorAccount
Auditing /Internal
ControlAuditing• Director training policies(1) New director training•	Regulations and other systems pertaining to managementof risks of loss

After assuming their position, new directors are provided training

By promoting the issue of manuals by division and facilitating theirfrom outside institutions to endow them with the legal, accounting,thorough use, the Company makes preemptive efforts to reduce orand other knowledge necessary to management.

avoid risk. In the case of specific risks, the Company promotes(2) Regular training

reviews of and improvements to response measures as risks arise.

Once or twice a year, directors undergo training on contemporary

For emergency situations, such as the occurrence of a disaster, theissues from lawyers or other outside lecturers. These trainings

Company has established the Companywide Crisis Management

serve as opportunities to hone the sense of judgment that is cru-

Regulations, in addition to a BCMS, which is based on thesecial to members of the Board of Directors.

Regulations. These are separate from risk management initiatives(3) Special training

conducted through normal operations, and we strive to ensure that

When necessary, directors participate in seminars at the Company’sa crisis management organization can be quickly established in the

expense to acquire the specialized insight required to perform

event of an emergency.

their duties.
•	System to ensure that the execution of the duties of
2. Internal Control System Basic Policies

directors is efficiently conductedWith regard to an internal control system to ensure that the execution

In addition to setting out the duties for which directors are responsibleof directors’ duties is in compliance with laws and regulations as well

for and that correspond to the allocation of roles of each organization,

as the Articles of Incorporation, and a system to ensure the appropri-

based on the Regulations on the Division of Duties, the Company works

ateness of the execution of other business, the Company decided on

to separate management from execution and accelerate decision

the following matters at the Board of Directors’ meeting held on June

making by the introduction of an executive officer system. Moreover,24, 2015.

the Company reviews internal organizations as necessary to be able torespond to environmental changes and works to maintain efficiency in•	System to ensure that the execution of the duties of directors andemployees is in compliance with laws and regulations as well as

the execution of the duties of directors by such means as the setting
up of cross-organizational committees on an as-required basis.

the Articles of Incorporation
To ensure that the execution of the duties of directors and employees•	System to ensure the appropriateness of business in theis in compliance with laws and regulations as well as the Articles ofcorporate group comprising the Company and its subsidiaries

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

Based on the Affiliate Company Operational Regulations, the Company

established its motto of “Sincerity and Creativity,” on which its Codeworks to maintain the appropriateness of its operations as a groupof Conduct was based. To ensure the effectiveness of the complianceentity by having each of its principal business divisions control thesystem with regard to laws and regulations as well as the Articles ofoperations of Group companies. Based on the Affiliate Company

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

Operational Regulations, the Company works to maintain a system fordirect supervision—investigates and verifies, by means of audits based

receiving corporate performance, risk, and other important reportson the Internal Audit Regulations, whether all of the Company’sfrom each Group company regularly or on an as-required basis.

operations are being appropriately and reasonably implemented andProviding business management and support from the appropriate

pursuant to laws, the Articles of Incorporation, internal rules anddivision as necessary, the Company promotes management efficiency

regulations. The results of those audits are regularly reported to directors.

in each company. To ensure that Group companies are in compliancewith laws and regulations as well as the Articles of Incorporation,•	System for storing and managing information related tothe execution of directors’ duties

audits are conducted by each company’s internal audit system andby the Company’s Audit Office.

Documents are stored and managed in accordance with rules determinedfor each document type, including those documents stipulated by law.

LINTEC ANNUAL REPORT 201633

:: THE BASE THAT SUPPORTS GROWTH

Corporate Governance•	Matters relating to the employees who are tasked to assist

execution of their duties, the said costs or liabilities will be promptly

the duties of the Audit & Supervisory Committee, matters relating

handled following discussions in the department responsible, withto the independence of said employees from directors, and mattersthe exception of cases in which said costs have been recognized as

relating to ensuring the effectiveness of Audit & Supervisory

being not necessary for the execution of the said Audit & Supervisory

Committee instructions with respect to said employees

Committee member’s duties. In addition, should Audit & Supervisory

To further raise the effectiveness of Audit & Supervisory Committee

Committee members deem that independent outside experts (such as

audits and maintain a system to carry out audit duties more smoothly,lawyers, certified public accountants, etc.) are necessary as advisers

the Company has established the Audit & Supervisory Committee

to the Audit & Supervisory Committee, the Company will bear thosesecretariat, which supports and takes on Audit & Supervisory Committee

costs, with the exception of cases in which said costs have been

duties. It is assumed that the Audit & Supervisory Committee’s consent

recognized as being not necessary for the execution of the said Audit &has to be obtained for transfers of personnel to the Audit & Supervisory

Supervisory Committee’s duties.

Committee secretariat staff, personnel evaluations, and disciplinary
action. The instructions and orders given to Audit & Supervisory
Committee secretariat staff are also deemed to be given by directors•	Other system for ensuring that the Audit & Supervisory Committee
carries out audits effectively

serving as Audit & Supervisory Committee members. With regard

With a view to ensuring a system so that Company information

to said instructions and orders received from Audit & Supervisory

reaches the Audit & Supervisory Committee unhindered, the Company

Committee members, with the exception of those instructions andworks to maintain an environment in which information is received

orders that are not necessary for the duties of Audit & Supervisory

not only from directors (excluding directors serving as Audit &Committee members, it is assumed that Audit & Supervisory

Supervisory Committee members) and from employees but also from

Committee secretariat staff do not receive instructions and orders

independent auditors, corporate lawyers, tax accountants, and otherfrom directors or other employees.

specialists. The Company has a system in place to ensure regularmeetings with representative directors and venues for important•	System relating to the reporting of cases to the Audit & Supervisory
Committee and system for ensuring that the submitting of suchdiscussions, such as management and strategy meetings, for Audit &Supervisory Committee members to attend and state opinions.

reports is not seen as reason enough for the person who submitted
them to be subjected to disadvantageous treatment
With regard to cases that are likely to significantly damage the Company

34

3. Basic Policies and Systems for Preventing Relationships
with Antisocial Forces

or a Group company, such as violations of laws or regulations, all GroupThe Company stands in firm opposition to all antisocial forces anddirectors and employees are to report such cases to the Company’sorganizations that threaten to disrupt the order and safety of civil

Audit & Supervisory Committee. In addition, it is deemed that the Audit

society while practicing a strict policy of non-association with such

& Supervisory Committee will be able to directly demand business-

entities. We have made this commitment clearly apparent in the LINTEC

related reports for all Group directors and employees. Under theCompliance Guidelines and are taking steps to ensure thoroughCompany’s Internal Reporting System Operation Regulations and its

awareness with this regard among all directors and employees.

Global Internal Reporting System Regulations, the Company has

We reject any illegitimate requests from antisocial forces andestablished a helpline that can be used by all Group directors andorganizations and maintain close collaborative relationships with theemployees and endeavors to maintain a system to ensure that thepolice, centers for the removal of criminal organizations, lawyers, andsubmitting of such reports is not seen as reason enough for the person

other specialists to combat such requests. Should we be approached

who submitted the said notification or report to be subjected to disad-by antisocial forces or organizations, we will closely coordinate withvantageous treatment. In the event of an internal notification via thesuch institutions, organizations, lawyers, or other specialists to furnish

helpline, this will be reported to the Audit & Supervisory Committee.

a quick, organization-wide response.

•	Matters concerning policy relating to the handling of costs or

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

Supervisory Committee members

Regulations as well as a risk management system for minimizing the

When an Audit & Supervisory Committee member invoices the Company

possible impact and damage to corporate value if a major problem arises.

for the prepayment or redemption of expenses incurred for theIt has also implemented and oversees the Information Security

LINTEC ANNUAL REPORT 2016

Management Rules and the Trade Secret Management Rules forthe preservation and management of information. There are also
Companywide risk assessments centered on the CSR Management Office.

1. Human, Financial, and Business Relationships and Other SharedInterests between the Outside Directors and the Company
There are no particular shared interests between the Company andShinichi Sato, but Nippon Paper Industries Co., Ltd., where he serves

5. Limited Liability Contracts

as a senior managing executive officer, is a major trading partner ofIn accordance with Article 427, Paragraph 1 of the Companies Act,

the Company, which purchased ¥2,219 million worth of raw materials

the Company has entered into a contract with each of its non-executive

from and sold ¥115 million worth of products to Nippon Paper (bothdirectors—outside directors Shinichi Sato, Toru Nozawa, Satoshi Ohoka,

results from the fiscal year ended March 31, 2016). In addition,

and Kanako Osawa—that limits liability for compensation for damages

Nippon Paper is a major shareholder in the Company; its holding

under Article 423, Paragraph 1 of the Companies Act. Based on thisamounted to 21,737,792 shares (28.39% of the total number ofcontract, liability for compensation for damages is limited to ¥10 million

Company shares outstanding) on March 31, 2016.

or the minimum liability amount stipulated by law, whichever is greater.

There are no particular shared interests between the Company
and Satoshi Ohoka, who is an independent committee member asInternal Audits and Audit & Supervisory Committee Audits

stipulated in the Company’s rules of large-scale purchase to deal with

1. Internal Audits

an act of large-scale purchase.

The Audit Office regularly implements internal audits of divisions,

There are no particular shared interests between the Company andwork sites, plants, and affiliated subsidiaries in addition to verifying

Toru Nozawa, but Nippon Paper Industries Co., Ltd., where he serves

that operational execution processes and results comply with the law

as a director and an executive officer, is a major trading partner of theand internal regulations. The status of these internal audits is reported

Company, which purchased ¥2,219 million worth of raw materials fromwhen necessary to the Audit & Supervisory Committee, and opinions

and sold ¥115 million worth of products to Nippon Paper (both results

are exchanged on the results of the audits.

from the fiscal year ended March 31, 2016). In addition, Nippon Paper
is a major shareholder in the Company; its holding amounted to

2. Audit & Supervisory Committee Audits

21,737,792 shares (28.39% of the total number of Company shares

The Company’s Audit & Supervisory Committee comprises four directors

outstanding) on March 31, 2016.

serving as Audit & Supervisory Committee members, of whom three

There are no particular shared interests between the Company andare outside directors. While utilizing the internal control system, theKanako Osawa, who is an independent committee member as stipulated

Audit & Supervisory Committee cooperates with the Audit Office andin the Company’s rules of large-scale purchase to deal with an act of

the independent auditor, receives the necessary reports, and conducts

large-scale purchase.

audits of the directors’ business execution through such methods as
exchanges of opinions. Each Audit & Supervisory Committee member
attends management and other meetings, obtains the information

2. Functions Performed and Roles Served by Outside Directors
in the Company’s Corporate Governanceneeded for the audits, attends Board of Directors’ meetings as a director,

By utilizing knowledge and experience from his directorship experienceand supervises the directors in the execution of its duties by stating

at Nippon Paper Industries Co., Ltd., and his many years of business

opinions and participating in resolutions through their voting rights.

experience in this company’s sales divisions, Shinichi Sato is able to

Audit & Supervisory Committee members Toshio Yamamoto andstrengthen the Company’s Board of Directors’ supervisory function.

Toru Nozawa have considerable knowledge of finance and accounting,having gained many years of experience in their respective roles at

He is thus considered qualified to be an outside director.
By utilizing knowledge and experience from his directorship

the Company’s finance, accounting division, and corporate strategic

experience at Nippon Paper Industries Co., Ltd., and his many years

office and Nippon Paper Industries Co., Ltd.’s administrative division.

of business experience in this company’s administrative divisions,
Toru Nozawa is able to audit and supervise the Company’s Board of

Outside Directors

Directors. He is thus considered qualified to be a director serving as

The Company has selected Shinichi Sato, Toru Nozawa, Satoshi

an Audit & Supervisory Committee member.

Ohoka, and Kanako Osawa as its four outside directors. With theBy utilizing his long years of policy-based finance experience, his

exception of Shinichi Sato, the other three are also Audit &rich international experience, his specialist academic experience, and his

Supervisory Committee members.

knowledge and experience gained as an outside director in industries
different to that of the Company, Satoshi Ohoka is able to audit and

LINTEC ANNUAL REPORT 201635

:: THE BASE THAT SUPPORTS GROWTH

Corporate Governancesupervise the Company’s Board of Directors. He is thus considered

Remuneration of Corporate Officers

qualified to be a director serving as an Audit & Supervisory Committee

1. Total Remuneration by Corporate Officer Typemember. He is also designated as an independent director based on
the criteria stipulated by Tokyo Stock Exchange, Inc. (TSE).
By utilizing her specialist expertise and extensive knowledge gained
as an attorney, along with the knowledge and experience gained
through her career in corporate legal affairs both at home and abroad,
Kanako Osawa is able to audit and supervise the Company’s Board of
Directors. She is thus considered qualified to be a director serving asan Audit & Supervisory Committee member. She is also designatedas an independent director based on the criteria stipulated by TSE.
3. The Company’s Basic Way of Thinking with Regard to the
Independence of Outside Directors
The Company does not have its own set standards and policies with

Corporate officer type

Total
remuneration

Total remuneration by type(Millions of yen)

Number ofpeoplereceiving
Bonusesremuneration

Basic
remuneration

Stock
options

462

340

21

99

14

14

14

―

―

1

Audit & Supervisory
Board members

9

9

―

―

2

Outside officers

16

16

―

―

5

(Millions of yen)

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

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

Note: Effective June 24, 2015, the Company transitioned from the Company with
Audit & Supervisory Board system described in the Companies Act of Japanto the Company with Audit & Supervisory Committee system.

regard to the independence of outside directors and refers instead tothe standards stipulated by TSE. Since appointment is based on arequest from the Company, we recognize that independence frommanagement is to be ensured.
4. Outside Directors’ Supervision of Directors’ Execution of
Duties and Internal Auditing, Mutual Cooperation with Audit &Supervisory Committee Audits and Accounting Audits, and2.	Policy Regarding Decisions on Amounts of Director Remuneration(1)	Director remuneration (excluding Audit & Supervisory
Committee members)		Remuneration of directors (excluding Audit & Supervisory
Committee members) consists of the following.
		
Basic remuneration• Fixed amount determined based on rank as well as contribu-

Relationship with the Internal Control Division
In addition to attending Board of Directors’ meetings and making
necessary and effective remarks as appropriate during agenda

tions to the director shareholding association		

cally purchase and hold shares of Company stock through thedeliberations, outside directors cooperate with the Internal Audit
Division and the independent auditor as well as oversee directors
in the execution of their duties.

• Long-term incentives provided by enabling directors to periodidirector shareholding association based on contributions made		 Bonuses		• Short-term incentives paid in amounts adjusted based on
consolidated business results

		 Stock options		• Long-term incentives provided together with the director
shareholding association			 The amounts of remuneration are decided by the Board of
Directors in accordance with the Company’s internal rules on
director remuneration and based on the duties and responsibilitiesof each director (excluding Audit & Supervisory Committee members),
within totals approved at the General Meeting of Shareholders.
			 The remuneration assessment advisory meeting has been
established as an advisory body for the president and CEO on
matters regarding the assessment of and decisions on remuneration for directors (excluding Audit & Supervisory Committee
members) with the aim of improving objectivity and transparency.

36

LINTEC ANNUAL REPORT 2016

This body, which has members including external specialists,(2) The Public Relations Office, Finance & Accounting Department,

provides advice and makes suggestions to the president andGeneral Affairs & Legal Department, and Corporate Strategic

CEO when necessary.

Office will play a central role in advancing the Company’s various
IR activities. Relevant divisions pursue close coordination with(2) Director (Audit & Supervisory Committee member) remunerationthese offices and departments, exchanging information on a daily	Audit & Supervisory Committee member remuneration is discussed

basis and meeting with members of senior management as

and decided by the Audit & Supervisory Committee in accordance

appropriate to share necessary information.

with the Company’s internal rules on director remuneration andbased on each member’s duties and responsibilities, within
totals approved at the General Meeting of Shareholders.

(3) In addition to individual meetings, the Company’s IR activities
include regular briefings on financial results and medium-termbusiness plans, visits to overseas investors, participation in IR

Policy on Holdings of Capital Tie-Up Sharesconferences at which overseas investors gather, business explana-

The Company views the establishment and maintenance of stable,

tory forums, and Company briefings for individual investors. In thelong-term relationships with business partners as a matter of impor-fiscal year ended March 31, 2016, the Company participated in atance. For this reason, shares of stock are held to form capital tie-ups

total of four IR conferences held in Tokyo and London and also held

when deemed appropriate based on a comprehensive evaluation of

a Company briefing for individual investors in Kyoto. We seek tofactors such as the Company’s business relationship with the partner

expand the range of information provided to domestic and overseas

in question. We only acquire such holdings when increasing trust andshareholders and other investors by publishing shareholder

coordination with the business partner through holdings is judged as

newsletters and annual reports and posting information in the IRan effective means of mutually raising corporate value, and these

section of our corporate website. At the same time, we collectholdings are reviewed based on this perspective when necessary.

feedback from a wide range of shareholders and other investors

In exercising voting rights, the Company respects the management

through surveys that are attached to shareholder newsletters andpolicies of the investee and votes for or against proposals based on amade available in the IR website.

careful examination of whether or not the proposal will contribute toimproved corporate value and shareholder returns.

(4) Opinions and concerns of shareholders and other investors solicitedthrough IR activities are relayed to management by the relevant

Shareholder Interactions

divisions via quarterly business reports at the Board of Directors’

The Company seeks to engage in constructive interactions withmeetings or reported appropriately to management on anshareholders and other investors that contribute to sustainableas-required basis.

growth and medium-to-long-term improvements in corporate value.
The Company has established an investor relations (IR) activity(5) In interactions with shareholders and other investors, we

system and advances proactive initiatives based on the following

practice stringent management of information in accordance with

policies to facilitate this endeavor.

the internal Insider Trading Prevention Regulations to ensure that
insider information is not disclosed. In addition, the Company’s(1) The officer responsible for IR implements and oversees thedisclosure policy stipulates that we will observe a quiet period that

Company’s various IR activities, including individual meetings with

begins approximately one month prior to the announcement ofshareholders and investors. In regard to responses to requests forquarterly financial results to avoid leaks of financial results and toindividual meetings, members of senior management or directors

maintain fairness. During this period, we will not answer questions

will meet with shareholders or investors requesting meetingsor make comments on our financial results and forecasts.

based, whenever appropriate, on the desires and interests of
the requester. In the fiscal year ended March 31, 2016, we held
individual meetings with more than 180 domestic and overseas
institutional investors and analysts.

LINTEC ANNUAL REPORT 201637

:: THE BASE THAT SUPPORTS GROWTH

Corporate Officers
As of June 22, 2016

Representative Director, Chairman and CEO

Directors, Managing Executive Officers

Akihiko Ouchi (Date of Birth: Jan. 2, 1945)

Kazuyoshi Ebe (Date of Birth: Jan. 26, 1953)

Mar. 1967 Joined the Company
Apr. 1994 General Manager, Nagoya Branch OfficeJun. 2000	Director, Plant Manager, Tatsuno Plant, Production Div.
Jun. 2004 Representative Director, President
Apr. 2014	Representative Director, Chairman and CEO(current position)

Mar. 1975 Joined the Company
Jun. 2008	Director, Assistant General Manager, Research &Development Div., General Manager, Research Centerand Intellectual Property Dept.
Apr. 2016	Director, Managing Executive Officer, AssistantGeneral Manager, Business Administration Div., andin charge of Optical Products Operations, Business
Administration Div. (current position)

Representative Director, President, CEO and COO

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

Takashi Nakamura (Date of Birth: Dec. 23, 1953)
Apr. 1976 Joined the Company
Jun. 2011	Executive Officer, General Manager, Fine & Specialty
Paper Products Operations, Business Administration
Div., and in charge of Converted Products Operations
Apr. 2016	Director, Managing Executive Officer, AssistantGeneral Manager, Business Administration Div., andin charge of Fine & Specialty Paper Products
Operations, Business Administration Div.
(current position)

Director, Vice President Executive Officer, CFO

Hitoshi Asai (Date of Birth: Mar. 7, 1948)
Feb. 1985 Joined the Company
Jun. 2002	Director, Assistant General Manager, Administration
Div., General Manager, Finance & Accounting Dept.
Oct. 2015	Director, Vice President Executive Officer, General
Manager, Administration Div. (current position)

Gohei Kawamura (Date of Birth: Jan. 12, 1956)
Apr. 1979 Joined the Company
Jun. 2011	Executive Officer, Chairman and President, LINTEC(SUZHOU) TECH CORPORATION (seconded)
Apr. 2016	Director, Managing Executive Officer, AssistantGeneral Manager, Production Div., and in charge of
Quality Assurance & Environmental Protection Div.
(current position)

Director, Vice President Executive Officer

Shigeru Kawasaki (Date of Birth: Dec. 24, 1949)
Apr. 1972 Joined the Company
Jun. 2005	Director, General Manager, Printing & Variable
Information Products Operations, Business
Administration Div.
Apr. 2013	Director, Vice President Executive Officer,
General Manager, Business Administration Div.
(current position)

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

Director, Senior Managing Executive Officer

Director, Executive Officer

Koji Koyama (Date of Birth: Nov. 5, 1951)

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

Mar. 1976 Joined the Company
Jun. 2008 Director, General Manager, Production Div.
Apr. 2016	Director, Senior Managing Executive Officer, General
Manager, Production Div. (current position)

38

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

LINTEC ANNUAL REPORT 2016

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

Director, Executive Officer

Outside Directors / Audit & Supervisory Committee Members

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

Toru Nozawa (Date of Birth: Mar. 10, 1959)

Apr. 1980 Joined the Company
Apr. 2014	Executive Officer, General Manager, Advanced
Materials Operations, Business Administration Div.
Jun. 2015	Director, Executive Officer, General Manager,
Advanced Materials Operations, Business
Administration Div. (current position)

Apr. 1981 Joined Jujo Paper Co., Ltd.
Jun. 2014 Outside Audit & Supervisory Board Member of		the Company
Jun. 2014	Director, Executive Officer, General Manager,
Corporate Planning Div., and in charge of Subsidiaries
and Affiliated Companies, Nippon Paper Industries
Co., Ltd. (current position)
Jun. 2015	Outside Director / Audit & Supervisory Committee
Member of the Company (current position)

Outside Director

Shinichi Sato (Date of Birth: Nov. 13, 1953)

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

Apr. 1978 Joined Jujo Paper Co., Ltd.
Jun. 2008	Director, Deputy General Manager, Fine & Specialty
Paper Products Sales Div., Nippon Paper Industries
Co., Ltd.
Jun. 2011 Outside Director of the Company (current position)
Jun. 2015	Senior Managing Executive Officer, General Manager,
Printing Paper Sales Division, in charge ofInternational Sales Management & Planning Dept.,
Nippon Paper Industries Co., Ltd. (current position)

Apr. 1975 Joined Japan Development Bank
Apr. 2003	Lecturer, Chuo University, Graduate School ofCommerce (current position)
Jun. 2006 Outside Director, Ryobi Limited (current position)
Jun. 2007	Member of LINTEC Independent Committee(current position)
Jun. 2012 Outside Director of the Company
Jun. 2015	Outside Director / Audit & Supervisory Committee
Member of the Company (current position)

Director / Audit & Supervisory Committee Member

Toshio Yamamoto (Date of Birth: Dec. 27, 1948)

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

Apr. 1972 Joined the Company
Oct. 2006 Chief Associate Adviser, Corporate Strategic OfficeJun. 2010 Audit & Supervisory Board Member
Jun. 2015	Director / Audit & Supervisory Committee Member(current position)

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

Managing Executive Officers

Executive Officers

Toshikazu Yamada

Takehiko Wakasa

Shigeru Uematsu

Tatsuya Tsukida

Plant Manager, Tatsuno Plant,
Production Div. and General Manager,
Administration Dept.

Plant Manager, Chiba Plant,
Production Div.

General Manager, Public Relations Office

General Manager, Research &Development Div. and Research Center

Koichi Kimura

Junichi Nishikawa

Yutaka Iwasaki

Yohei Hoshikawa

General Manager,
Quality Assurance & Environmental
Protection Div.

Plant Manager, Kumagaya Plant,
Production Div.

General Manager, Converted Products
Operations, Business Administration Div.

General Manager,
Corporate Strategic Office

Toru Onishi

Masahiro Oshima

Plant Manager, Mishima Plant,
Production Div. and General Manager,
Administration Dept.

Plant Manager, Agatsuma Plant,
Production Div.

Norio Murata

Sumio Morimoto

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

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

LINTEC ANNUAL REPORT 2016

39

FINANCIAL SECTION– 41 Management’s Discussion and Analysis– 43 Operating Risks– 44 Financial Summary– 46 Consolidated Balance Sheet– 48 Consolidated Statement of Income– 48 Consolidated Statement of Comprehensive Income– 49 Consolidated Statement of Changes in Net Assets– 50 Consolidated Statement of Cash Flows– 51 Notes to Consolidated Financial Statements– 69 Management’s Report on Internal Control
over Financial Reporting– 70 Report of Independent Auditors

40

LINTEC ANNUAL REPORT 2016

:: FINANCIAL SECTIONManagement’s Discussion and Analysis

Revenues and Expenses

In Industrial & material operations, sales of window films were

In the fiscal year under review, consolidated net sales increasedsluggish, due partly to the effects of an economic slowdown in China,

1.6% year-on-year, to ¥210.5 billion. This increase was attributable towhile sales of motorcycle- and automobile-use adhesive products

a variety of factors including substantial growth in Advanced materials

were steady, particularly in India.

operations backed by the effects of demand for smartphones andother items.

As a result of the above, net sales in Printing and Industrial
Materials Products were up 1.0% year-on-year, to ¥87.6 billion, andGross profit increased 7.0% year-on-year, to ¥53.6 billion, following

operating income decreased 3.2%, to ¥2.8 billion.

such factors as higher sales volumes and lower prices for petrochemical raw materials and fuel, which counteracted the rise in theElectronic & Optical Products

price of pulp resulted from yen depreciation. Operating income, how-

In Advanced materials operations, sales of semiconductor-related

ever, only grew 4.8%, to ¥17.7 billion, due to higher general adminis-

adhesive tapes posted significant growth backed by the effects oftrative expenses associated with the completion of new researchdemand for smartphones and other products, while sales ofcenter buildings. Profit before income taxes was ¥16.8 billion, down

semiconductor-related equipment decreased. Multilayer ceramic

4.3% year-on-year, as a result of the recording of foreign exchange

capacitor-related tapes grew significantly thanks to the effects oflosses and increased extraordinary loss. Income taxes were ¥6.0 bil-demand for smartphones and automotive products.

lion following the application of tax effect accounting, and profit

In Optical products operations, sales of LCD-related adhesive

attributable to owners of parent for the fiscal year under review

products were steady due to the effects of demand for medium- andamounted to ¥10.9 billion, a year-on-year decrease of 6.5%.

small-sized applications for smartphones.

Net income per share decreased from ¥161.63 in the previous fiscal
year to ¥151.07, and ROE declined from 7.2% to 6.4%.

As a result of the above, net sales in Electronic and Optical
Products were up 2.7% year-on-year, to ¥85.4 billion, and operating
income increased 4.9%, to ¥10.6 billion.

Performance by Operational Segment
Printing & Industrial Materials Products

Paper & Converted Products

In Printing & variable information products operations, sales of

In Fine & specialty paper products operations, sales of color papers

adhesive products for seals and labels in overseas markets decreased

for envelopes, mainstay products, were steady and sales of oil resis-

mainly due to the effects of an economic downturn in China and thetant papers grew backed by the effects of demand for products for

ASEAN region, but sales remained solid in Japan, particularly withconvenience stores and fast food restaurants.

regard to sales of beverage-, medical-, and cosmetic-use products.

Net Sales

Operating Income¥ Billion¥ Billion

207.3

2015

Printing andIndustrial
Materials
Products
+0.9

210.5

Electronic
andOpticalProducts+2.2

Paper andConverted
Products+0.2

2016(Fiscal years ended March 31)

17.7

16.9
Printing andIndustrial
Materials
Products
–0.1

2015

Electronic
andOpticalProducts+0.5

Paper andConverted
Products+0.3

Adjustment
+0.1

2016
(Fiscal years ended March 31)

LINTEC ANNUAL REPORT 201641

:: FINANCIAL SECTIONManagement’s Discussion and Analysis

In Converted products operations, sales of casting papers for[Net Assets]

carbon fiber composite materials were steady, centered on those for

Net assets as of March 31, 2016, were ¥172.1 billion, an increase of ¥0.4

use for aircraft, while sales of release papers and films declined due

billion compared with the end of the previous fiscal year. The main

to sluggish demand mainly for adhesive products, FPC cover lay films,

reasons for this increase were as follows:

and optical products.

· Retained earnings

As a result of the above, net sales in Paper and Converted Products
were up 0.4% year-on-year, to ¥37.4 billion, and operating income+¥ 7.1 billion· Foreign currency translation adjustments–¥3.4 billion· Remeasurements of defined benefit plans–¥3.0 billion

increased 7.7%, to ¥4.3 billion.
Cash Flows
Financial Condition

Cash and cash equivalents as of March 31, 2016, amounted to ¥60.3[Assets]billion, an increase of ¥4.3 billion, or 7.6%, compared with the end of

Total assets as of March 31, 2016, were ¥240.7 billion, an increase of

the previous fiscal year.

¥3.3 billion compared with the end of the previous fiscal year. The
main reasons for this increase were as follows:[Cash Flows from Operating Activities]· Cash and deposits+¥3.7 billion

Net cash provided by operating activities increased ¥4.4 billion year-· Trade notes and accounts receivable–¥ 1.8 billion

on-year, to ¥19.9 billion. The principal movements were as follows:· Inventories–¥ 1.1 billion· Increase in net defined benefit liability+¥5.5 billion· Property, plant and equipment+¥3.4 billion· Income taxes paid–¥ 1.6 billion· Net defined benefit asset–¥ 1.8 billion· Deferred tax assets+¥0.6 billion[Cash Flows from Investing Activities]
Net cash used in investing activities increased ¥4.8 billion year-on-year,[Liabilities]

to ¥9.9 billion. The principal movements were as follows:

Total liabilities as of March 31, 2016, were ¥68.6 billion, an increase of· Proceeds from withdrawal of time deposits–¥1.1 billion¥2.8 billion compared with the end of the previous fiscal year. The main

· Purchase of property, plant and equipment–¥3.5 billion

reasons for this increase were as follows:· Accrued income taxes–¥1 .1 billion[Cash Flows from Financing Activities]· Net defined benefit liability+¥3.6 billion

Net cash used in financing activities increased ¥0.9 billion year-on-year,to ¥4.0 billion. The principal movement was as follows:· Cash dividends paid

Net Assets

Cash Flows¥ Billion¥ Billion
Share
subscription
rights
+0.0

171.7

Total
shareholders’equity+7.1
Total accumulated
other comprehensive
income
–6.6
2015

42

LINTEC ANNUAL REPORT 2016

172.1
Noncontrollinginterests
–0.1

56.1

–¥0.7 billion

Effect ofexchange ratechange on cash
and cashequivalents–1.7

Net cashused ininvesting
Net cashactivities
provided by–9.9
operatingactivities
Net cash+19.9
used in financing
activities
–4.0

2016
(Fiscal years ended March 31)

2015

60.3

Increase in
cash andcash equivalentsfrom newly
consolidated
subsidiary
+0.0

2016
(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 thosethat are anticipated, but it does not include all risks.

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

1. Changes in Economic Conditions

or in the collection of accounts receivable due to differences in

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

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

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

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

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

technological capabilities that cater to market demand and bringing

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

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

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

2. Changes in Selling Prices
Due to intense competition in both the domestic and overseas

with other companies and academic institutions.
However, there is no guarantee that such investment of management

markets in which the Group operates, the Group may be unable toresources 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 businessresults could be affected.

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

sales overseas as well as finance transactions between both domestic

In conducting business in Japan and overseas, the Group may be 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, dependingon 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) Infrastructure failures, such as those related to electric power,
water, or communications
LINTEC ANNUAL REPORT 201643

:: FINANCIAL SECTION

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

2016

2015

2014

2013

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¥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%¥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%

Per share data (yen):
Net income
Net assets
Cash dividends¥   151.07
2,370.49
54.00¥   161.63
2,363.81
48.00¥   114.22
2,100.87
42.00¥  102.83
1,909.57
34.00¥ 8,800(9,810)19,928(9,898)(4,044)¥ 8,713(6,299)15,485(5,104)(3,135)¥10,055(5,508)16,309(6,952)(8,020)¥ 10,141(13,823)
19,619(13,966)(2,877)¥163,647
56,389107,258
60,32364,859——240,720
172,101
71.1%¥163,017
57,058105,958
56,05061,503——
237,444
171,67471.8%¥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%

76,564,240
4,246

76,564,240
4,413

76,564,240
4,223

76,564,240
4,270¥88,100
85,89554,576¥86,826
83,28154,564¥86,310
79,14352,781¥82,785
72,37252,061

2,785
10,5624,303

2,878
10,071
3,996

2,290
6,846
4,645

2,380
3,196
4,980

Depreciation and amortization
Purchase of property, plant and equipment
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
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
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)
1.	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.
2.	Effective from the year ended March 31, 2016, the “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, issued by ASBJ
on September 13, 2013) has been applied, and the title “Net income” has been changed to “Profit attributable to owners of parent.”

44

LINTEC ANNUAL REPORT 2016

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

2012

2011

2010

2009

2008

2007

¥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%

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

¥192,723
14,798
7.7%
14,298
10,2389.5%
7.7%¥  115.26
1,766.60
40.00¥  180.21
1,715.78
40.00¥ 96.36
1,596.37
24.00¥ 44.86
1,497.58
20.00¥ 123.15
1,598.30
24.00¥ 135.44
1,489.87
18.00¥ 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)¥ 9,011(14,700)
17,739(15,071)(769)¥ 7,701(11,646)
13,734(12,200)(68)¥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
113,93065.5%¥120,028
67,631
52,397
17,31573,711201
0.2%
204,852
121,635
59.4%¥117,531
67,95049,581
15,55068,377280
0.3%
198,526
113,397
57.1%

76,564,240
4,286

76,564,240
4,198

76,564,240
4,037

76,564,240
3,987

76,564,240
3,802

76,564,240
3,708¥90,143
73,92553,225¥91,936
81,19355,317

—
—
—

—
—
—

—
—
—

—
—
—

5,213
3,942
4,846

7,990
6,732
6,129

—
—
—

—
—
—

—
—
—

—
—
—

LINTEC ANNUAL REPORT 201645

:: FINANCIAL SECTION

Consolidated Balance Sheet
LINTEC Corporation and its consolidated subsidiaries
March 31, 2016 and 2015

ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2016

2015

2016

Current assets:
Cash and deposits (Notes 12, 14)¥   65,733¥   62,059$    583,363

Trade notes and accounts receivable (Note 14)

62,33164,094553,176

Inventories (Note 3)

31,06632,142

275,702

Deferred tax assets (Note 19)

1,121

1,879

9,949

Other (Notes 14, 16)

3,538

2,944

31,404

Allowance for doubtful accounts

(143)

(103)

(1,273)

163,647

163,017

1,452,322

Buildings and structures

69,97064,993620,967

Machinery, equipment and vehicles

116,352

113,258

1,032,589

Land

10,184

10,26390,387

Construction in progress

2,864

3,635

25,425

		Total current assets

Non-current assets:
Property, plant and equipment (Notes 6, 10, 13):

Other

12,07011,688107,117

211,442

203,839

1,876,488(146,583)(142,335)(1,300,881)

64,85961,503575,607

2,357

2,538

20,921

3,126

3,313

27,742

—

1,823

—

Deferred tax assets (Note 19)

4,978

3,578

44,179

Other

1,854

1,887

16,456

Allowance for doubtful accounts

(103)

(217)

(914)

Accumulated depreciation		Property, plant and equipment, net

Intangible assets (Note 13):
Investments and other assets:
Investment securities (Notes 14, 15)
Net defined benefit asset (Notes 7, 8, 17)		Total investments and other assets

9,855

10,38487,464

		Total non-current assets

77,07274,427683,993¥ 240,720¥ 237,444$ 2,136,316

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

46

LINTEC ANNUAL REPORT 2016

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars(Note 1)

2016

2015

2016

Current liabilities:
Trade notes and accounts payable (Note 14)¥ 39,683¥ 40,674$   352,177

Short-term borrowings (Notes 14, 26)

1,695

1,695

15,042

Accrued income taxes (Notes 14, 19)

2,272

3,413

20,172

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

93

111

833

12,644

11,164112,21256,38957,058500,438

Non-current liabilities:
Provision for environmental measures
Net defined benefit liability (Notes 7, 8, 17)
Other (Note 26)
		Total non-current liabilities

		Total liabilities

137

140

1,223

11,476

7,853

101,851

614

717

5,452

12,228

8,711

108,527

68,61865,770608,965

23,201

23,201205,904

Commitments and contingent liabilities (Note 2)
Net assets:
Shareholders’ equity (Note 25):
Common stock:		

Authorized: 300,000,000 shares in 2016 and 2015

		Issued: 76,564,240 shares in 2016 and 2015

Capital surplus

26,82926,830238,101

Retained earnings

123,713

116,638

1,097,921

Less: treasury stock, at cost:		

4,411,475 shares in 2016 and 4,428,615 shares in 2015

		Total shareholders’ equity(7,712)(7,741)(68,442)

166,032

158,928

1,473,484

Accumulated other comprehensive income
Net unrealized holding gain on securities

701

832

6,226

Foreign currency translation adjustments

7,812

11,256

69,337

Remeasurements of defined benefit plans (Notes 7, 8, 17)(3,509)(503)(31,143)

5,005

11,58644,420

169

166

1,502

		

Total accumulated other comprehensive income

Share subscription rights (Note 18)
Non-controlling interests

895

992

7,943

Total net assets

172,101

171,674

1,527,350

Total liabilities and net assets¥240,720¥237,444$2,136,316

		

LINTEC ANNUAL REPORT 201647

:: FINANCIAL SECTION

Consolidated Statement of Income
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2016 and 2015

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses (Notes 4, 5)
Operating income
Non-operating income:Interest income
Dividend income
Rent income
Gain on sales of noncurrent assets
Foreign exchange gains
Other income
		 Total non-operating income
Non-operating expenses:
Interest expenses
Loss on retirement of noncurrent assets
Compensation expenses
Foreign exchange losses
Other expenses
		 Total non-operating expenses
Ordinary income
Extraordinary gain:
Gain on sales of noncurrent assets (Note 6)
Gain on liquidation of subsidiaries
		 Total extraordinary gain
Extraordinary loss:
Special retirement expenses (Note 7)
Loss on abolishment of retirement benefit plan (Note 8)
Loss on temporary suspension of production (Note 9)
Impairment loss (Note 10)
		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)

2016

2015

2016

¥210,501
156,877
53,62435,932
17,692¥207,255
157,12250,13333,251
16,881$1,868,139
1,392,239
475,899
318,888
157,011

308
59
58
7
—
318
752

335
55
55
45
1,487
369
2,349

2,733
524
523
63
—
2,830
6,676

18
357
129
124
189
820
17,623

21
388
753
—
166
1,329
17,901

167
3,170
1,153
1,105
1,684
7,281
156,405

11
—
11

259
69
329

103
—
103

438
265
131
—
835
16,799

—
—
—
674
674
17,555

3,893
2,354
1,170
—
7,418
149,090

5,339
689
6,029
10,769(129)¥ 10,899

5,851
48
5,899
11,656(2)¥ 11,659

47,3896,122
53,511
95,578(1,147)$   96,726

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, 2016 and 2015

ProfitOther comprehensive income (Note 11)
Net unrealized holding gain on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans (Notes 7, 8, 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.

48

LINTEC ANNUAL REPORT 2016

2016

2015

2016

¥10,769¥11,656$ 95,578(130)(3,443)(2,975)(6,549)¥ 4,220

476
5,885
595
6,958
¥18,614(1,161)(30,556)(26,406)(58,124)$ 37,454

4,318
(97)

18,55262

38,322(868)

Consolidated Statement of Changes in Net Assets
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2016 and 2015

Thousands

Millions of yen
Shareholders’ equity

Balance as at April 1, 2014

Accumulated other comprehensive income

Number ofshares ofcommonstock

Commonstock

CapitalsurplusRetainedearnings

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

76,564¥23,201¥26,830¥104,771¥(7,754)¥147,048

23,201

26,830107,497(7,754)

149,774

Total
Foreign Remeasure­ accumulated
ments of other com­currency
definedprehensive
translation
incomeadjustments benefit plans

Sharesubscription
rights

Noncontrollinginterests

Total net
assets¥355¥5,236¥(1,110)¥4,482¥148¥930¥152,610

355

5,236

(1,110)

4,482

148

930

155,336

Cumulative effects of changes
in accounting policies

2,725

Restated balance

2,725

2,725

Changes during the year:
Cash dividends(3,101)(3,101)(3,101)

11,65911,659Profit attributable to ownersof parent

11,659Purchase of treasury stock
Disposal of treasury stock(0)

Change of scope of consolidation

(2)

(2)

(2)

15

15

15

583

583

583

Net changes in items other
476

6,020

606

7,104

18

62

7,184

Total changes during the year

than shareholders’ equity
—

—

(0)

9,140

12

9,153

476

6,020

606

7,104

18

62

16,337

Balance as at March 31, 2015

76,564¥23,201¥26,830¥116,638¥(7,741)¥158,928¥832¥11,256¥(503)¥11,586

¥166

¥992

¥171,674

23,201

26,830116,638(7,741)

158,928

832

11,256(503)

11,586

166

992

171,674

Cumulative effects of changes
in accounting policies—

Restated balance—

Changes during the year:
Cash dividends(3,823)(3,823)(3,823)

10,89910,899Profit attributable to ownersof parent

10,899Purchase of treasury stock
Disposal of treasury stock

(0)

(2)

(2)

(2)

31

30

30

—

—

Change of scope of consolidation
Net changes in items other(130)(3,443)(3,006)(6,580)2(97)

Total changes during the year

than shareholders’ equity
—

—

(0)

7,075

29

7,103

(130)

(3,443)(3,006)(6,580)

2

(97)

427

Balance as at March 31, 2016

76,564¥23,201¥26,829¥123,713¥(7,712)¥166,032¥701¥7,812¥(3,509)¥5,005¥169¥895¥172,101

Thousands

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

Balance as at April 1, 2015

(6,676)

Accumulated other comprehensive income

Commonstock

76,564$205,904$238,108 $1,035,126$(68,700) $1,410,439

205,904

238,108

1,035,126(68,700) 1,410,439(33,932)(33,932)(33,932)

96,72696,726

CapitalsurplusRetainedearnings

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

Total
Foreign Remeasure­ accumulated
ments of other com­currency
definedprehensive
translation
incomeadjustments benefit plans

Number ofshares ofcommonstock

Share
subscription
rights

Noncontrollinginterests

Total net
assets$7,387$99,900$(4,464)$102,824$1,479$8,811 $1,523,555

7,387

99,900(4,464)

102,824

1,479

8,811

Cumulative effects of changes
in accounting policies—

Restated balance—
1,523,555

Changes during the year:
Cash dividends
Profit attributable to ownersof parent

96,726

Purchase of treasury stock
Disposal of treasury stock

(7)

(23)

(23)

(23)

280

273

273

—

—

Change of scope of consolidation
Net changes in items otherthan shareholders’ equity
Total changes during the year——

Balance as at March 31, 2016

76,564$205,904(7)

62,794$238,101 $1,097,921(1,161)(30,563)(26,678)(58,404)

22

(868)

(59,250)

63,044(1,161)(30,563)(26,678)(58,404)

22

(868)

3,794

$(68,442) $1,473,484$6,226$69,337$(31,143)$44,420$1,502257$7,943 $1,527,350

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

LINTEC ANNUAL REPORT 201649

:: FINANCIAL SECTION

Consolidated Statement of Cash Flows
LINTEC Corporation and its consolidated subsidiaries
Years ended March 31, 2016 and 2015

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
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
Impairment loss
Loss (gain) on liquidation of subsidiaries
Special retirement expenses
Loss on abolishment of retirement benefit plan
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
Purchase of shares of subsidiaries
Proceeds from liquidation of subsidiaries
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings
Cash dividends paid
Purchase of treasury stock
Repayments of lease obligations
Other, net
Net cash 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
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of year (Note 12)
The accompanying notes are an integral part of the consolidated financial statements.

50

LINTEC ANNUAL REPORT 2016

Millions of yen

Thousands of
U.S. dollars(Note 1)

2016

2015

2016

¥16,799
8,800
71
788
(72)
(367)
18
(9)
163
966
582
(1,485)
(0)
(2)
—
—
438
265
(792)
26,166382(18)(6,534)(66)
19,928¥ 17,555
8,713
76(4,671)
(57)
(391)
21
(300)
325
1,449
(30)
(2,090)
(0)
7
674
(69)
—
—
(1,125)20,086397(21)(4,976)—
15,485$149,090
78,102
636
7,000
(646)
(3,258)
167
(85)
1,455
8,577
5,170
(13,185)
(0)
(21)
—
—
3,893
2,354
(7,029)232,2213,390(167)(57,990)(593)
176,860(9,653)
9,957(9,810)
26
(455)
(15)
0
—
—
(5)
2
56
(9,898)(10,353)
11,084(6,299)
472
(195)
(12)
0
(0)
105
(2)
34
61
(5,104)(85,668)
88,370(87,069)231(4,044)
(139)
0
—
—
(50)
19
501
(87,849)—(3,824)(2)(217)
0(4,044)(1,712)
4,273
56,0500¥60,323

185(3,103)(2)(214)
0(3,135)2,363
9,608
44,992
1,449¥ 56,050—(33,942)(23)(1,926)
0(35,891)(15,196)
37,922
497,4320$535,354

Notes to Consolidated Financial Statements
LINTEC Corporation and its consolidated subsidiaries
March 31, 2016

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 ¥112.68=U.S.$1, the prevailingexchange rate as of March 31, 2016. 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 a result,
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, 2016 presentation.
(b) Consolidation
The accompanying consolidated financial statements include the accountsof the Company and its 33 significant subsidiaries as of March 31, 2016,
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 estimated useful economic
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 toreflect 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 andexpense 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.

(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 the originalcost. Securities without market value are stated at cost determined by themoving 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 in the Company is principally computed by the decliningbalance method over the estimated useful lives of the respective assets
except for the buildings acquired on or after April 1, 1998, for which thestraight-line method is used.
Depreciation in its consolidated foreign subsidiaries is computed by thestraight-line method over the useful lives of the respective assets.
The significant useful lives are summarized as follows:		 Buildings and structures
2 — 50 years
		 Machinery, equipment and vehicles
3 — 17 years(h) Intangible assets (Excluding leased assets)
Capitalized costs of software for internal use are amortized using thestraight-line method over estimated 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 collectability 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.
LINTEC ANNUAL REPORT 201651

:: 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 (otherthan the capital reserve) and retained earnings (other than the legal
reserve) be transferred to the capital reserve and the legal reserve,
respectively, until the sum of the capital reserve and the legal reserve
equals 25% of the common stock account. Such distributions can be madeat any time by resolution of the shareholders or by the Boardof Directors if certain conditions are met, but neither the capital reserve
nor the legal reserve is available for distributions.
(s) Changes in accounting principles
The Company has applied the “Accounting Standard for Business
Combinations” (Accounting Standards Board of Japan (ASBJ) Statement
No. 21, September 13, 2013), the “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013) andthe “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,
September 13, 2013) from this consolidated fiscal year. Under the adopted
accounting standards, differences arising from the change in the Company’sownership interest in subsidiaries are recorded as capital surplus as longas the Company retains control over its subsidiaries, and acquisition-related
costs are recorded as expenses in the fiscal year in which such costs are
incurred. For business combinations which occur on or after the beginning of this consolidated fiscal year, adjustments of the provisional
allocation of acquisition costs for a business combination shall be reflectedin the consolidated financial statements for the fiscal year in which thebusiness combination occurred. Furthermore, the title “Net income” hasbeen changed to “Profit attributable to owners of parent,” and the title“Minority interests” has been changed to “Non-controlling interests.”
To reflect these changes in presentation, the consolidated financial statements for the previous consolidated fiscal year have been reclassified.
In accordance with the transitional treatment set forth in Article 58-2
(4) of the “Accounting Standard for Business Combinations,” Article 44-5
(4) of the “Accounting Standard for Consolidated Financial Statements,”
and Article 57-4 (4) of the “Accounting Standard for Business
Divestitures,” the aforementioned accounting standards have been applied
prospectively from the beginning of this consolidated fiscal year.
In addition, there was no applicable event for the year ended March 31,
2016, and no impact on the consolidated financial statements andamounts per share as well.
The Company has applied the “Revised Practical Solution on Accounting for
Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (ASBJ Practical Issues Task Force(PITF) No. 18, March 26, 2015) from this consolidated fiscal year. In accordance with the transitional treatment set forth in the PITF, the Company
has selected amortization treatment as in the past in which amortization
is based on the remaining amortization period for goodwill in the consolidated financial statements. In addition, this adoption does not affect theconsolidated financial statements and amounts per share.

2. Commitments and Contingent Liabilities
The Company and its consolidated subsidiaries had unused lines of credit for short-term financing aggregating ¥22,208 million (U.S. $197,094 thousand)and ¥22,286 million at March 31, 2016 and 2015, respectively.
3. Inventories
Finished goods and merchandise, work in process, and raw materials and supplies as of March 31, 2016 and 2015 were as follows:
Millions of yen

Thousands of
U.S. dollars

Finished goods and merchandise

2016¥10,956

2015¥10,7142016$ 97,239

Work in process

11,513

11,678102,175

Raw materials and supplies

8,596

9,749

76,288¥31,066¥32,142$275,702

Millions of yen

Thousands of
U.S. dollars

2015¥ 5,250

2016$ 46,806

Total

4. Selling, General and Administrative Expenses
Major items included in selling, general and administrative expenses for the years ended March 31, 2016 and 2015 were as follows:

Transportation and warehousing expenses
Provision for allowance for doubtful accounts
Salaries and allowances

48

15

431

8,011

7,430

71,0982,521

Retirement benefit expenses

284

396

Provision for directors’ bonuses

93

111

833

1,068

1,059

9,482

Depreciation
Research and development expenses

7,644

6,771

67,838Other

13,507

12,215

119,876¥35,932¥33,251$318,888

Total

52

2016
¥ 5,274

LINTEC ANNUAL REPORT 2016

5. 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, 2016 and2015 were ¥7,644 million (U.S.$67,838 thousand) and ¥6,771 million, respectively.
6. Gain on Sales of Noncurrent Assets
Gain on sales of noncurrent assets was principally related to sales of buildings and structures for the year ended March 31, 2016 and sales of land forthe year ended March 31, 2015.
7. Special Retirement Expenses
The Company has recognized special retirement expenses for downsizing of consolidated subsidiaries in the U.S. for the year ended March 31, 2016.
8. Loss on Abolishment of Retirement Benefit Plan
The Company has recognized settlement loss for partial settlement of a retirement benefit plan of consolidated subsidiaries in the U.S. for the year
ended March 31, 2016.
9. Loss on Temporary Suspension of Production
The Company has recognized extraordinary loss for temporary suspension of production at a manufacturing plant operated by a subsidiary in Indonesia
due to a labor strike for the year ended March 31, 2016.
10. Impairment Loss on Property, Plant and Equipment
The Company has recognized impairment loss on the following classes of assets for the year ended March 31, 2015:
Major use

Company housing for employees

Pressure-sensitive adhesive related
products manufacturing equipment
Total

Location

Kumagaya city, Saitama

Massachusetts State, U.S.A.

Category

Millions of yen

Buildings and structures

¥ 46

Land

197

Other

0

Subtotal

243

Machinery, equipment and vehicles

417

Other

13

Subtotal

430¥674(1) Circumstances leading to the recognition of impairment loss•T he impairment loss for the company housing has been recognized because the asset has been idled and the market price in real estate has been
declined. That asset is planned to be sold since it is not planned to be used in the future.
•T he impairment loss for the pressure-sensitive adhesive related products manufacturing equipment has been recognized because the asset has
decreased in profitability.
(2) Method of calculating recoverable amounts
The recoverable amounts used for the measurement of the impairment losses above are the net realizable value.
•T he recoverable amount of land for the company housing is based on the appraisal value after deduction of the estimated cost of the disposal.
The recoverable amounts of other assets are the nominal value.
•T he recoverable amounts of the assets above for the pressure-sensitive adhesive related products manufacturing equipment are based on athird-party appraisal value.

LINTEC ANNUAL REPORT 201653

:: FINANCIAL SECTION

11. Comprehensive Income
Reclassification adjustment and tax effect of other comprehensive income for the years ended March 31, 2016 and 2015 were as follows:
Millions of yen

Thousands of
U.S. dollars

2016

2015

2016

¥  (202)¥   642$ (1,799)

(0)

(0)

(0)

(202)

642

(1,799)Net 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

71

(165)

637

(130)

476

(1,161)(3,443)

5,885(30,556)―——(3,443)

5,885(30,556)

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

Prior to deducting tax effect		Tax effect

―

—

—

(3,443)

5,885(30,556)(4,656)755(41,322)

381

202

3,385

(4,274)958(37,936)

		Tax effect

1,299

(362)

11,530		

(2,975)595(26,406)¥(6,549)¥6,958$(58,124)

		Foreign currency translation adjustments

Remeasurements of defined benefit plans:
Amount incurred during the fiscal year
Reclassification adjustment
		

Prior to deducting tax effectRemeasurements of defined benefit plans

Total other comprehensive income

12. Cash and Cash Equivalents
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, 2016 and 2015 were as follows:

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

2016¥65,733

Millions of yen

Thousands of
U.S. dollars

2015¥62,0592016$583,363(5,409)(6,009)(48,008)¥60,323¥56,050$535,354

Assets and liabilities related to finance lease transactions newly recognized for the years ended March 31, 2016 and 2015 were ¥105 million(U.S. $931 thousand) and ¥186 million, respectively.
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, 2016 and 2015, 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, 2016 and 2015. 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, 2016 and 2015 were as follows:

Due within 1 year
Due after 1 year
Total

54

LINTEC ANNUAL REPORT 2016

2016
¥312

Millions of yen

Thousands of
U.S. dollars

2015
¥241

2016
$2,773

343

273

3,046

¥655

¥514

$5,820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 borrowings.
The Group makes use of derivatives only to reduce risk of foreign
currency exchange fluctuations and has a policy of not engaging inderivative transactions for speculative purposes.
(2) Details of financial instruments and associated risk andrisk management system
In the course of its business activities, the Group is exposed to credit risk
arising from trade notes and accounts receivable that are outstanding
from its customers. Regarding the risk pursuant to the internal regulations
for managing its credit exposure and trade receivables, due dates andbalances 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 borrowings are raised mainly for business activities and capital
investments.
The Group is exposed to liquidity risk from its business-related obligations
and borrowings but the Company and its consolidated subsidiaries prepare
and implement financing plans to manage the liquidity risk.
The Group conducts and manages derivative transactions based oninternal rules and regulations. Director of administration division is in chargeof 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. Estimated fair value and other matters related to financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2016 and 2015 along with their fair value and the variance were shown in the following table.
Thousands of
U.S. dollars

Millions of yen

2016(1) Cash and deposits(2) Trade notes and accounts receivable

Carrying value

Estimated
fair value

Variance¥ 65,733¥ 65,733¥—

62,331

62,331—

Carrying value

Estimated
fair value

Variance$ 583,363$ 583,363$—

553,176

553,176—(3) Investment securities
2,469

2,469

—

21,913

21,913—(4) Trade notes and accounts payable

Other securities(39,683)(39,683)—(352,177)(352,177)—(5) Short-term borrowings(1,695)(1,695)—(15,042)(15,042)—(6) Accrued income taxes(2,272)(2,272)—(20,172)(20,172)—(7) Derivative instruments

4

4

—

36

36

—

Note: i. Figures shown in parentheses are liability items.
ii. The value of assets and liabilities arising from derivative instruments is shown by net value.
Millions of yen
2015(1) Cash and deposits(2) Trade notes and accounts receivable

Carrying value

Estimated
fair value

Variance¥ 62,059¥ 62,059¥—

64,09464,094—(3) Investment securities
Other securities(4) Trade notes and accounts payable

2,656

2,656

—

(40,674)(40,674)—(5) Short-term borrowings(1,695)(1,695)—(6) Accrued income taxes(3,413)(3,413)—(7) Derivative instruments

(3)

(3)

—

Notes: i. Figures shown in parentheses are liability items.

LINTEC ANNUAL REPORT 201655

:: FINANCIAL SECTION

Note 1:	Method of computing the estimated fair value of financial instruments, securities andderivative instruments(1) Cash and deposits; (2) Trade notes and accounts receivable	Since these items are settled in a short period of time and have estimated fair values
that are virtually the same as the carrying value on the ledger, the carrying value has
been used.
(3) Investment securities
	The market value of investment securities is determined by the price of the stock
traded on an exchange market.
(4) Trade notes and accounts payable; (5) Short-term borrowings; (6) Accrued income taxes	Since these items are settled in a short period of time and have estimated fair values
that are virtually the same as the carrying value on the ledger, the carrying value has
been used.
(7) Derivative instruments
Please see Note 16, “Derivatives.”

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

Unlisted stocks

Thousands of
U.S. dollars

2016

2015

2016

Carrying value

Carrying value

Carrying value

¥656

¥656

$5,828The unlisted stocks in the preceding table do not have market values, and as estimating
their future cash flows is deemed to be extremely difficult, they are not included in the abovetable “(3) Investment securities.”
Note 3:	Planned redemption amounts after the balance sheet date for held-to-maturity
securities and receivables were as follows:
Millions of yen

Cash and deposits
Trade notes and accounts
receivable
Total

Thousands of
U.S. dollars

2016

2015

2016

Within 1 year

Within 1 year

Within 1 year

¥ 65,711¥ 62,005$   583,166

62,331¥128,043

64,094¥126,100

553,176$1,136,343

15. Marketable and Investment Securities
The carrying value and acquisition cost of other securities as of March 31, 2016 and 2015 were as follows:
Millions of yen

Thousands of
U.S. dollars

2016
Carrying value

Acquisition cost

Unrealized gain
(loss)

Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks¥2,143¥1,018¥1,124$19,021$ 9,037$ 9,983

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

¥2,143¥1,018¥1,124$19,021$ 9,037$ 9,983

Description

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

Stocks¥   325¥   495¥  (169)$ 2,892$ 4,400$(1,507)

Bonds

—

—

—

—

—

—

Other

—

—

—

—

—

—

Subtotal¥   325¥   495¥  (169)$ 2,892$ 4,400$(1,507)

		Total¥2,469¥1,514¥   955$21,913$13,438$ 8,475

Millions of yen

2015
Carrying value

Acquisition cost

Unrealized gain
(loss)

Stocks¥2,163¥   976¥1,187

Bonds

—

—

—

Other

—

—

—

¥2,163¥   976¥1,187

Stocks¥   492¥   522¥     (29)

Bonds

—

—

—

Other

—

—

—

Subtotal¥   492¥   522¥     (29)		Total¥2,656¥1,498¥1,157

Description

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

56

LINTEC ANNUAL REPORT 2016

16. Derivatives
Derivative transactions to which the Company did not apply hedge accounting as of March 31, 2016 and 2015 were as follows:(Currency related)

Millions of yen

2016
Contract amounts
Total

Over 1 year

Estimated
Fair value

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

¥422

¥—

¥5

¥5

Buy : Korean won (sell U.S. dollars)

114

—

(1)

(1)

Buy : Korean won (sell Japanese yen)

30

—

(0)

(0)

¥567

¥—

¥4

¥4

Nature of transaction

Off-market transactions

Unrealized gain
(loss)

Forward exchange contracts to:		TotalThousands of U.S. dollars

2016
Contract amounts
Total

Over 1 year

Estimated
Fair value

Unrealized gain
(loss)

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

$3,748

$—

$ 52

$ 52

Buy : Korean won (sell U.S. dollars)

1,017

—

(14)

(14)

Buy : Korean won (sell Japanese yen)

273

—

(0)

(0)

$5,039

$—

$ 36

$ 36

Nature of transaction

Off-market transactions

Forward exchange contracts to:		TotalNote: Method of computing the estimated fair value is based on information provided by financial institutions at the end of the fiscal year.
Millions of yen

2015
Contract amounts
Nature of transaction

Off-market transactions

		Total

Total

Over 1 year

Estimated
Fair value

Unrealized gain
(loss)

Forward exchange contracts to:
Sell : U.S. dollars (buy Japanese yen)

¥305

¥—

¥(1)

¥(1)

Buy : Korean won (sell U.S. dollars)

112

—

(1)

(1)

Buy : Korean won (sell Japanese yen)

33

—

(0)

(0)

¥451

¥—

¥(3)

¥(3)

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

LINTEC ANNUAL REPORT 201657

:: FINANCIAL SECTION

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, 2016 and 2015.
1. Defined benefit plans(1) Reconciliation statement for the beginning balance and the ending balance of retirement benefit obligations

Retirement benefit obligations at beginning of year
Cumulative effects of changes in accounting policies

2016¥33,518

Millions of yen

Thousands of
U.S. dollars

2015¥36,7882016$297,467―(4,235)―

Restated balance

33,51832,552

297,467

Service cost

1,352

1,539

12,007

Interest cost

426

430

3,784

Actuarial gains (losses)

3,971

203

35,243Retirement benefits paid

(1,390)(1,511)(12,341)

Abolishment of retirement benefit plan

(1,330)―(11,805)

Increase (decrease) from foreign currency translation

(46)

247

(416)

Other

48

57

428

¥36,549¥33,518$324,369

Millions of yen

Thousands of
U.S. dollars

2015¥20,779

2016$243,953

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

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

Plan assets at beginning of year2016
¥27,488

Expected return on plan assets

733

711

6,505

Actuarial gains (losses)

(802)

1,018

(7,122)Contributions from the employer

536

5,561

4,761

Retirement benefits paid

(1,336)(776)(11,864)

Abolishment of retirement benefit plan

(1,361)—(12,085)

6

195

54

(189)

—

(1,685)¥25,073¥27,488$222,517

Increase (decrease) from foreign currency translation
Other
Plan assets at end of year

Note: “Contributions from the employer” for the year ended March 31, 2015 includes contribution of ¥5,000 million to retirement benefit trust.

(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
Thousands of
U.S. dollars

Retirement benefit obligations of a funded pension plan2016
¥ 35,8672015¥ 32,818

2016$ 318,311

Plan assets(25,073)(27,488)(222,517)

10,793

5,330

95,793

682

699

6,058

Net amount of liabilities and assets recorded in the consolidated balance sheet¥ 11,476¥   6,029$ 101,851

Net defined benefit liability¥ 11,476¥   7,853$ 101,851―(1,823)―¥ 11,476¥   6,029$ 101,851

Retirement benefit obligations of an unfunded pension plan

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

58

Millions of yen

LINTEC ANNUAL REPORT 2016

(4) Components of retirement benefit expenses

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
Special retirement expenses
Loss on abolishment of retirement benefit plan2016
¥1,352
426
(733)
400
(284)
(7)
¥1,155¥   438
265

Millions of yen

Thousands of
U.S. dollars

2015¥1,539
430
(711)
487
(284)
—
¥1,460
¥   —
―

2016
$12,007
3,784(6,505)3,555(2,524)(64)$10,253$ 3,893
2,354

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. “Special retirement expenses” and “Loss on abolishment of retirement benefit plan” are recognized in extraordinary loss.

(5) Remeasurements of defined benefit plans
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

2016
¥   284
3,990¥4,274

Millions of yen

Thousands of
U.S. dollars

2015¥   284(1,242)¥  (958)2016$ 2,524
35,412$37,936(6) Remeasurements of defined benefit plans
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

2016
¥  (828)
5,886¥5,057

Millions of yen

Thousands of
U.S. dollars

2015¥(1,112)1,895¥   7822016$ (7,351)
52,236$44,884(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, 2016 and 2015 was as follows:
Bonds
StocksCash on hand and in banks
Other
Total

2016
56.8%
20.0%
20.4%
2.8%
100.0%

2015
52.6%
20.1%
24.8%
2.5%
100.0%

2. Method for determining the long-term expected rate of return on plan assets
		In determining the long-term expected rate of return on plan assets, estimates are considered based on the current and expected allocationof plan assets and the long-term current and expected rate of return from the various assets comprising the plan assets.
(8) Major actuarial assumptions as of March 31, 2016 and 2015 were as follows:
Discount rateLong-term expected rate of return on plan assets
Expected rates of pay raises

2016
Mainly 0.5%
Mainly 3.5%
Mainly 2.8%

2015
Mainly 1.3%
Mainly 3.5%
Mainly 2.8%

2. Defined contribution plan
Some of the consolidated subsidiaries contributed ¥171 million (U.S. $1,521 thousand) and ¥144 million, for the years ended March 31, 2016 and 2015 to
the defined contribution plans, respectively.

LINTEC ANNUAL REPORT 2016

59

:: FINANCIAL SECTION

18. Stock Option Plan
Components of stock-based compensation expense for the years ended March 31, 2016 and 2015 were as follows:

Cost of sales
Selling, general and administrative expenses

Millions of yen

Thousands of
U.S. dollars

2016
¥ 4

2015
¥ 3

2016
$ 42

28

29

253

The following table summarizes contents of stock options as of March 31, 2016:
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
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
Period of providing service for stock options
Exercise period
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
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
Period of providing service for stock options
Exercise period
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
60

LINTEC ANNUAL REPORT 2016

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

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

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

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 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
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 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 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

LINTEC ANNUAL REPORT 2016

61

:: FINANCIAL SECTION

The following tables summarize the scale and movement of stock options for the years ended March 31, 2016 and 2015:(Non-vested stock options)
Stock options outstanding
at April 1, 2015
Stock options granted
Forfeitures	Conversion to vested
stock options
Stock options outstandingat March 31, 2016

(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

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
—
—

—
14,600
—

—

—

—

—

—

—

—

—

—

14,600

—

—

—

—

—

—

—

—

—

—

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

4,900

4,500

7,900

12,00010,9007,600

14,50022,00018,300

—

—
1,600
—

—
1,600
—

—
2,700
—

—
4,300
—

—
3,700
—

—
800
—

—
900
—

—
1,400
—

—
1,100
—

14,600
—
—

3,300

2,900

5,200

7,700

7,200

6,800

13,60020,60017,20014,600(Vested stock options)
Stock options outstanding
at April 1, 2015
Conversion fromnon-vested stock options
Stock options exercised
Forfeitures
Stock options outstandingat March 31, 2016

(unit: shares)

The following table summarizes the price information of stock options as of March 31, 2016:

Exercise price
Average market price of thestock at the time of 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¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1¥    1

2,546
2,788

2,546
1,947

2,510
1,481

2,510
1,726

2,510
1,474

2,746
1,303

2,746
1,203

2,746
1,595

2,746
1,825

—
2,283

The fair value of stock options granted during the year ended March 31, 2016 was valued by using the Black Scholes option pricing model with thefollowing assumptions:
The 2015 plan

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.

62

LINTEC ANNUAL REPORT 201635.883%10 years¥ 48
0.360%

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 33.06% and 35.64% for the years ended March 31, 2016 and 2015, 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 ofincome for the years ended March 31, 2016 and 2015 differ from the statutory tax rate for the following reasons:2016
33.06%

2015
35.64%

0.40(10.49)0.34(8.77)(2.93)
5.52
13.95
1.53
3.28
35.89%

0.39(10.66)0.31(7.36)(2.38)
2.05
10.95
2.83
1.83
33.60%

Millions of yen

Thousands of
U.S. dollars

2016

2015

2016

¥    698
135
720
3,462
1,348
497
269
121
371
385
575
8,587
(912)
7,675

¥    740
182
413
2,421
1,616
498
246
102
435
299
613
7,570
(406)
7,163

$   6,201
1,205
6,390
30,726
11,970
4,415
2,393
1,082
3,300
3,422
5,107
76,215(8,096)
68,118

(192)
(253)
(211)
(846)
―
(97)
(1,601)¥ 6,074

(208)
(325)
(274)
(435)
(595)
(62)
(1,902)¥ 5,260(1,708)(2,249)(1,873)(7,515)―(865)(14,211)$ 53,906

Millions of yen

Thousands of
U.S. dollars

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

2. The significant components of deferred tax assets and liabilities as of March 31, 2016 and 2015 were as follows:

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 depreciation expense
Other
		 Gross deferred tax assets
Valuation allowance
Deferred tax liabilities:
Revaluation of fixed assets in accordance with special tax measures
Net unrealized holding gain on securities
Depreciation expense of subsidiaries
Dividend income from consolidated subsidiaries
Net defined benefit asset
Other
		

Net deferred tax assets

Note: The net deferred tax assets as of March 31, 2016 and 2015 were included in the following items on the consolidated balance sheets:

Current assets-Deferred tax assets

2016¥1,1212015¥1,8792016$ 9,949

Noncurrent assets-Deferred tax assets

4,978

3,578

44,179Current liabilities-Other

14

17

128

Noncurrent liabilities-Other

10

178

94

LINTEC ANNUAL REPORT 2016

63

:: FINANCIAL SECTION

3. Adjustments of deferred tax assets and liabilities due to the change of statutory tax rate
In accordance with the establishment in the national assembly on March 29, 2016, of the “Act for Partial Revision of the Income Tax Act” and the “Act for
Partial Revision of the Local Tax Act,” the statutory effective tax rate used to calculate the Company’s deferred tax assets and liabilities (limited tosettlements made after April 1, 2016) was changed from 32.3% to 30.9% for taxable items between April 1, 2016 and March 31, 2018, and to 30.6% fortaxable items after April 1, 2018.
Due to the change, the net amount of deferred tax assets decreased by ¥327 million (U.S. $2,909 thousand), deferred income taxes increased by¥257 million (U.S. $2,282 thousand), net unrealized holding gain on securities increased by ¥13 million (U.S. $123 thousand), and remeasurementsof defined benefit plans decreased by ¥84 million (U.S. $750 thousand) for the year ended March 31, 2016.
20. Business Combinations
There is no business combination for the year ended March 31, 2016.
21. Asset Retirement Obligations
There is no asset retirement obligation as of March 31, 2016 and 2015.
22. Rental Property
No specific disclosure for rental property has been made as of March 31, 2016 and 2015 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 from otherbusiness 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
Printing and Industrial Materials
Products

Main products and services
Adhesive products for seals and labels, Label printing machines, Barcode printers, Labeling machines, Automobile-use
adhesive products, Industrial-use adhesive tapes, Window films, Films for outdoor signs and advertising, Interior
finishing mounting sheets

Electronic and Optical Products

Semiconductor-related adhesive tapes, Semiconductor-related equipment, Multilayer ceramic capacitor-related tapes,
LCDs-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 general-use, 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.

64

LINTEC ANNUAL REPORT 2016

3. Information on sales and income (loss), assets, and other items by reportable segment for the years ended March 31, 2016 and 2015 are outlined asfollows:
Millions of yen

2016
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Adjustments

Consolidation¥87,638¥85,422¥37,440¥210,501¥     —

¥210,501

461

473

17,135

18,070(18,070)—¥88,100¥85,895¥54,576¥228,572¥(18,070)¥210,501¥ 2,785¥10,562¥ 4,303¥ 17,651¥     40

¥ 17,692

Depreciation and amortization¥ 2,974¥ 3,068¥ 2,757¥  8,800¥     —¥  8,800

Amortization of goodwill¥    71¥    —¥    —¥     71¥     —

¥     71

Net sales
Net sales to external customers
Intra-segment sales and transfers
Total
Segment income
OthersThousands of U.S. dollars

2016
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Adjustments

Consolidation$777,766$758,098$332,274$1,868,139$       —

$1,868,139

4,095

4,200

152,072

160,369(160,369)—$781,862$762,298$484,347$2,028,508$(160,369)$1,868,139$ 24,723$ 93,737$ 38,194$  156,655$     356$   157,011

Depreciation and amortization$ 26,397$ 27,235$ 24,470$   78,102$       —$   78,102

Amortization of goodwill$    636$     —

$     —

$      636$       —

$      636

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

2015
Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Adjustments

Consolidation¥86,764¥83,207¥37,283¥207,255¥     —

¥207,255

61

73

17,281

17,417(17,417)—¥86,826¥83,281¥54,564¥224,672¥(17,417)¥207,255¥ 2,878¥10,071¥ 3,996¥ 16,946¥    (64)¥ 16,881

Depreciation and amortization¥ 2,919¥ 3,155¥ 2,638¥  8,713¥     —¥  8,713

Amortization of goodwill¥    76¥    —¥    —¥     76¥     —

¥     76

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

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

Thousands of U.S. dollars

2016
Sales

Japan

Asia

Others

Total

Japan

Asia

OthersTotal¥128,239¥70,301¥11,960¥210,501$1,138,084$623,906$106,148$1,868,139

50,303

12,914

1,641

64,859446,427

114,614

14,564575,607

Property, plant and equipment

Note: Sales information is based on location of customers and it is classified by country or region.
Millions of yen
2015

Sales

Japan

Asia

OthersTotal¥126,914¥69,593¥10,747¥207,255

45,945

13,901

1,655

61,503

Property, plant and equipment

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

3. Information by principal customers
Millions of yen

Name of the customer

Related reportable segment

Sumitomo Chemical Company, Limited

Electronic and Optical Products

Thousands of
U.S. dollars

2016

2015
Sales

2016

¥―

¥21,383$―

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,
2016, it has been omitted.
Information on impairment losses on noncurrent assets by reportable segment
There is no impairment loss on noncurrent assets for the year ended March 31, 2016.
Millions of yen

2015

Impairment loss

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥674

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.

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LINTEC ANNUAL REPORT 2016

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

2016

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥22

Thousands of U.S. dollars

2016

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

$—

$—

$—

$—

$200

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

2015

Unamortized amount of goodwill

Printing andIndustrial Materials
Products

Electronic and
OpticalProducts

Paper andConverted
Products

Total

Consolidation

¥—

¥—

¥—

¥—

¥93

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, 2016 and 2015.
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, 2016 and 2015 were as follows:
Millions of yen

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

At year-end

Thousands of
U.S. dollars

2016

2015

2016

¥11,578¥11,431$102,756

5,053

4,969

44,852Millions of yen

Thousands of
U.S. dollars

2016

2015

2016

Trade notes and accounts receivable¥4,085¥ 4,034$36,256

Trade notes and accounts payable

1,979

1,804

17,568

33

47

296

Yen

U.S. dollars

Other liabilities

These 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, 2016 and 2015 were as follows:
2016

2015

2016

¥2,370.49¥2,363.81$21.04

Net income (basic)

151.07161.63

1.34

Net income (diluted)

150.86161.41

1.34

Net assets

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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)]Millions of yen

Thousands of
U.S. dollars

2016

2015

2016

¥10,899—¥10,899
72,144¥11,659—¥11,659
72,134$96,726—$96,726
72,144¥    —
102[102]¥     —98
[98]$     —
102
[102]

Millions of yen

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

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)

2016

2015

2016

¥172,101
1,064
[169]
[895]
¥171,037
72,152¥171,674
1,159
[166]
[992]
¥170,514
72,135$1,527,350
9,445[1,502][7,943]$1,517,904
72,152

26. Short-Term Borrowings, Long-Term Debts 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 0.27% to 0.66% at March 31, 2016 and from 0.33% to 0.68% at March 31, 2015.
Short-term borrowings as of March 31, 2016 and 2015 consisted of the following:Thousands of
U.S. dollars

Millions of yen

Short-term bank loans
Current portion of long-term debt

2016

2015

2016

¥1,695—¥1,695¥1,695—¥1,695$15,042—$15,042Millions of yen

Thousands of
U.S. dollars

Other interest-bearing debts as of March 31, 2016 and 2015 consisted of the following:

Short-term lease obligation
Long-term lease obligation

2016

2015

2016

¥196
349

¥199
471

$1,7403,098

Planned repayment amounts after the balance sheet date (March 31, 2016) for long-term debt and lease obligation are as follows:
Millions of yen

Thousands of U.S. dollars

2016

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

¥164

¥118

¥61

¥4

$1,457$1,054$545$38

27. Subsequent Event
The following distribution of retained earnings was approved at a meeting of the board of directors held on May 10, 2016.
Millions of yen

Thousands of
U.S. dollars¥1,948$17,289

2016
Cash dividends (¥27 per share)

68

LINTEC ANNUAL REPORT 2016

Management’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 Hitoshi Asai, Director, Vice President Executive Officer &Chief Financial Officer of LINTEC Corporation, are responsible for designing and operating adequate internal control over financial reporting for consolidated financial statements of LINTEC Corporation and consolidated subsidiaries (the “Company”) in accordance with the basic framework set forth in“Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over Financial Reporting” issued by BusinessAccounting Council.
Internal control achieves its objectives to a reasonable extent given that all individual components of internal control are integrated and function
as a whole. Internal control over financial reporting for consolidated financial statements may not completely prevent or detect misstatements in financial reporting.
Scope of Assessment, Assessment Date and Assessment Procedure
We assessed the effectiveness of the Company’s internal control over financial reporting for the accompanying consolidated financial statements asof March 31, 2016 in accordance with the standards for assessment of internal control over financial reporting generally accepted in Japan. For thisassessment, we first evaluated the company-level controls which would have a material impact on the reliability of overall financial reporting on aconsolidated 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 thatwould have a material impact on the reliability of the financial reporting, and assessing the design and operation of such key controls.
We determined the scope of assessment by selecting consolidated subsidiaries based on their materiality of impact on the reliability of financial
reporting. We determined their materiality of impact by considering both quantitative and qualitative aspects. The scope of our process-level control
assessment was determined based on the results of our assessment of company-level controls, which included its 16 consolidated subsidiaries.
We excluded 18 consolidated subsidiaries from the scope of the company-level control assessment since their quantitative and qualitative impacts weredeemed insignificant.
For the purpose of determining the scope of process-level controls assessment, we selected 2 consolidated subsidiaries 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, 2015. For
the Significant Business Locations, we primarily included business processes related to sales, accounts receivable, and inventory in the scopeof assessment as the aforementioned accounts were closely associated with the Company’s business objectives. In addition, we included certain
business processes in the scope of assessment not only from “Significant Business Locations” but also from all subsidiaries and affiliates, which wererelated to significant accounts involving estimates and management’s judgment or include high-risk operations and/or transactions, as “businessprocesses 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, 2016 was effective.

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Report of Independent Auditors

70

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LINTEC ANNUAL REPORT 2016

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Investor Information
As of March 31, 2016

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¥172,101 million
Common Stock
Authorized: 300,000,000 shares
Issued: 76,564,240 shares
Stock Listing
Tokyo Stock Exchange, 1st Section
Securities Code: 7966
Shareholder Register Agent for Common Stock
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku,
Tokyo 100-8212, Japan
Number of Employees
4,246 (Consolidated)
2,535 (Parent company only)
Major Shareholders
Nippon Paper Industries Co., Ltd.�������������������������������������������������������������������� 30.1 2%
Japan Trustee Services Bank Ltd. (Trust Account)������������������������������������� 3.20%
National Mutual Insurance Federation of Agricultural Cooperatives���� 3.1 8%
Ichigo Trust�������������������������������������������������������������������������������������������������������������������� 2.49%
Tamie Shoji������������������������������������������������������������������������������������������������������������������� 2.49%

Ownership and Distribution of Shares

Major Subsidiaries * Consolidated Subsidiary
Domestic
LINTEC COMMERCE, INC.*
LINTEC SIGN SYSTEM, INC.*
FUJI-LIGHT, INC.*
LINTEC SERVICES, INC.
LINTEC CUSTOMER SERVICE, INC.
PRINTEC, INC.
TOKYO LINTEC KAKO, INC.
OSAKA LINTEC KAKO, INC.
Overseas
LINTEC USA HOLDING, INC.*
MADICO, INC.*
LINTEC OF AMERICA, INC.*
LINTEC EUROPE B.V.*
LINTEC ADVANCED TECHNOLOGIES (EUROPE) GMBH*
LINTEC (SUZHOU) TECH CORPORATION*
LINTEC (TIANJIN) INDUSTRY CO., LTD.*
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 BKK PTE LIMITED*
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*
Share Price / Trading Volume
Share Price
Share Price¥¥3,500Financial Institutions.............................. 17.54%

3,500
3,000
3,000

Individuals and Other.............................. 16.38%

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

Treasury Stock.......................................... 5.76%

Trading Volume
Trading Volume

Securities Companies............................... 1.23%
Other Companies.................................... 33.66%
Overseas Companies.............................. 25.43%

Million shares
Million15 shares

15
12
12
9
9
6
6
3
3
0
0

72

LINTEC ANNUAL REPORT 2016

Apr. 2013
Apr. 2013

Apr. 2014
Apr. 2014

Apr. 2015
Apr. 2015

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

Printed on LINTEC high-grade printing paper and fancy paper

Printed in Japan