CSR Report 2011

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Lintec in Everyday Life

- PV backsheets 2 Architectural window films ' Automotive window films . Marking films

Lintec’s products play an active rolein all areas of life.

( Casting paper for carbon fiber composite material + LCD films  Coated films for manufacturing/ Interior decorative laminates 4 Specialty papers 0 Materials for seals and labels

multilayer ceramic capacitors

Editorial Policy

Contents
Message from the President

1

Lintec CSR

2Special Feature
Stakeholder Dialogue

4

CSR Themes, Targets and Performance

6

Environmental Report

Corporate Governance
Practicing Sincerity
gCorporate Governance
gCompliancegRisk Management
gHelpline

Communicating with Stakeholders
20
gCommunicating with Customers
gCommunicating with Suppliers
gCommunicating with Local Communities
gCommunicating with Employees
gCommunicating with Shareholders andOther Investors

8

Social Report
10
Providing Value to Customers
gQuality Policy
gImproving Customer Satisfaction
11
Cooperating with Suppliers
gFair Transactions
Keep Employees Safe
12
(Safety and Disaster Prevention)
gOccupational Safety
gCrisis Management during a Disaster
Creating Comfortable Workplaces:
Health Management, Employment,
14
and Human Rights
gHealth Management
gMeasures against Harassment
gRespecting Diversity
gWork-Life Balance
gVolunteer Support ProgramgManagement Labor Relations
16
Human Resources Development
gCompany-wide Rank-based Training Programs
gSelf-development Correspondence Training Courses
gIndividual Education Programs
gEnvironmental Education
18
Participating in Local Communities
gSocial Contribution Initiatives

22
Environmental Management System
gEnvironmental Management System:
Efforts to Obtain Integrated Certification
gInternal Environmental Auditing
gEnvironmental Compliance
Developing Environmentally
23
Friendly Products
gGuidelines for Environmentally Friendly Products
gDeveloping Products that Help Reduce
Environmental Impact
24Fighting Climate Change
gEfforts in ManufacturinggEfforts in Distribution
26
Reducing Waste
gAmounts of Waste Generated and Effectively Used
g3R Efforts
Measures to Reduce Water Usage27
and Effluent
gWater Usage
gWater Conservation MeasuresgEffluent Quantity and Quality
Reduction of Chemicals with
28
Environmental Impact
gPRTR Compliance
gComplying with EU Regulations
gProper Storage and Management of
Polychlorinated Biphenyl (PCB)
gDealing with Asbestos
gReduction of Volatile Organic Compounds (VOCs)
Environmental Accounting
29
Environmental Activities of Eight Group30
Companies Outside Japan
Relationship between Lintec
32
and the Environment
Corporate Profile
Results of Employee Survey
regarding the CSR Report 2010

33
33

The basic layout has been reorganized into three
sections—corporate governance, social report, andenvironmental report—for ease of comparison of
disclosed items. A stakeholder dialogue featuring
an exchange of views with an outside expert has
been included to ensure the report is cognizant ofchanges in the social landscape.

Guidelines Referenced
Environmental Reporting Guidelines (2007) of the
Ministry of the Environment of Japan
Sustainability Reporting Guidelines (version 3.1) of
the Global Reporting Initiative (GRI)
Environmental Accounting Guidelines (2005) of the
Ministry of the Environment of JapanISO 26000 (Social responsibility)

Reporting Period
This report covers the period from April 1, 2010, to
March 31, 2011 (fiscal 2010). It also includes some
information up through June 30, 2011, concerning
specific initiatives. Environmental performance data
for eight group companies outside Japan covers
the period from January 1 to December 31, 2010.

Scope
In JapanThis report covers Lintec Corporation and Tokyo
Lintec Kako, Inc. However, the section entitled“Environment Report” covers the head office ofLintec Corporation, Agatsuma Plant, Kumagaya
Plant, Chiba Plant, Tatsuno Plant, Shingu Plant,
Komatsushima Plant, Mishima Plant, Doi Plant,
Niihama Plant, Ina Technology Center, ResearchCenter, and Tokyo Lintec Kako, Inc.

Outside Japan
This report covers the following companies
outside Japan: Lintec (Suzhou) Tech Corporation,
Lintec (Tianjin) Industry Co., Ltd., Lintec Speciality
Films (Taiwan), Inc., Lintec Korea, Inc., Lintec
Speciality Films (Korea), Inc., PT. Lintec Indonesia,
Lintec Industries (Malaysia) Sdn. Bhd., and Lintec
Industries (Sarawak) Sdn. Bhd.

Wording
In this report, “Lintec” refers to Lintec Corporation,“Lintec Group in Japan” refers to Lintec
Corporation and Tokyo Lintec Kako, Inc., and“Lintec Group” refers to the above Lintec Group in
Japan plus group companies outside Japan.
Publication date: November 2011
Next publication: November 2012

Message from the President

At Lintec, we work hard to fulfill our responsibilities
as a global company. Inspired by the spirit of CSR
expressed by our company motto, “Sincerity andCreativity,” our entire team is determined to createchange and accelerate innovation.
Since the Great East Japan Earthquake, Japan has received support from many
countries around the world. I would like to take this opportunity to express my heartfelt
appreciation. I would also like to offer my heartfelt condolences to everyone affectedby the disaster and express my hope for the quickest possible recovery of the devastatedareas. The Lintec Group did not sustain any major damage, so we were able to send
financial assistance and 300,000 masks to help the afflicted areas. Looking to the future,
we will continue to develop systems for managing a wide variety of risks, including
natural disasters and the challenge of temporary electricity shortages.
Since its founding in 1927, Lintec has made the most of its powerful original technologies in the field of adhesives todevelop and introduce an extensive portfolio of products that meet social needs. To list just a few, today we offer products
as diverse as adhesive papers and films for seals and labels, processing materials for outdoor signs and interior decor,
various adhesive materials for building and automotive applications, PV backsheets, tape and equipment for semiconductor
manufacturing, optical function film, color envelope paper and other specialty papers, and casting paper for carbon fiber
composite materials and synthetic leather. With this broad range of offerings, Lintec touches practically every aspect ofmodern life.
Our commitment to craftsmanship is based on our company motto, “Sincerity and Creativity.” Sincere, creative
craftsmanship should be the starting point of the CSR spirit for every manufacturer, and it certainly is at Lintec. We arecommitted to creating sustainable growth by doing business in a transparent and thoroughly respectable manner andcapitalizing on the ingenuity that we gain from our determination to innovate. Simply put, we see CSR as an integral part ofour core business and practice both careful safeguards and proactive initiatives to fulfill it.
Companies can only continue to grow and develop if society as a whole does. No company can attain sustainable growthfor itself without fostering social progress. This is why, at Lintec, we see CSR initiatives as an indispensable element of
everything we do.
In fiscal 2010, Lintec posted record performance, overcoming the challenging business environment that has persisted
since the global recession began. In March 2011, we also established a new medium-term business plan—the Lintec
Innovation Plan III (LIP-III)—covering the three years from April 2011 to March 2014. In LIP-III, we set out the visionof “achieving sustainable growth and maximizing corporate value through aggressive and bold innovation.” To see thisvision through, we are working at four important themes: strengthening and expanding our overseas business, especially in
Asia; expanding our domestic business and increasing its profitability by optimizing quality, cost, and delivery time (QCD);
creating original new products that will support future growth; and strengthening global business management.
None of these initiatives can be detached from CSR. As we strive to create original new products, for example, we aremaking every effort to develop environmentally friendly products, such as photovoltaic cell components that make the mostof natural energy and window films that help conserve energy.
Moreover, as we strengthen our global management, we will push ahead with efforts to acquire globally integrated ISO
14001 certification and will utilize the ISO 26000 guidance on social responsibility issued in November 2010. Additionally,in April this year Lintec announced its participation in the UN Global Compact. In these ways and many more, we aredetermined to ensure that our business operations fulfill all the responsibilities of a leading global enterprise.
This report summarizes the Lintec Group’s CSR initiatives, focusing on those undertaken during the past year. Your
understanding of our business endeavors is very important to us, and we invite your frank review and assessment of our progress.

Akihiko Ouchi
President and CEO
Lintec Corporation1Lintec CSRº-ViÀÌÞÊ>`Ê Ài>ÌÛÌÞ»p/ iÊÕ`>ÌÊvÊÌiV½ÃÊ -,The foundation of the Lintec Group’s CSR is its company
motto, “Sincerity and Creativity.” These are the ideals that
we aspire to.
“Sincerity” means thinking about what can be donethat will be of benefit and appreciated and tackling every
task with all one’s heart.
“Creativity” means to work constantly to innovate
and improve, seeking greater added value without being
satisfied with the status quo. Showing integrity to all
stakeholders and taking on new challenges over and overagain with a determination to innovate is the starting
point for a manufacturer dedicated to craftsmanship.
“Start with Sincerity and then apply Creativity”—this is
Lintec’s unchanging approach and the driving force that
underpins its sustainable growth.

Lintec carries out CSR initiatives in line with six basic
approaches. The CSR Management Office, established
as an organization under the direct control of thepresident, strives to inspire a deeper and fuller CSR spirit,
to foster and disseminate high ethical standards, and tosupport the initiatives of the six CSR committees. The
six CSR committees, which have a cross-organizational
membership and each include an officer in charge,
lead initiatives with responsibility from the standpointof management. Additionally, business operations are
conducted in accordance with Compliance Guidelines,
the Quality Policy, the Procurement Policy, and theEnvironmental Charter established based on Lintec’s
company motto, mission statement and basic
CSR approaches.

Basic CSR Approaches
UÊ/ ÀÕ} Ê«iiÌ>ÌÊvÊVÀ«À>ÌiÊiÌ VÃÊand complianceUÊ->viÌÞÊ>`Ê i>Ì Ài>Ìi`Ê>VÌÛÌiÃ
We will create safe, reassuring work environments andensure healthy, fulfilling lifestyles for our employees andtheir families.

We will take steps to ensure the prevention of
misconduct by enhancing employee training andstrengthening the corporate constitution, with anemphasis on strict self-discipline as a company
and as individuals.

UÊ-V>ÊVÌÀLÕÌÃ
We will contribute to local communities, not only
through economic support but through a range ofinitiatives.

UÊ«ÀÛi`ÊVÕÃÌiÀÊÃ>ÌÃv>VÌWe will endeavor to improve product costs, quality,
safety, and services and to manufacture products fromthe customer’s viewpoint.

UÊ- >Ài `iÀÊ>`ÊÛiÃÌÀÀiÌi`Êmanagement
We will strive to enhance the corporate brand throughdisclosure activities and initiatives to enhance thecompany’s visibility.

UÊ ÛÀiÌvÀi`ÞÊ«iÀ>ÌÃ
We will implement environment-friendly initiatives,
such as ensuring the effective use of energy and otherresources in our business activities, and strive to achievesustainable growth.

CSR Promotion System
President and CEO(As of April 1, 2011)

CSR Management Office

Audit Office
Corporate Strategic Office

Corporate Ethics Committee

Public Relations Office

Investor Relations Committee

General Affairs & Personnel Division

Customer Satisfaction Committee

Administration Division

Environmental Preservation Committee

Business Administration Division
Quality Assurance & Environmental Protection Division

Social Contribution Committee
Safety, Disaster Prevention, and Health Committee

2

Activities of the CSR Management
OfficeUÊÀÕ>ÌÊvÊL>ÃVÊ«ViÃÊÊ
implementing CSR
UÊ-Õ«iÀÛÃÊvÊÌ iÊ«>}ÊvÊÌ iÊÛiÀ>Ê
activities of the six committeesUÊÌÀ}]Ê>Õ`Ì}]Ê>`ÊÃÕ««ÀÌ}ÊÌ iÊ
activities of each committeeUÊ*À«ÌÊÀi«ÀÌ}ÊvÊ«ÀÌ>ÌÊ>ÌÌiÀÃÊÌÊ
board directors and auditors

Production Division

UÊ-iVÀiÌ>À>ÌÊvÊÌ iÊ,ÃÊÃÃiÃÃiÌÊ ÌÌiiResearch & Development DivisionUÊ"Ì iÀÊÃÃÃ*Êi`Õ/iÀÊ ÕÃiÃÃÊ*>

iÜÊ*Êi`Õ/iÀÊ ÕÃiÃÃÊ*>Êand Practice of CSR in Core Business

Based on a vision of achieving sustainable growth andmaximizing corporate value through aggressive and boldinnovation, we will work on four critical goals: (1) strengthen
and expand overseas businesses; (2) expand domestic
businesses and increase profitability by optimizing QCD; (3)create original new products that will support future growth;and (4) strengthen global business management. Especiallyin regards to strengthening global business management,
the plan includes implementing all corporate activities with acommitment to CSR-driven management, participation in the
UN Global Compact, and utilization of ISO 26000 guidance onsocial responsibility.

In the LIP-III medium-term business plan that started in
April 2011, we included a commitment to implementing
all corporate activities with a commitment to CSR-driven
management and pledged to stress the importance of the
CSR perspective as Lintec expands its business globally.
Determined to address social needs and issues, wewill fully embrace the challenge of achieving sustainablegrowth and maximizing corporate value throughaggressive and bold innovation. We believe that these
efforts will help to build a more sustainable world.

Numerical goals (year ending March 2014)

Strengthen and expand
overseas businesses (Target
overseas sales ratio: 40%)

U Ã`>Ìi`ÊÃ>iÃ .............................................. ÓÈäÊLÊÞiU Ã`>Ìi`Ê«iÀ>Ì}ÊVi ......................... ÓÈ°äÊLÊÞiU "«iÀ>Ì}ÊViÊ>À} ................................. ÀiÊÌ >Ê£ä¯U ,iÌÕÀÊÊ µÕÌÞÊ­," ® ..................................... ÀiÊÌ >Ê£ä¯U ,iÌÕÀÊÊÛiÃÌi`Ê >«Ì>Ê­," ® ..................... ÀiÊÌ >Ê£ä¯

Expand domestic businesses
and increase profitability by
optimizing QCD

LIP-IIId todaybuilemCompany Motto

Sincerity andCreativity

Key initiative

Key initiative

Key initiative

3

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Mission Stat

Key initiative

In April 2011, Lintec announced that it would participate
in the UN Global Compact. The UN Global Compact is an
initiative for businesses around the world to work at being
global citizens by supporting 10 principles in the areas ofhuman rights, labour, the environment, and anti-corruption.
Going forward, the Compact will serve as a guideline for
Lintec’s global management.

1Ìâ>ÌÊvÊ-"ÊÓÈäääÊÕ`iiÃÊvÀÊ-V>Ê,iÃ«ÃLÌÞ
Released in November 2010, ISO 26000 is the firstinternational standard for organizational social responsibility.
Lintec will reference the ISO 26000 as it carries out initiatives
to strengthen global business management, which is one of
the key initiatives of LIP-III.

Strengthen global business
management

Stakeholder Map
The Lintec Group’s businessis supported by numerous
stakeholders, including customers,
suppliers, employees, shareholders
and investors, local communities,
and the global environment.

We will attempt to provide astable supply of products, tomanage quality, and to improve
service in order to meet customer
expectations and earn trust.

We will strive for fairand highly transparent
transactions, aiming formutual harmony andbenefit with all suppliers.

Customers
p10, p20

Suppliersp11, p20

We will endeavor to create
workplace environments where
employees can work with peace ofmind while respecting employees’
motivations in life and work,
based on the goal of raising
employee satisfaction.

Employees
pp12-17, p20

GlobalEnvironment
pp22–32

We will contribute to the creation of anenvironmentally friendly society by striving
to reduce our environmental impact, taking
environmental protection as an important
requirement that forms the foundation of
corporate survival.

Shareholders
and Investors
p21

Local
Communities
pp18–20

We will meet the expectationsof shareholders and investors byincreasing management transparency, disclosing information
in a timely and appropriatemanner, and striving to increase
corporate value.

We will communicate withlocal communities and pursue
harmonious co-existence, basedon the idea that companies arecommunity members.

3

Special
FeatureStakeholder Dialogue

CSR-driven Management for Global Growth, andLeveraging Technical Strengths to Address Social Issues,i>}ÊÜÀÌ ÞÊvÊÃViÌÞ½ÃÊ
ÌÀÕÃÌ]ÊL>Ãi`ÊÊÕÀÊV«>ÞÊÌÌ]Ê
“Sincerity and Creativity”
Ouchi: The salient feature of CSR managementat Lintec is our company-wide CSR promotion
system based on six CSR committees establishedalong the lines of themes for CSR initiatives. This
began with the launch of a CSR committee headedby the vice president in 2004, the year I becamepresident. We understood that we had to address social
responsibility in everything Lintec does. For many
years Lintec has held to a management philosophyof contributing to society as a reliable company,
based on a foundation of harmony among people andtechnical development capabilities, as expressed inour company motto, “Sincerity and Creativity.” Ourinitiatives have benefited from this culture and today
the CSR committees proactively put CSR efforts into
practice, working under the CSR Management Office,which reports directly to me. Moreover, an officer
has been put in charge of each committee, and wehave clearly expressed a commitment to ensuring all
employees act with awareness of CSR. On the other
hand, our initiatives themselves are mainly carried out
by Lintec Corporation alone—or group companies
within Japan—so we need to work on expanding our
CSR initiatives globally. That is why we included acommitment to implementing all corporate activities
with a commitment to CSR-driven management in our
new LIP-III medium-term business plan that started thisfiscal year, took a stand with the UN Global Compact
4for human rights, labour, the environment, and anticorruption, and committed to utilizing ISO 26000.
Unno: In one survey, 70% of the CEOs of US
corporations said that sustainability is vital tomanagement going forward, indicating the directionof global CSR. The perception of social responsibility
has become more uniform since the release of the ISO
26000 last year, but what is important is to recognizethat CSR means “solving social challenges (i.e.,
meeting needs) through business operations that aim
to build a sustainable society.” Companies often think
about CSR in terms of risk, such as corporate ethics
and risk management, but CSR has the potential to leadto the creation of new revenue if one sees it not only interms of risk but also in terms of business opportunities.
I call this strategic CSR. Up until now, giving backto the community through what are called social
contribution activities was funded by profits. But fromnow on, CSR needs to be incorporated into the various
processes that generate profit.
Ouchi: So, in other words, practicing CSR through ourcore business and specifically how we address social
issues are critical. For example, leveraging Lintec’s
development capabilities to give the world productsthat are beneficial and positive for people could be one
such contribution. That is why I think we have to listen
carefully to the needs and expectations of society andstakeholders.
Unno: Strategic CSR has three elements: businesses
that address social issues, overcoming CSR risks, andstrategic social contributions. Even the risk factors canbe thought of as positives if you change your way of

Akihiko Ouchi

Managing Director
So-Tech Consulting Inc.

President and CEO
Lintec Corporation

Special Feature

Mizue Unno

thinking. I think that companies that will survive arecompanies that do not let problems remain problems but
rather find positives in them.

ÌiV½ÃÊL>Ê-ÌÀ>Ìi}Þ\ÊV>â>ÌÊof BusinessOuchi: Globalization in our company does not mean
merely moving production bases offshore. There is aphrase “Made in Market,” the basic idea of which is tobuild sales and production bases where it is a given that
there is a market in order to respond to that market’s
expectations swiftly. In that situation, securing anddeveloping human resources in that area are important
issues. I think that for the future, localization of humanresources is ideal and that it is desirable to have local
employees engage in company management with prideand passion.
Unno: Generally, people say that dealing with humanrights and working environment issues outside Japan
can be problematic. It is necessary to think about
addressing these kinds of risk while developing the
local work environment. Likewise, the ISO 26000
requests participation in and contribution to thedevelopment of local communities, and the scope of
responsibility extends even to the supply chain, suchas the suppliers of raw materials. In both cases difficult
demands are placed on companies, but these are mattersthat cannot be avoided.
Ouchi: The cooperation of suppliers is essential
to global business growth. First of all, I think it isimportant to clearly express to suppliers our way of
thinking and corporate attitude. After that we must think
together about how to handle rules that we would likefollowed and matters that require attention.

Stakeholder Dialogue

A graduate of Chiba University, founded
So-Tech Consulting Inc. in 1996 afterworking for a management consulting
company. Currently a part-time instructor at
the University of Tokyo’s Graduate Schoolof Frontier Sciences and a commissioner invarious government offices.

Ouchi: Indeed, investors from outside Japan tell usthat our PV backsheets represent a promising businessthat they expect will grow immensely in coming
years. In LIP-III, we have committed to focusing
on the environmental and energy field. These PV
backsheets make use of precision thin-film coating
technology, something Lintec excels in. In fact, thisbusiness has been growing at a tremendous pace forseveral years now. Development of a product that
other companies do not offer has really pushed ournumbers up significantly.
Unno: The environmental and energy field is anarea in which social needs will continue increasingin the future. I think that from here on technology
development will head in the direction of reducing
environmental impact.
Ouchi: In terms of reducing environmental impact,
one of our products, labels for office machines, uses
the same quality and same material as the actual officemachines to ensure that they can be recycled without
removing the label. Our window films attached tobuilding windows (insulating film) contribute to energy
savings by increasing air conditioning efficiency.
Additionally, our shift to solvent-free adhesives andrelease agents is not only good for the environment but
is a positive in terms of production efficiency.
Unno: You are already fulfilling CSR through your corebusiness. It may be a good idea to make a standard forenvironmentally friendly products and set sales ratios
as goals. Environmentally friendly products need to bethought of in terms of both risks and opportunities; they
are truly a good theme for strategic CSR. I recommendthat you focus on that as you move ahead with the new
medium-term business plan in the future.

Practicing CSR in Core Business withEnvironmentally Friendly Products/À>ÃvÀ}Ê -,ÊÌÊ"««ÀÌÕÌÞÊ>`Ê ÌÕ}ÊÌÊ/>iÊÊ>i}iÃÊL>Þ

Unno: When thinking about CSR as an opportunity
factor, it is vital to realize that the number of investors
who include CSR initiatives as an indicator incorporate valuation have increased, as typified bysocially responsible investment (SRI). While still notmainstream, whether or not a company carries out CSR
initiatives has come to affect corporate value directly.
Investors are paying close attention to these matters.

Ouchi: I think that making the most of CSR as abusiness opportunity is a task that lies ahead. I haverealized again today how important it is to infuse
passion into human resources globally, to make efficientuse of resources, to ensure thorough awareness of theenvironment among all employees, and to strengthen
our supply chain management. Going forward, we willcontinue to vigorously advance our CSR initiatives.
5-,Ê/ iiÃ]Ê/>À}iÌÃÊ>`Ê*iÀvÀ>Vi
Lintec’s value is in the benefit it provides to the world
through its corporate endeavors. We aim to go far beyond
the letter of the law, to be trusted and consistently
chosen. To achieve this, we seek to meet the demandsof society and continue to boldly take up the challengeof technical innovation. Lintec’s sustainability depends oncontributing to the sustainable development of society byworking to solve social issues through our core business.
In carrying out our CSR initiatives, we have establishedcommittees for each of our six basic CSR approaches.
We go through the cycle of setting cross-organizational
goals, taking action, checking performance, and making
improvements. This ensures our CSR initiatives make solid,
steady progress.

Basic Commitment

Corporate Ethics

Treat corporate ethics andcompliance as priority management
themes and ensure that every
employee is aware of theirimportance and practices themevery day

฀ ฀
฀
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products and improve quality
management and service basedon the key concepts of assuring
customers of reliability and fulfilling
responsibilities

Social Contribution

฀ ฀
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both the local communities where
we operate and the international
community, help solve social
challenges and carry out realistic
activities that contribute to thesustainable development of societies

Conduct management that฀
฀ ฀investors, and take action to improvethe corporate brandEnvironmental Protection6฀฀฀
environments where people canwork with security, based on theconcept of improving employee
satisfaction

Investor Relations

Safety, Disaster
Prevention, and Health

Field

Customer Satisfaction

Fiscal 2010 CSR Themes and Performance

As a materials manufacturer,
conduct company-wide activities in
฀
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฀
฀
based on the principle of reducing
environmental impact

Theme

Fiscal 2010 Targets

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self-awareness฀฀ ฀ ฀ ฀฀฀ ฀
ensuring thorough compliance

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Action Guidelines

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human-made disasters

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personal information, business secrets, etc.)
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and encourage the taking of annual paid leave

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with local communities
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and support their participation

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disease

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We are determined to conduct corporate activities with a commitment to
CSR-driven management, as declared in the new medium-term business plan.
Global expansion of this effort will require all employees in and outside Japan tounderstand and practice the spirit of CSR, and strive to meet the expectationsof the global community. In fiscal 2010, in addition to the initiatives of the CSR
committees, we actively worked on CSR education with the aim of increasingawareness of CSR. Further, in April 2011 we announced our participation in the
UN Global Compact. Going forward, we will advance our initiatives globally withreference to ISO 26000.

Hiroyuki Nishio
Director, Managing
Executive Officer

Main Activities in Fiscal 2010

Comment from Officer in Charge฀฀฀ ฀Rinri Kawaraban ethics news column andpublished an annual booklet
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Kenji Kobayashi
Corporate Ethics Officer฀฀฀In order to maintain corporate ethics, each and every
employee needs to understand corporate ethics andto practice them on a daily basis as their own. We willcontinuously disseminate and raise awareness of ethicalstandards in order to prevent problems.

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Makoto Iiumi
Customer Satisfaction Officer
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pp8–9

Practicing Sincerity

Social Report
Providing Valueto Customers

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Koji Koyama
Safety, Disaster Prevention, and Health Officer
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Koji Ichihashi
Social Contribution Officer
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Corporate
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Hitoshi AsaiIR Officer฀฀฀฀We must provide accurate information in a timely and fairmanner to shareholders and investors in order to obtain their
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Keeping
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Participatingin LocalCommunities

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Communicatingwith Stakeholders pp20–21

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฀Achieved goal with about 555 tons per year of toluene released฀฀ ฀ ฀ ฀฀฀ ฀฀฀ ฀
suppliers฀ ฀฀ ฀ ฀ ฀฀฀฀฀ ฀฀ ฀ ฀ ฀฀฀฀฀฀

Yoshiyuki Yamato
Environmental Protection Officer฀฀Aware of our responsibility as a manufacturer, we have set
numerical targets for environmentally harmful substances,emissions, and amount of waste, and will฀ ฀
keep working to reduce Lintec’s environmental impact.

Environmental
Reportpp22–32
Environmental
Protection

7

Corporate Governance
True to the ideals of its company motto, “Sincerity and Creativity,” the Lintec
Group strives to ensure that all of its corporate endeavors are thoroughly
respectable.
Below is a report about the group’s efforts and systems for putting those ideals
into practice and contributing to society.

Practicing Sincerity
For the Lintec Group, corporate ethics and compliance are themes of paramount importance in management,
just as one would expect in light of the company motto, “Sincerity and Creativity.” At the same time, they are
positioned at the foundation of CSR in the group’s efforts to strengthen its management structure.

Corporate Governance
The Lintec Group regards the basics of corporate
governance to be maximum management transparency,
awareness of corporate ethics, the practice ofthoroughgoing compliance, rapid decision-making,and efficient administration of business operations.
The Lintec Group aims to increase corporate value andmeet shareholders’ interests by continually improving its
corporate governance.

Corporate Governance Framework
On June 24, 2011, Lintec adopted an executive officer
system, separating directors who perform management
decision-making and executive officers who administerbusiness operations. In conjunction with this change,
the company set the number of directors at 10 (8 insidedirectors and 2 outside directors) and is attempting tostreamline management through revitalization of theboard of directors and the speeding-up of decision
making. The company’s two internal and two external
auditors always attend meetings of the board of directors
and management meetings and listen to the opinions
expressed. They operate with the internal Audit Office
and accounting auditors to audit the overall work of thedirectors. Through meetings of the board of auditors,
auditors share the results of their audits of operations
Corporate Governance System

General Meeting of Shareholders

Decision making
Reporting

Guidance/
promotion

CSR Management
Office฀฀฀Committee฀฀฀Committee฀฀฀Committee
฀฀Preservation Committee฀฀Committee฀฀฀Prevention, and HealthCommittee

Operational implementation

8

Board ofDirectors(directors)

President

Appointment/dismissal

Appointment/
dismissal

Statutory
Auditors’
Account/ Meeting Cooperation
operational
auditing

Management
meetings(directors andexecutive officers)

Administrative,
marketing,production andtechnical divisions
Domestic
and overseas
subsidiaries

Cooperation
Account
auditing
Internal
auditing

Audit
Office(internal
control)Internal
controlauditing

Independent Auditors

Appointment/dismissaland strengthen the checks on directors’ decision-making
and the appropriateness and effectiveness of executive
officers’ administration of business operations.

Compliance
Lintec’s corporate ethics is based on the company motto,“Sincerity and Creativity.” Each and every employee strives
to act with deep commitment to the company mottoand to practice careful self-control to completely avoid
any corporate scandals. Compliance is the foundationof every corporate endeavor. The Lintec Group complies
with relevant laws and regulations and social rules ineverything it does in and outside Japan.

Rinri Kawaraban Ethics News Column Booklet
6°Ê{Ê*ÕLÃ i`First published in June 2006, the Rinri Kawaraban ethics
news column presents ethical issues in the form ofJapanese poems in order to make the ethical standards
and code of conduct expected of employees as easy tounderstand and accessible as possible. Booklet Vol. 4,
published in January 2011, included the 100th poem
composed thus far. A highlight was the inclusion at the
beginning of employee photos with theircomments on verses that they
liked. Under the motto of,“From Now on as Well,
With Sincerity andCreativity, Put into
Verse” (the 100thpoem), the Lintec
Group will continue
to publish the
Rinri Kawaraban
ethics news column
to illustrate model
employee behavior andVol. 1-4 of the Rinri Kawaraban
ethics news column booklet.
sincerity.

Revised Edition of Compliance Guidelines*ÕLÃ i`
In April 2011, the Lintec Group published a revised editionof its Compliance Guidelines. In the revised edition theguidelines on accounting procedures and antimonopoly
law and the content of the Q&A section were partiallychanged and the layout was made clearer.

Risk Management
The Lintec Group strives to prevent problems byidentifying all possible risks associated with company
management and working at making improvements
throughout the group according to the degree of urgency
and importance. In April 2009, a Risk Assessment
Committee, consisting of the general managers ofeach division, was established with the objectiveof strengthening the risk management system. The
committee meets once a quarter and reports the outcomeof its meetings to the board of directors.

Helpline
Lintec has a helpline (internal reporting system) for
employees to obtain consultations on legal violations
and other worries in the workplace. In April 2008, Lintec
added a third-party corporate lawyer to the helpline
system, which made possible prompt consultations andinvestigations on matters that would otherwise be difficult
to consult on within the company. Moreover, establishinga fair and neutral consultation contact based on the
Whistleblower Protection Act made it possible to quickly
identify and solve problems and to reduce risks.

Helpline Structure

Consulter/Whistleblower
2-

Development of a Business Continuity Plan
(BCP)
Lintec is developing BCPs*1 for each business division
to prepare for potential disasters and accidents. The
Great East Japan Earthquake of March 11, 2011 caused
no major damage that had a direct effect on Lintec’s
business. However, there was some impact on the
procurement of raw materials, necessitating urgent
countermeasures involving the supply chain. The
earthquake raised the crisis awareness in all divisions,which are striving to develop BCPs based on earthquake
experience.

vÀ>ÌÊ-iVÕÀÌÞÊ>>}iiÌ
Beginning in fiscal 2009, all business sites in the Lintec
Group in Japan have been conducting internal
self-checks based on a checklist for internal audits ofrules for the control of information security, and the
Corporate Ethics Committee started internal audits of
the head office, Itabashi Office, and Osaka Branch. In
fiscal 2010, the internal audit was completed for all
departments in the head office. The overall evaluation
found inadequate preparation of detailed regulations andprocedure manuals on information security as a point for
improvement. As the content differs in each department,

Practicing Sincerity

Compliance Guidelines

the Corporate Ethics Committee prepared detailed
regulations on information security and an internal audit
checklist as a model. Each department has now prepareddetailed regulations and established a self-audit system.

Corporate
Governance

The guidelines help all employees
in the Lintec Group deepen theirunderstanding and adhere tolegal and ethical standards in their
behavior. Each and every employee
tries to always carry a copy anduse it to navigate through issues ofcompliance and social activities.

Investigation teamNotificationof results

General Affairs& Personnel
DivisionInternal
departments,
etc.

Corporate
lawyer2-

Investigation and analysis
Notes: 1. -Used when the consulter/whistleblower does not want the
information communicated within the company.
2Used when the information should be communicated within
the company.
2. “Internal departments, etc.” includes the president and CEO,standing auditors, and the CSR Management Office in addition to
relevant departments.

Voice 1- >À}ÊvÀ>ÌÊÊ>Ê iÀ}iVÞ
Following the occurrence of the Great East Japan Earthquake, the head office sent out asafety confirmation request via an internal network to 26 business sites, including branch
offices, plants, and group companies. Within an hour most sites had returned a message
that there were no problems. We also set up a new emergency contact bulletin board on
the company intranet to share information concerning the earthquake. This is run on aserver at a location outside the area where the head office is so that it can be used evenwhen the head office’s area is in blackout.

*1 Business Continuity Plan (BCP): A plan developed in advance to enable
the minimization of damage and the continuation or early resumption of

Yuichi Fukasaku
Administration Divisionbusiness in the event that a company encounters an emergency situationsuch as an accident or disaster.

9Social Report
The Lintec Group’s business is supported by numerous stakeholders suchas customers, suppliers, employees, shareholders and investors, and local
communities.
Below is a report on initiatives aimed at the sustainable development ofsociety and the company.

Providing Value to Customers
The Lintec Group strives to provide a stable supply of products, to ensure thorough quality management, and to
improve its services in order to meet the expectations and secure the trust of customers.

Quality Policy
Based on the Lintec Quality Policy,*1 the Lintec Groupendeavors to ensure thorough quality management,always keeping the customer’s perspective in mind andworking to fulfill the slogan, “Lintec Products makeeverybody happy!”
The group works at quality management, design
reviews,*2 thorough upstream management of resources,
and the revision and expansion of its quality management
system to meet customers’ increased expectations.
Through these efforts the group aims to make a concerted
push to improve product quality and services.

Quality Assurance System
Lintec has obtained ISO 9001*3 certification for 11
business sites in Japan, including group companies, and 9group companies outside Japan. The company continues
to work on product quality management and quality
improvement. Going forward, the group will build aglobal system that goes beyond national frameworks.

and safety, such as the procurement of raw materials in
adherence to environmental protection standards and incompliance with laws and regulations, the regular holdingof quality meetings with suppliers, and the developmentof products through the combined efforts of the design
and manufacturing divisions. Additionally, as in fiscal
2010, the company provided internal education throughe-learning (see page 16) as an educational and awarenessbuilding measure in its customer satisfaction initiatives.

Handling Quality Accidents
Lintec works actively at quality improvement initiatives
based on ISO 9001. In addition, it strengthens its
system of checks from the development stage throughmanufacturing processes to outgoing inspection by
conducting design reviews and utilizing its own audit
management system.
Ratio of Quality Accidents to the Number in Fiscal 2003
(Fiscal 2003 = 100%)
(%)

100

100

80
60

«ÀÛ}Ê ÕÃÌiÀÊ->ÌÃv>VÌ
Lintec communicates actively with customers and aspires
to provide products that satisfy customers’ diverse needs.
Specifically, the company implements extensive customer
satisfaction initiatives based on quality, the environment,

40

36

32

30

27

2007

2008

2009

2010

20
0

2003

(FY)

Voice 2/ }ÊvÀÊÌ iÊ ÕÃÌiÀ½ÃÊ*iÀÃ«iVÌÛi

Yutaka Miura
Business Administration Division

At Lintec, we deeply value communication with customers. We believe it is important toaccurately ascertain customers’ needs, share information internally, and take action withthe customer’s perspective in mind. We are working to disseminate to all departments a
commitment to “thinking from the customer’s perspective” in order to provide satisfying
craftsmanship and reliable services. We will continue to roll out new customer satisfaction
initiatives designed to improve customer satisfaction.

*1 Lintec Quality Policy (excerpt): Starting from “manufacturing” based on“quality,” “consideration for the environment” and “safety,” we endeavor
to develop, manufacture and sell products through business activities thatgain and maintain the trust of all stakeholders.

10View the full Lintec Quality Policy online at:
http://www.lintec-global.com/about/csr/quality.html

Social Report

Cooperating with Suppliers
The Lintec Group strives to engage in fair, highly transparent transactions, always pursuing seamless cooperationand mutual benefit with suppliers.

The Lintec Group’s basic policy is to conduct fair andtransparent procurement with all suppliers. Whenselecting or deciding to continue transactions with
suppliers, the group appropriately evaluates quality,
cost, delivery time, supply stability, technical capabilities,
service, and environmental protection efforts, and strives
to form, maintain, and improve sound partnerships.

CSR Procurement
In its procurement, Lintec makes it a policy to practicethorough CSR from all points of view, working together
with suppliers on issues such as respect of humanrights, occupational safety and health, ensuring quality
and safety, information security, and corporate ethics.
Lintec explains this policy to suppliers to obtain their fullunderstanding.

Green Procurement
In recent years, environmental regulations pertaining to
products (e.g. RoHS directive, PFOS regulation, REACH
regulation, regulations on organotin compounds*4) havebeen becoming stronger worldwide, lead by regulationsin the EU. In light of this trend, Lintec established the
Lintec Procurement Policy*5 and is thoroughly managing
chemical substances in raw materials and subsidiarymaterials. Moreover, since the understanding andcooperation of suppliers is necessary in this regard,
Lintec is striving to strengthen relationships of trust andstructures for cooperation with suppliers. In fiscal 2010,
six companies signed the Lintec Environmental andQuality Agreement, bringing the total to 43 companies.
Going forward, Lintec will continue taking action aimed atcooperation with many suppliers.

Briefing Held on Business Continuity Plan (BCP)
The cooperation of suppliers is critical for business
continuity during an emergency. That is why it is importantfor suppliers to understand Lintec’s way of thinking
regarding its BCP.
In February 2011, Lintec held a briefing on its BCP
for suppliers for products related to the Advanced
Materials Operations. The company confirmed the statusof suppliers’ initiatives and worked to improve mutual
understanding.

*2 Design review: An opportunity to check and evaluate development
work outcomes (e.g. specification sheets and design documents) byseveral people with different standpoints, such as personnel from the
manufacturing and sales divisions. The design review is defined in theJapan Industrial Standards (JIS) and the International Organization forStandardization (ISO) 9000 series.

Providing Value to Customers/Cooperating With Suppliers

>ÀÊ/À>Ã>VÌÃ

Supplier Questionnaire
In October 2010, Lintec conducted a questionnaire surveyof its suppliers to ascertain the status of their information
security systems. Replies were received from 127 of 140
suppliers (reply rate: about 91%).
Example Items from the Supplier Information Security
Questionnaire Survey

Management of
the exchangeof confidential
information

Physicalmanagement
Management ofcarrying items inand out and of
disposalHave you signed non-disclosureagreements including the following
provisions with suppliers andcontractors?
UÊ v`iÌ>ÌÞÊL}>Ì
UÊ-V«iÊvÊvÀ>ÌÊÃÕLiVÌÊÌÊ
non-disclosureUÊ*iÀ`ÊvÊVv`iÌ>ÌÞÊL}>ÌUÊ,iÃÌÀVÌÃÊÊ«ÕÀ«ÃiÊvÊÕÃi
Existence of restrictions on access togrounds, building, and rooms
Existence of disposal procedures for
documents containing importantconfidential information

Supplier Quality and Environmental Audits
Lintec strives to improve product quality and strengthen
the management of chemical substances to ensure
customers can use Lintec’s products with peace of mind.
Furthermore, to strengthen systems including suppliers,
Lintec systematically conducts quality and environmental
audits and works at establishing systems that enable
cooperation. In fiscal 2010, the company audited 25
companies with the cooperation of its main suppliers.
Lintec will continue striving to further strengthen
these systems.

7 ÃÌiLÜiÀÊ Ì>VÌÊ ÃÌ>LÃ i`Ê
for Suppliers
In December 2009, Lintec established a Supplier Helpline(contact point for whistleblowers from suppliers). This
helpline makes it possible for suppliers to inform Lintec if
its employees’ behavior does not meet legal and ethicalstandards. Lintec reminded suppliers about the availabilityof the helpline when conducting the supplier information
security questionnaire survey in October 2010. Lintec
expects all employee behavior to adhere to its code of
conduct and legal and ethical standards.

*3 ISO 9001: The international standard for quality management systems.
*4 Environmental regulations pertaining to products: See bottom of page 29.
*5 Lintec’s policies pertaining to procurement: The Lintec Procurement Policy isposted on the company’s website.
http://www.lintec-global.com/about/csr/procurement.html

11Social Report
Keep Employees Safe (Safety and Disaster Prevention)

Keep Employees Safe (Safety and Disaster Prevention)
The Lintec Group carries out a variety of initiatives, including raising safety awareness, with the aim of creating
work environments where the group’s employees can work in safety and with peace of mind.

Annual Safety and Health Plan

Occupational Safety
Occupational Safety and Health Policy
In October 2010, the Lintec Group in Japan establishedthe Lintec Occupational Safety and Health Policy. Since
then it has been carrying out initiatives based on an
occupational safety and health management system(OSHMS).*1
The OSHMS requires the use of the PDCA cycle.
The group has established different plans for different
situations: matters to be implemented group-wide areput in the Plan for Mutual Safety Inspections prepared by
the Group-wide Safety Secretariat, the prevention of fires
caused by solvents and other means is covered by the Plan
for Fire Prevention Patrols, and plants follow an Annual
Safety and Health Plan.
A Safety Consideration Committee, consisting ofmembers engaged in safety initiatives in plants andmembers of the Group-wide Safety Secretariat, has been
established to consider group-wide safety rules.
Lintec Occupational Safety and Health Policy
All Lintec Group employees shall devote themselves tothe company motto, “Sincerity and Creativity,” and tothe management philosophy, shall attempt to prevent
occupational accidents, and shall work appropriately
and actively to create a safe and comfortable workplaceenvironment and improve safety and health.
£° We shall appropriately promote in business operations theoccupational safety and health of everyone who works for
the Lintec Group.
Ó° We shall, with the cooperation of people who work in
the Lintec Group, continuously promote the prevention ofoccupational accidents and disease, and the maintenanceand enhancement of health.
Î° We shall conduct risk assessment in production
sites, establish occupational safety goals, and make
improvements through plans and actions for goal
achievement and routine reviews.
{° We shall comply with laws and ordinances relating to
occupational safety and health, agreements to which Lintec
has subscribed, and guidance received.
x° We shall attempt to increase the importance and awarenessof ensuring safety and health by providing education andawareness building programs pertaining to occupationalsafety and health to people who work in the Lintec Group.
Established October 1, 2010

Overview of the Lintec Occupational Safety and Health Manual

Plan (planning)
Laws and ordinances / safety and health plan, safety andhealth goals, etc.
Do (implementation and operation)
Organization, roles, responsibilities, and authority /capacity, education and training, and self-awareness /communication, etc.
Check (inspections, patrols, improvements)
Monitoring and measurement / internal audits, etc.
VÌÊ­ÀiÛiÜÃÊLÞÊ>>}iiÌ®
*1 Occupational safety and health management system (OSHMS): A company’s
voluntary independent management system for increasing the level ofsafety and health at a business site.

12

The Lintec Group in Japan strives to carry out safety andhealth activities reliably, based on a comprehensive plan
covering the year’s initiatives. The annual safety andhealth plan includes matters such as a patrol program,safety education, a training program, an inspection andmeasurement schedule, health checkups, internal audits,and management reviews. A progress report is made at
the monthly meeting of the Safety and Health Committee.
In fiscal 2010, the group conducted mutual safety audits
and fire prevention patrols based on the Lintec safety andhealth management system.
What is more, the Lintec Group uses a safety mailinglist to share information, including the minutes of the
Safety and Health Committee and disaster bulletins.

Safety and Health Committees & HealthCommittees
Japan’s Industrial Safety and Health Act requires thatbusiness owners employing 50 or more full-time workers
establish a safety committee, health committee, or asafety and health committee. Business sites belonging
to the Lintec Group in Japan that are subject to the Act
hold monthly committee meetings to discuss safety
and health in the workplace. At production plants asafety and health committee confirms that safety isgiven priority in all situations and discusses issues suchas the inspection of equipment, hazard control, and the
5S methodology (sorting, setting in order, systematiccleaning, standardizing, and sustaining discipline). At thehead office andbusiness sites witha sales department,a health committee
discusses issues
pertaining to health,safe driving, andwork site hygiene.
Health committee meeting at the Iidabashi OfficeVV`iÌÃÊ,iÃÕÌ}ÊÊLÃiViÊvÀÊ7À
In fiscal 2010 there were five occupational accidents
resulting in absence from work (including at partnercompanies), three of which were accidents involving
rotators.*2 The safety and health committees discussed
countermeasures and efforts were made to prevent a
recurrence.

ÌÕÕÃÊVV`iÌÀiiÊÕÀÃI3
The Lintec Group in Japan has established a system
for recognizing plants with no occupational accidents,
including accidents not resulting in absence from work.
Awards are given for the achievement of 500,000,
750,000, 1 million, and 1.25 million accident-free hours.
*2 Rotator accidents: Accidents in which a body part is pulled into a rotating
part of a production machine.

Date achieved

1.0 million

May 2010

1.25 million

September 2010

0.5 million

May 2010

0.75 million

August 2010

Shingu Plant

0.5 million

May 2010

Tokyo Lintec Kako, Inc.

0.75 million

October 2010

Business site

Agatsuma Plant

Mishima Plant

The Lintec Group conducts top management patrols inwhich the president inspects plants and research centers
in Japan and offshore production bases in Southeast Asia,
China, and North America. With a view toward mutual
audits, the president is accompanied by safety managers
from other plants during patrols in Japan, with everyone
exchanging opinionsfrom their uniqueperspectives. The
president’s on-site
inspections help
raise awareness ofworkplace safety
and environmental
friendliness.

Keep Employees Safe (Safety and Disaster Prevention)

Continuous
accident-free hours

Social Report/«Ê>>}iiÌÊ*>ÌÀÃÊ>ÌÊ*À`ÕVÌÊ >ÃiÃContinuous Accident-Free Hours Achievements

The president inspecting the Tatsuno Plant

Crisis Management during a Disaster1.25 million accident-free hours achieved(Agatsuma Plant)

Regular Safety Conference Held (Kumagaya Plant)
The Kumagaya Plant holds a regular safety conference for
installers on long-term contracts in addition to providing
new visitors education when outside installers enter theplant. The regular safety conference is attended by about
100 people from in and outside the company each time.
At the conference wide-ranging two-way discussions on
all manner of safety issues are held, including the checkingof and thoroughadherence to safe
working rules, thesharing of accident
examples fromother companies,
and proposals
and improvement
requests frominstallers.
Regular Safety Conference

Plants and other business sites belonging to the Lintec
Group in Japan conduct emergency drills and maintainstores of emergency food, water and other supplies
in preparation for various kinds of disasters. During
the Great East Japan Earthquake a number of issues
became apparent, such as the securing of means ofcommunication, the decision and line of command insending employees home, and measures against cold.
Prompted by this disaster, the group will review its crisis
management standards and enhance its system of crisis
management for disasters.

Emergency Drills
Every year plants of the Lintec Group in Japan conduct
emergency and firefighting drills. Whenever possible, thecooperation of the local fire department is requested andthe drills conducted under the guidance of professionals.
Going forward, the group will continue to implement
initiatives that makepeople aware of
the fact that each
person’s safety leads
to overall safety at
the company, which
in turn enhances
the safety of thecommunity.
Joint firefighting drill conducted at the Shingu
Plant with the Tatsuno City Fire Department

Voice 3

ÃÌ>LÃ iÌÊvÊ>Ê->viÌÞÊ Ã`iÀ>ÌÊ ÌÌii

Members of the Safety Consideration Committee

In April 2010, a Safety Consideration Committee consisting of members
appointed from plants and personnel from the Group-wide Safety Secretariat
was established to deliberate group-wide rules for occupational safety and healthin the Lintec Group in Japan. Lintec believes that the invigoration of initiatives
through the sharing of information, rather than conventional efforts made byeach business site, is needed to eliminate occupational accidents. The Safety
Consideration Committee will promote safer production operations by clarifying
and standardizing the indication of rules for the elimination of rotator accidents
and the prevention of fires.

*3 Continuous accident-free hours: Total number of working-hours withno occupational accidents (accidents not resulting in absence fromwork, accidents resulting in absence from work, and accidents duringcommutation) involving Lintec employees or partner company personnel
working full time at a business site.

13

Social ReportCreating Comfortable Workplaces: Health Management, Employment, and Human Rights

Ài>Ì}Ê vÀÌ>LiÊ7À«>ViÃ\Êi>Ì Ê>>}iiÌ]Ê
Employment, and Human Rights
The Lintec Group supports its employees in maintaining their physical and mental health so that every person
can live and work with energy and inspiration.
Mental Health Lectures

Health Management
Mental Health Measures
Ten companies in the Lintec Group in Japan, including
affiliates, introduced a precautionary EAP*1 systemin fiscal 2008. In fiscal 2010, mental health checkups
were offered once again, and 92% of employees took
advantage of this benefit.
This program enables employees to consult with aprofessional about worries such as physical health, mental
health, childcare, nursing care, legal issues, and family
finances without this information becoming known to thecompany or any third party. Since January 2011, Overseas
Health Support has also been made available to Japaneseemployees and their families posted outside Japan,
enabling them to consult in Japanese from their current
location with a specialist physician.
Precautionary EAP System Overview(Web/written)

Consultation
Health
Acceptance Center consultation

ReferralReportMental consultation
network

i>ÃÕÀiÃÊ>}>ÃÌÊ iÜÊ-ÌÀ>ÃÊvÊvÕiâ>
In light of the outbreaks of new strains of influenza inJapan since 2009, Lintec has established clear standards
about when employees should or should not come towork. In November 2010, the Lintec Group in Japanreposted the standards on the company intranet to help
employees determine whether they should come to work.

Stress check

Users

Annual mental health checkups empower people totake care of their own mental health by monitoring theirown stress level.
In fiscal 2010,
based on overall
checkup results,
the Agatsuma,
Kumagaya, andChiba plants held
mental healthlectures by outside
instructors for theirMental health lecture at the Agatsuma Plant
employees.

Cooperating
counseling provider

Measures against Working Long Hours
Lintec strives to make appropriate personnel appointments
and to ensure equal sharing of workload in order toprevent the harmful effects of working too many hours.
The company has introduced systems for carrying out work
efficiently and systematically, such as no-overtime-days ineach workplace and flex-time programs. Supervisors also
manage overtime hours carefully to help employees avoid
excessive strain on the body and mind. The company has
also adopted an attendance system that enables detailed
labor management.

/ii« iÊVÕÃi}gCounseling by psychological counselor
gReferring to provider for three-way interview with supervising
doctor«iÀÃÊVÕÃi}gDirectly managed consultation centers (Tokyo, Osaka, Nagoya)gCooperating providers (150 locations in Japan)

7iLL>Ãi`ÊVÕÃi}gIndividual counseling over the Internet

iiÀ>ÊvÀ>ÌÊÜiLÃÌi
gBasic mental health information
gMental health self-checks*1 Precautionary EAP (Employee Assistance Program): An employee programthat aims to improve productivity through the creation of comfortable

14

Measures against Harassment
Lintec has established rules against and is making efforts
to prevent sexual harassment. Sexual harassment is asocially impermissible act and an affront to individual
dignity. It also inhibits employees from performing totheir full potential, disrupts order in the workplace,and obstructs productivity. By providing harassment
study sessions at each business site and taking othermeasures, the company is sending the message that
Lintec workplaces will respect all individuals based on therecognition that “every colleague in the workplace is anequal partner.”

workplaces by focusing on precautions for healthy employees in addition toaddressing the concerns of employees who already have a health issue.

«ÞiÌÊvÊ*iÀÃÃÊÜÌ Ê Ã>LÌiÃ

In addition to its childbirth leave and childcare leave
programs, Lintec helps parents continue working whileraising children through programs such as shorter working
hours and flex time. The utilization rate of each program
continues to rise each year; only two people left thecompany due to childbirth in the five years since fiscal 2006.
Going forward, Lintec will continue offering programs
and systems that enable employees to build both happy
families and satisfying careers.
Users of Parenting Programs(Persons)

Program

FY2006

FY2007

FY2008FY2009FY2010Childbirth leave

4

9

17

15

16

Employment of Older Persons

Childcare leave

8

5

15

19

22

Lintec has provided continued employment of older
persons since 2001, before the Revised Act on
Employment Security for Older Persons*2 came into
effect. In fiscal 2010, the company re-hired 14 of 42
retirees. These professionals are working vigorously,
making use of the skills and experience they havedeveloped over many years in a familiar workplace, while
also helping to develop younger employees.

Shorter hours /flex time

4

1

3

6

8

LÊ,iÌÕÀÊ*À}À>
In April 2010, Lintec introduced a job return program.
Under this program, the company re-hires employees
who had retired for personal reasons such as marriage,
pregnancy, childbirth, childcare, nursing care of a family
member, or other family circumstance such as the transfer
of one’s spouse. This enables the company to regainskilled employees who can get right to work.

7ÀviÊ >>Vi
>ÞÊ >ÀiÊi>Ûi]Ê>ÞÊ >ÀiÊ/iÊ"vv]Ê>`ÊVVÕÕ>Ìi`Ê/iÊ"vvÊ*À}À>Ã
Lintec offers a family care leave program (up to a totalof 93 days) and a family care time off program (five days
per year) for employees to care for family members who
require nursing care. The company also offers a programfor accumulating up to 50 days of paid time off that canbe used either for long-term treatment of an employee’s
own illness or injury or for caring for a family member.
Utilization of these programs in fiscal 2010 was: 0 persons
for family care leave, 1 person for family care time off,and 47 persons for accumulated time off.

`LÀÌ Êi>Ûi]Ê `V>ÀiÊi>Ûi]Ê>`ÊÕÀÃ}Ê >ÀiÊ/iÊ"vvÊ*À}À>Ã`Ê

Creating Comfortable Workplaces: Health Management, Employment, and Human Rights

Lintec strives to provide employment to persons withdisabilities. The full-year employment rate at Lintec
for persons with disabilities in fiscal 2009 was 1.58%,
which was below the legally mandated rate of 1.8%.
To improve this, the company encouraged each businesssite to hire persons with disabilities, resulting in an
improvement to 1.73% in fiscal 2010. In fiscal 2011,
Lintec will continue encouraging the company-wide
employment of persons with disabilities and will work
to create comfortable workplaces and exceed the legally
mandated employment rate.

Social Report

Parenting Support

Respecting Diversity

Volunteer Support Program
Lintec offers a paid social contribution time off program(three days per year). This program allows employees
to participate in relief efforts during a disaster, local
firefighting operations, kindergarten, elementary, andjunior high school activities, or town revitalization efforts.
The program was used by 24 persons for a total of 42 days.

>>}iiÌÊ>LÀÊ,i>ÌÃ
At Lintec, the labor union is called Lintec Forest. Labormanagement consultations are conducted with anattitude of respecting each other’s standpoint and acommitment to resolving issues through discussion. In
addition, the company provides opportunities for thecreative exchange of opinions to help drive businessdevelopment, such as the semiannual council help for top
management and labor union leaders.
Status of the Lintec Forest Labor Union
FY

Labor union members

Averageage

Average service
years

2007

2,062

36.8

15 years 9 months

2008

2,124

36.7

15 years 6 months

2009

2,151

36.7

15 years 6 months

2010

2,146

37.0

15 years 6 months

Note: As of the end of each fiscal year

Lintec offers a childbirth leave program up to a total of 14
weeks and a childcare program that can be taken for theperiod of time requested by the employee up through the
day the child turns one year old (one and a half years old
in some circumstances). It also offers child nursing caretime off for employees whose children who have not yet
started elementary school (six days per year). Utilizationof these programs in fiscal 2010 was: 16 persons forchildbirth leave, 22 persons for childcare leave, and 7
persons for child nursing care time off.
*2 Revised Act on Employment Security for Older Persons: Revised in June
2004, this Japanese law requires employers who have set the mandatory
retirement age at younger than 65 years of age to take measures to ensure

employment security until 65, such as by raising the mandatory retirementage, providing a continued employment program, or abolishing the
mandatory retirement age.

15

Social Report
Human Resources Development

Human Resources Development
The Lintec Group prepares educational programs tailored to employees’ work assignments and abilities andstrives to develop competent human resources with a global mindset. The group also provides training toincrease employee awareness in fields such as the environment and information security, thereby empowering
them to play a part in social progress.

«>ÞÜ`iÊ,>L>Ãi`Ê/À>}Ê*À}À>Ã-iv`iÛi«iÌÊ ÀÀiÃ«`iViÊ/À>}Ê ÕÀÃiÃ

Lintec has adopted company-wide rank-based training
programs for human resources development. Focusing on
the development of the next generation of leaders and on
supporting employees’ career development, these training
programs help boost employees’ skills and support each
person’s self-motivated career planning.
Fiscal 2010 Schedule of Rank-based Training Programs

Twice a year, Lintec offers self-development correspondence
training courses to interested employees. The company
subsidizes a part of the cost for those who complete acourse within a given timeframe. There is a wide variety ofcourse content available, such as management, businessskills, qualifications acquisition, computer skills, foreign
languages, and liberal arts. The company will continue
offering these courses to encourage employees to keep
learning and growing.

April

Self-development Correspondence Training Course Participants

May
June

FY

Number of participantsCompletion rate (%)

July

2008

465

68

August

2009

413

60

2010

357

58

September
OctoberNovember`Û`Õ>Ê `ÕV>ÌÊ*À}À>Ã

DecemberJanuary

i>À}February
MarchmAbout Programs
ProgramNext-generation leader
development training

FormatRecipients

Group training

Selection of managers

New managers training

Group training฀

New managers training

Correspondence
course฀

New assistant managers training

Group training฀฀

Correspondence
courseCorrespondence
course฀฀฀
3rd class

Second-year follow-up training

Group training

Second-year employees

New hires training

Group training฀Group training

Third- and fourth-year
employees

Grade 4 employee training
Grade 3 employee training

Young sales person training(biannually)

฀ ฀
฀ ฀

Lintec’s six CSR committees provide theme-basede-learning opportunities for all employees. The Corporate
Ethics Committee conducted its second course on
governance-based company management (December
2010, utilization rate: 73%) and the Customer
Satisfaction Committee conducted its second course
on utilization of statistical techniques (February 2011,
utilization rate: 68%) and design reviews (April 2011,
utilization rate: 64%). The company also conducted
a questionnaire survey on the CSR Report 2010 from
November 2010 to January 2011 (response rate: 75%).
E-learning courses can be taken at any time after thestart date, enabling employees to learn as their situations
allow. When an employee does not have access to acomputer, paper-based learning is also provided.

Voice 4

Delivering Lintec Eco News
Since December 2009 we have been posting Lintec Eco News on the company intranet.
In the “Environmental Activity News” column we report on revisions to environmental
laws and ordinances and explain environmental terms. In the “Chemical SubstanceNews” column, we introduce information needed for chemical substances management
in and outside Japan. We have posted a total of 49 issues through May 2011. We havealso posted the degree of accomplishment of ISO 14001 objectives and targets. Moving
forward, we will work to make the information even more clear and helpful.

16

Asami Masuda
Quality Assurance &Environmental Protection
Division

Environmental Education
Study Sessions on the Environment
The Research Center provides specialized education on
the environment to young researchers. In fiscal 2010, it
took up Japan’s Chemical Substances Control Act*1 as
one theme.
For self-awareness education about ISO 14001,*2
the head office changed from group training sessions tosending out documents and questions via e-mail so that
more employees could participate.
Record of Fiscal 2010 Study Sessions on the Environment
Date

Study session at the Tatsuno Plant

2010

mHarassment
Business site

Sessions

Participants

Iidabashi Office

10

289

Osaka Branch

382

Research Center

3232

Ina Technology Center

2

107

mOverall CSR, Information Security
Business site

Sessions

Participants

Iidabashi Office9295

Osaka Branch

3763

Research Center

2

228

mOverall CSR, Information Security, Harassment
Business site

Participants

Head Office

6

207

Nagoya Branch

2

31

Sapporo Branch

10

Sendai Branch

11

Shizuoka Branch

7

Hiroshima Branch

Viavideoconference

4
7

Shikoku Branch

10

Fukuoka Branch

19

Kumamoto OfficeContent฀Center฀฀฀
Substances Control Act

Participants฀Self-awareness education on
฀

35
153

ÛÀiÌ>Êi>À}ÊÊÌ iÊÌÀ>iÌ
The Lintec Group in Japan is attempting to raise
employees’ environmental awareness. In fiscal 2010,
employees learned about Lintec’s environmental
management system, environmental laws and ordinances,and chemical substances management.
In the future the company will offer education on
the protection of biodiversity, which is a new part of its
ISO 14001 program, as well as on chemical substancesmanagement and energy conservation. Lintec is determined
to convey the importance of environmental protection.

/iV }ÞÊ>>ÀÌÞÊ7ÀÃ «Ã

Sessions

Hokuriku Branch

Sites
฀

Record of Study Sessions on Harassment, Overall CSR,
and Information Security

Human Resources Development

The Lintec Group in Japan, including affiliates, conducts
study sessions on overall CSR, harassment, andinformation security.
Since July 2010, a total of 507 employees haveparticipated in the sessions via videoconference at the
Komatsushima, Mishima, and Tatsuno plants, the Sapporo
and Sendai branches
and other locations.
In all of fiscal 2010,
a total of more than
2,100 employees
participated in the
study sessions.

Social Report

CSR Study Sessions

5

Agatsuma Plant

2

105

Kumagaya Plant

2

116

Chiba Plant

2

56

Tatsuno Plant, Niihama Plant

178

Shingu Plant

1

66

Komatsushima Plant

1

33

Mishima Plant

1

38

Doi Plant1

14Tokyo Lintec Kako, Inc.

2

32

Lintec Customer Service, Inc.

2

23

Lintec Commerce, Inc.

2

24

*1 Chemical Substances Control Act: Abbreviation for the Act on the
Evaluation of Chemical Substances and Regulation of Their Manufacture,
Etc. A law that mandates the investigation of harmful effects to humanhealth before newly manufacturing or importing chemical substances and

The Research Center holds Technology Familiarity
Workshops to help employees, including those in the
production and sales divisions, become more familiar withvarious technologies. The 61st workshop, held in October
2010, included over 60 participants from the production
and sales divisions, for about 250 employees all told.
Eleven presentations were given on the topic of“Current and FutureCore Technologies,”
and lively exchangesof opinions were
had across site anddivisional boundaries.

An opportunity for cross-divisional sharing
of informationthat regulates the manufacture, import, and use of chemical substancesthat could harm human health through the environment.
*2 ISO 14001: The international standard for environmental management systems.

17Social Report
Participating in Local Communities

Participating in Local Communities
Recognizing its responsibilities as a member of society, the Lintec Group engages in social contribution initiatives
in areas such as the environment, welfare, and education. The group participates in community actions that help
ensure it operates in harmony with local communities.

-V>Ê ÌÀLÕÌÊÌ>ÌÛiÃ
Beautification Projects and Cleanups
The Lintec Group routinely carries out neighborhood
beautification projects and cleanups.
The Mishima Plant planted azaleas in Mishima Park as
a beautification project. The Kumagaya Plant participatesin an association that focuses on the blessings of living
near the Arakawa River and in Kumagaya, and theKomatsushima Plant participates in “Refresh Setouchi”
cleanup activities. Additionally, all plants carry out
continuing cleanups along public roads.
Going forward, the Lintec Group will continue toactively participate in environmental beautification
projects and community cleanups.

Blood Donations
The Lintec Group in Japan conducts blood donations
at all its business sites nationwide in cooperation with
the Japanese Red Cross Society. As a social contribution
activity that can be performed right at the worksite,
blood donation has
been embraced by
employees, many ofwhom give blood
every single time.
This program will be
continued.

Donating blood at the Osaka Branch

Seminar Held to Address Local Organized CrimeÊÌ>L>Ã 
Lintec serves as the presiding company on the Itabashi
Coordinating Committee Against Local Organized Crime.
Together with the Itabashi Police Station’s Organized
Crime Division, the committee held a seminar to address
issues related to local organized criminal groups at the
Itabashi Police Station in October 2010.
Over 80 people attended the seminar, including
members of the committee and members of otherorganizations working against crime, such as Itabashi
Ward public service
companies. Lintec
plans to continue
participating inthese efforts,
including the street
campaigns that thecommittee holds
every year.

Kumagaya Plant employees engaged in the community

Komatsushima Plant employees at the “Refresh
Setouchi” cleanup

At the seminar-ÕÃ>Ê/Õ«ÊiÃÌÛ>Ê­-ÕÃ>]Ê

L>Ê*ÀiviVÌÕÀi®

The Lintec Chiba Plant and its Forest Chiba Branch
participate as group owners in the annual Sousa Tulip
Festival sponsored by Sousa City. In November 2010, theyplanted 400 tulip bulbs.
In the Sousa Tulip Festival, individual or group owners
invest in and plant the tulip bulbs. In April 2011, the tulips
bloomed beautifully with large flowers.

I1Ê/À>}Ê-iÃÃ

The Lintec Group in Japan lets communities know that its
business sites are equipped with AEDs. It also conducts
AED preparedness training sessions in cooperation withother companies and firefighters from the community.
From here on,
the group willcontinue routinely
providing training
so that AEDs can be
operated smoothly
if the need arises.

AED training workshop at the Chiba Plant

Field of tulips in full bloom

18Since fiscal 2006, Lintec has invited persons withdisabilities living in Tokyo’s Itabashi Ward, along with theirhelpers, to a regular-season professional baseball game atTokyo Dome as part of its social contribution initiatives.
In fiscal 2010, the fifth year, Lintec invited 101 people
to the game. On the day of the game, Itabashi Ward
officials, community volunteers, and 88 Lintec employees
participated as volunteers, helping the invited guests andcleaning up after the game.

Once a month at the Lintec Head Office and once aweek at Tokyo Lintec Kako, Inc., persons with intellectual
challenges from “Rainbow Matsubara,”*3 a vocational
aid center for persons with intellectual challenges in the
Warabi City Social
Welfare Center,set up stalls to sell
fresh baked breadand pastries. The
first sale at thehead office began
in September 2009,
and 200–300 items
are sold each time.
Selling fresh baked bread (Lintec Head Office)Participants with the team mascot

Participating in Local CommunitiesÀiÃ Ê Ài>`Ê-`ÊLÞÊ*iÀÃÃÊÜÌ ÊÌiiVÌÕ>Ê
Challenges

Social ReportÛÌ}Ê*iÀÃÃÊÜÌ Ê Ã>LÌiÃÊÌÊ>Ê*ÀviÃÃ>Ê >ÃiL>Ê>i-Õ««ÀÌÊvÀÊÀi>ÃÊvviVÌi`ÊLÞÊÌ iÊÀi>ÌÊ >ÃÌÊJapan Earthquake
The Lintec Group sent financial assistance donated by thecompany and its employees through the Japanese Red
Cross Society, and also donated 300,000 masks to the
Ishinomaki Red Cross Hospital to support people affected by
the disaster and to help recovery of the devastated areas.
The Lintec Group hopes for the quickest possible
recovery of the afflicted areas.

Lintec people give a warm welcome*ÀiÃÃÕÀiÃiÃÌÛiÊiÃÊ*ÀÛ`i`ÊÌÊvvVÌi`ÊÀi>Ã*ÀiVÌÊÌÊ-Õ««ÀÌÊ*iÀÃÃÊÜÌ Ê Ã>LÌiÃÊ>ÌÊ
Lintec Singapore Private Limited
As part of its social contribution initiatives, Lintec
Singapore Private Limited has partnered with Hearts@
Work*2 since March 2010. Through this project thecompany requests persons with intellectual challenges toperform packaging work for certain products.
The first shipment was made in May 2010, andcustomers weresatisfied. The
company willcontinue to support
the independenceof persons withdisabilities and stay
actively involved incommunity-based
initiatives.

Through employees who work at Printec, Inc., Lintec
provided its pressure-sensitive memo products to thevolunteer center in the city of Rikuzentakata, which was
almost completely destroyed in the Great East Japan
Earthquake. The memos were distributed to sign language
clubs in addition to evacuation shelters and schools in
Rikuzentakata. Recipients were very glad to have thememos for writing messages and posting notes.
Lintec will continue providing all the support it can.

Careful packaging work
Staff of the volunteer center in Rikuzentakata*1 AED: Automated external defibrillator. A medical device designed to returna heart undergoing ventricular fibrillation to normal condition by applying
an electric shock.
*2 Hearts@Work: A project of the non-profit Catholic Welfare Services, which
encourages the independence of persons with intellectual challenges andtheir participation in socioeconomic activities.

Pressure-sensitive memos*3 Rainbow Matsubara: A vocational aid center for persons with intellectual
challenges in the Warabi City Social Welfare Center that gives employment
introductions after providing needed training to persons with intellectual
challenges who have difficulty finding employment.

19Social Report
Communicating with Stakeholders

Communicating with Stakeholders
What does society expect of Lintec and what should the company do to respond? Continual communication withstakeholders is essential to answering these questions. The Lintec Group actively disseminates information andholds dialogues with stakeholders.

Communicating with Customers

Communicating with Local CommunitiesÝ LÌ}Ê>ÌÊ Ý LÌÃÊÊ>`Ê"ÕÌÃ`iÊ>«>"vviÀ}Ê*>ÌÊ>`Ê>VÌÞÊ/ÕÀÃ

Lintec participants in exhibitions held in and outside
Japan to create opportunities to listen to the opinions ofmore customers. In
fiscal 2010, Lintec
exhibited at a totalof 14 exhibitions
and received
valuable feedback
about its products.

Every year the Lintec Group in Japan accepts numerous
students, local authorities, NPOs, consumer groups, andcommunity residents for tours of its plants and facilities.
It also holds social study tours and environmental
learning programsfor elementary
school students
and informational
meetings about thecompany for highschool students
looking for future
employment.

Exhibiting at the 5th RFID*1 Solutions Expo

Tour of the Agatsuma Plant for elementary
school students

Fiscal 2010 Exhibitions
In JapangNeo Functional Material 2010
g1st Highly-functional Film Technology Expog5th RFID Solution Expo

Communicating with Employees*ÕLV>ÌÊvÊÌ iÊ ÕÌÞÊ>}>âiÊLINTEC

gLabel Forum Japan 2010
gLogics-Tech Tokyo 2010
gNature Photonics Technology ConferencegSEMICON Japan 2010gEco-Products 2010
gPV EXPO 2011

Outside JapangFIMEC 2010 (Novo Hamburgo, Brazil)
gAll China Leather Exhibition 2010 (Shanghai, China)
gThe 5th China International Touch Screen Exhibition 2010 (Shenzhen, China)
gRFID/USN KOREA 2010 (Seoul, Korea)gSEMICON China 2011 (Shanghai, China)

The Lintec Group publishes a quarterly magazine
for employees to share information and deepen
understanding of Lintec’s business and the direction thecompany is heading. The magazine is also published in an
English version and two Chinese versions (simplified andtraditional characters). The magazine is distributed to allgroup employees as well as customers, suppliers, retirees,
the media, and government offices, and the past four
issues are posted on the company intranet.
Nearly 70 employees in and outside Japan cooperate
in the collection of information as editing members in
producing the magazine. The company will strive toenhance the content as a familiar communication toolthat connects managers with employees and employeeswith stakeholders.

Communicating with Suppliers
/ Ê-Õ««iÀÃ½Ê >Þ
As part of its communication with suppliers, the Ina
Technology Center (ITC) has since fiscal 2007 held annual
meetings with all of its suppliers in an effort to improvemutual understanding. In November 2010, 22 people from18 companies participated, with the Center explaining
Lintec’s procurement policy, financial performance andCSR efforts. Responses on a questionnaire conducted after
the meeting indicated a desire for continuation of thesemeetings, including “It was very useful,” and “I would liketo come again next time.”*1 RFID: Radio Frequency Identification. Technologies that can send and receive
data through close range wireless communication using electromagnetic
fields and radio waves from tags imbedded with ID data.

20

CommunityC
it M
Magazine
i LINTEC

Once a year a reader questionnaire survey is implemented
using the magazine, and efforts are made to strengthen
management and enhance IR initiatives based on the
feedback of opinions and requests.

Social Report-,Ê,i«ÀÌÊ*ÕLÃ i`ÊÊÛiÊ>}Õ>}iÃ

Communicating with Stakeholders

Starting with CSR Report 2010 (published in September2010), the Lintec Group publishes its CSR report in PDF
form translated into the local languages of its affiliates
outside Japan. The objective is to report on Lintec’s CSR
initiatives to local employees, customers, and suppliers ofgroup companies outside Japan. The message from thepresident, CSR implementation structure, and other mattersof interest are excerpted from the Japanese report andtranslated into five languages: English, Korean, Chinese(simplified and traditional), Malaysian, and Indonesian.

Shareholde magazine
Shareholder
WAVE
WA E

ÕV>Ì}ÊÜÌ Ê"Ì iÀÊÛiÃÌÀÃ-,Ê ÕV>ÌÊ>ÌÊÌiVÊ`ÕÃÌÀiÃÊ
­>>ÞÃ>®Ê-`°Ê `°Lintec Industries (Malaysia) Sdn. Bhd. used CSR Report2010 translated into Malaysian to hold four seminars togive local employees an understanding of CSR (first on
May 18, 2011).
The ability to communicate the content of the CSR
report to local employees directly in Malaysian has helped
promote the level of understanding of CSR. In coming
years, the company will continue using CSR reports as atool for communicating with local employees.

Lintec carries out various IR initiatives with the aimof achieving appropriate share pricing and increasing
corporate value.
For institutional investors in Japan, the company holds
semiannual results briefings, and also makes individual
visits and accepts media interviews about 300 times per
year, mainly following quarterly results announcements.
For institutional investors from outside Japan, thecompany makes individual visits to investors mainly in North
America and Europe. It also invites overseas investors toactively participate in events held in Japan. In this way, thecompany creates more opportunities for communication.
For individual investors, the company attempts to raise
Lintec’s recognition by holding informational meetings on
the company from time to time in major cities in Japansuch as Tokyo and Osaka.
Lintec also strives to provide thorough information in atimely manner to shareholders and investors by updating
and renewing its IR website as needed.

Individual meeting withinstitutional investors fromoutside JapanÌiVÊ,ÊÜiLÃÌi\ http://www.lintec-global.com/ir/
Seminar on CSR using the translated CSR Report 2010

Main IR events in Fiscal 2010
Date

Communicating with Shareholders and"Ì iÀÊÛiÃÌÀÃ
Communicating with Shareholders
Lintec regards the general meeting of shareholders held
every June as a valuable opportunity for communication.
The company avoids days on which many companies holdshareholders meetings in order to have as many people
as possible attend. A shareholder briefing is held after thegeneral meeting with the aims of promoting understandingof Lintec and facilitating dialogue with shareholders.
The company also publishes the quarterly shareholder
magazine WAVE, which includes financial information,business strategies, and product information, as a tool
to give shareholders a better understanding of Lintec.

Event
฀

May 20, 2010

฀

฀

฀

September 9–10,
2010
November 17,
2010฀

January 12, 2011

฀March 1–2, 2011

฀March 8, 2011

฀
฀

฀

฀

฀
฀

July 13, 2010

March 25, 2011฀฀July 10, 2010

Target investors฀฀฀

Individual฀฀

Individual฀฀฀
institutional

฀

฀

฀

฀

฀

฀ ฀

฀
฀

฀

฀

institutional฀฀

institutional฀฀฀
institutional

฀
฀

฀

฀

฀

Individual

21

Environmental Report
The Lintec Group regards environmental protection as an important building blockin the foundation of its corporate survival. The group is carrying out a variety ofenvironmental protection initiatives under the slogan “We have to broaden our
scope when working to support the environment. There is only one earth.”

Environmental Management System
The Lintec Group has established an environmental management system based on the ISO 14001
international standard. The group is taking a number of initiatives to reduce the environmental impact ofits business operations.

ÛÀiÌ>Ê>>}iiÌÊ-ÞÃÌi\ÊvvÀÌÃÊÌÊ"LÌ>ÊÌi}À>Ìi`Ê iÀÌvV>Ì
Lintec’s head office, 10 plants in Japan, the ResearchCenter, and Tokyo Lintec Kako, Inc., operate an integrated
ISO 14001 environmental management system. Moreover,
the Lintec Group is moving forward with efforts to obtain
integrated global ISO 14001 certification*1 including thefive group companies outside Japan that have alreadyacquired ISO 14001 certification. In March 2011, Lintec(Tianjin) Industry Co., Ltd., was integrated. Together
with Lintec (Suzhou) Tech Corporation, two companies
outside Japan havebeen integrated asof April 2011. In
fiscal 2011, Lintec
will pursue theintegration of PT.
Lintec Indonesia,
Lintec Korea, Inc.,
and Lintec Industries
Kickoff meeting in Malaysia(Malaysia) Sdn. Bhd.
ISO 14001 Certification at Group Companies Outside Japan
Company Name

Integration Date

Lintec (Suzhou) Tech Corporation
Lintec (Tianjin) Industry Co., Ltd.

May 21, 2010
March 28, 2011

PT. Lintec Indonesia
Lintec Korea, Inc.
Lintec Industries (Malaysia) Sdn. Bhd.

FY2011 (planned)

environmental audits are also conducted at each of theplants of the five group companies outside Japan thathave acquired ISO 14001 certification.

Internal environmental
audit at Lintec (Suzhou)
Tech Corporation

Environmental Compliance
Lintec ascertains the content of and complies withenvironmental laws and regulations that are relevant to
its business activities. This work is mainly carried out byenvironmental management departments. The environmental
management system itself incorporates a process forconfirming the status of the company’s legal compliance.
In fiscal 2010, an ISO 14001 maintenance inspection
found that Lintec (Suzhou) Tech Corporation had not
calibrated gas concentration measurement devices as specified
by Chinese law. This law, which does not exist in Japan, waslegislated to prevent explosion accidents. The devices were
calibrated right away and a new procedure established.
`ÛiÀÃÌÞÊ*ÀÌiVÌÊ``i`Ê>ÃÊ>Ê iÜÊÌiÌiÀ>Ê ÛÀiÌ>ÊÕ`Ì}
In Japan, Lintec is promoting more efficient and effective
environmental management by combining two types ofinternal environmental audits: crossover environmental
audits where different sites audit each other; andenvironmental audits conducted by each site.
Lintec is training ISO 14001 assistant auditors to help
carry out these audits. One new assistant auditor wasadded in April 2011, making a total of three. Internal*1 Integrated global ISO 14001 certification: ISO 14001 certification covering
multiple business sites worldwide as a single organization.
*2 Basic Act on Biodiversity: The first basic law enacted in Japan with the aimof protecting biodiversity, which went into effect in June 2008. It covers

22

Japan’s Basic Act on Biodiversity*2 went into effect inJune 2008, and is designed to protect biodiversity. In fiscal
2011, Lintec added the protection of biodiversity to theenvironmental policy under its ISO 14001 environmental
management system and began related initiatives. Fiscal
2011 has been positioned as a year to raise employee
awareness of the protection of biodiversity. Information
related to biodiversity is being disseminated through Lintec
Econews and other channels in an effort to make thisimportant topic well known throughout the company.

matters such as using natural resources through sustainable methods
out of consideration for the protection of biodiversity and finding“preventive” solutions to problems before beginning projects that could
threaten the environment.

As a responsible manufacturing enterprise, the Lintec Group strives to develop products that reduce
environmental impact. The Group also works to reduce impact on the environment from resource
extraction and the procurement of raw materials through production processes to disposal by including
life cycle assessments right from the design stage.

In February 2010, Lintec established guidelines forenvironmentally friendly products.
Traditionally, Lintec focused classification on performance,
but it has now started using LCA-based environmental
assessments at the design stage. In fiscal 2010, theproduction of products without environmentally harmful
substances and the reduction of production processes
translated into lower energy consumption during production.

Developing Products that Help ReduceÛÀiÌ>Ê«>VÌ
The Lintec Group has positioned environmental andenergy businesses as an important focus and is developinga variety of products in these fields. Some of the main
products are window films that contribute to energy
conservation through high thermal insulating capacity andbacksheets that increase the durability of photovoltaic
cells. Going forward, the group will continue focusing on
the development of products that help save energy andreduce environmental impact, such as new components
for next-generation photovoltaic cells and environmentallyfriendly adhesive materials.
Backsheets for Photovoltaic Modules
Backsheets attached to the back side of photovoltaic
modules as a protector must deliver various kinds ofperformance, including the durability and moistureresistance needed to withstand long-term outdoor use as
well as electrical insulation properties. Lintec offers various
kinds of multi-laminate PV backsheets made with a special
fluorocarbon resin coating.
The highly durable special
coating of the outermost layer,
based on an original design,
will protect the inner structure(main body) for a long time.

Environmental Management System / Developing Environmentally Friendly Products

Guidelines for Environmentally
Friendly Products

Environmental
ReportDeveloping Environmentally Friendly Products

What is LCA?

LCA, which stands for “life cycle assessment,” is a methodof comprehensively assessing effects on the environment
by calculating the input of energy, water, and raw materials
and the output of CO2 and harmful chemical substances
throughout the entire lifecycle of a product (from resource
extraction and raw material procurement throughdevelopment, design, manufacturing, transport, sales, use,
recycling, and disposal). LCA is used in the development of
products with a low environmental impact and in productassessment. Depending on the purpose for which an LCA
is used, the scope of the lifecycle, the environmental field(climate change, waste, resource conservation, air pollution,water pollution, etc.), and other parameters are set individually.
For that reason, simple comparisons cannot be made between
assessment results for items with different parameters.

ÀV ÌiVÌÕÀ>Ê7`ÜÊÃÊÌ >ÌÊVÀi>ÃiÊÀÊ
Conditioning Efficiency
Lintec’s architectural window films include products
which combine energy-saving effects and glass shatterproofing effects. These window films are an effective useof resources in that they prevent secondary disasters frombroken window glass and help to address climate change
issues with the energy-saving performance of their highinsulating effectiveness.
The transparent insulating films demonstrate excellent
insulating effectiveness by absorbing and reflecting abroad spectrum of solar radiation, mainly in the invisible
infrared band, while maintaining nearly the same visible
light transmission as conventional transparent films.
Simply by attaching them to window glass, these films
are effective at facilitating energy conservation because
they help to increase air conditioning efficiency during
the summer. Moreover, the reflective type also shows
effectiveness in improving heating efficiency in the winterby reflecting far-infrared radiation back into the building.
Lintec’s window films include products that
conform to Japan’s Green Purchasing Law.*1*1 Products conforming to Japan’s Green
Purchasing Law: The Green Purchasing
Law establishes “judgment criteria” and“principles for consideration” as standards forthe environmental friendliness of specified
items and encourages efforts to purchaseproducts that conform to those standards.

Example of installed
insulating film

Voice 5/>>Ã Ê
Matsushita
Research &Development
Division

Developing Products Effective for Saving Energy
I work on the development of solar shading films that play an effective part in energysaving measures, which have been in high demand in recent years, while also maintaining
performance in preventing the scattering of splinters of glass when a window breaks,
which is the basic feature of window films.
Going forward, we will continue developing products that meet market needs, such as
products that qualify as specified procurement items under Japan’s Green Purchasing Law.

23

Environmental
ReportFighting Climate Change

Fighting Climate Change
Always pursuing a balance between economic and environmental performance, the Lintec Group conducts its
business operations with the commitment to reducing environmental impact expected of a responsible materials
manufacturer. The group strives to save energy in addition to carrying out initiatives aimed at reducing carbon
dioxide (CO2) emissions from both manufacturing and distribution.

Efforts in Manufacturing-Ì>ÌÕÃÊvÊ «>ViÊÜÌ Ê>«>½ÃÊ iÀ}ÞÊ
Conservation Law
Energy use by the entire Lintec Group in Japan exceeds
1,500 kL crude oil equivalent each year. Accordingly, in
October 2010 the group was designated a “Specified
Business Operator” pursuant to the provisions of Japan’s Act
on the Rational Use of Energy (Energy Conservation Law). At
the time, seven plants were designated as Type 1 DesignatedEnergy Management Factories and three business sites as
Type 2 Designated Energy Management Factories.
These designations mean that the Lintec Group in
Japan must, as a whole, improve its energy use per
production unit by 1% per year. Going forward, the groupwill continue to strengthen its efforts to conserve energy.

Complying with the Saitama Prefecture"À`>ViÊÊÌ iÊ*ÀÌÊvÊL>Ê7>À}Ê
Countermeasures
The Saitama Prefecture Ordinance on the Promotion of
Global Warming Countermeasures has been in effectsince fiscal 2010. Lintec’s Kumagaya Plant, ResearchCenter, and Ina Technology Center, all located in
Saitama Prefecture, are subject to this regulation. Thesefacilities are taking energy-saving actions to achieve theirvoluntarily set targets for CO2 emissions reduction andare working to reduce CO2 emissions derived from fossil
energies. The Kumagaya Plant and the Research Center
have the obligation to make thorough cuts of 6% and
8%, respectively, per year through March 2014 basedon the CO2 emissions basis voluntarily set in April 2011.
Energy-saving initiatives will be strengthened to comply
with the law.

COÓÊ ÃÃÃÊ>`Ê/Ì>Ê iÀ}ÞÊ1Ãi
With 183,000 tons of CO2 emissions in fiscal 2010, thetarget for the year (no more than 185,000 tons) was
achieved. On the other hand, total energy use (crude oil
equivalent) increased by about 9% over the previous year
due to an increase in production driven by the economic
recovery. Despite this, CO2 emissions were kept at about
the same level as the year before as a result of the switch
to fuels that emit less CO2.
Total energy use (crude oil equivalent) in fiscal 2010
was 99,000 kL, and energy use per unit of production was
0.36kL/ton. Before, Lintec used to assess per-unit energy
use in terms of sales, but switched in fiscal 2010 toassessment per unit of production (tons) based on Japan’s
Revised Energy Conservation Law.*1

CO2 Emissions
250

211
200

24

210

182

190

182

183

2008

2009

2010

150
100
50
0

1990

2006

2007

(FY)

Notes: 1. The amount of CO2 emissions is calculated by applying a CO2 emission
coefficient to the amounts of electricity and fuel used.
2. The CO2 emission coefficient used until fiscal 2005 was one revised in
December 2002, based on the coefficient established by Article 3, Paragraph
1 of the enforcement order for Japan’s Act on Promotion of Global
Warming Countermeasures. The coefficient revised in March 2006, based on
the same enforcement order, was used for fiscal 2006 to 2008. The emission
coefficients provided by the power companies that supply electricity to thefacilities concerned were used as the purchased electricity coefficients.
The coefficient revised in March 2010, based on the same enforcement
order, was used for fiscal 2009 to 2010. The emission coefficients provided
by the power companies that supply electricity to the facilities concerned
were used as the purchased electricity coefficients.
3. The emissions shown above are CO2 emissions from fuel derived fromfossil energies.

Total Energy Use (Crude Oil Equivalent)
Purchased electricity

Fuel

Basic unit (energy usage/sales)(kL/tons)(1,000 kL)

140
120
100

100

103

99

66

64

61

80
60

0.70

0.36
91

0.60

99

0.50
0.40

55

0.30

61

0.20

40
20
0

34

39

38

36

38

2006

2007

2008

2009

2010

0.10
0.00
(FY)

Note: Fuel means kerosene, Bunker-A oil, LNG, LPG, and utility gas.

Efforts to Reduce COÓÊ ÃÃÃ\Ê}>ÌÃÕ>Ê*>Ì
The Agatsuma Plant has been moving forward with theconversion of fuel from heavy oil to liquid natural gas(LNG) since January 2010. In January 2011, it switched
the fuel for all its boilers to LNG and added a second LNG
storage tank. The plant expects the installation of theadditional LNG facility to result in a total reduction in CO2emissions of about 3,450 tons/year. This fuel conversion iscontributing not only to reduction of CO2 but also cutting
air pollutants such as NOx, SOx, and smoke dust.

LNG satellite facility*1 Revised Energy Conservation Law: Short title of Japan’s Act on the Rational
Use of Energy. The law was revised in fiscal 2008, changing regulations that
until then were at the business site level to the business operator level.

FY2010target:185(1,000 tons CO2)

Efforts to Reduce Power Used for Lighting
All business sites belonging to the Lintec Group in Japanare carrying out measures to reduce power used forlighting, such as removing incandescent light bulbs,
reducing the number of florescent bulbs, keeping lighting
off when unneeded, and switching from mercury lamps to
low-power lamps.
In December 2010, Tokyo Lintec Kako, Inc., switchedeight outer wall mercury lamps, three florescent lamps
in a freight elevator, and 18 florescent lamps in the truck
yard to LED*2 lighting. This resulted in a power reductionof over 50% compared to before the switchover. Anotherfeature of LED lighting is that it does not attract many
insects, which can help reduce the threat they can pose to
product quality.

In April 2011, new committees were established topromote energy savings even at the Lintec head office,Ina Technology Center, and Tokyo Lintec Kako, Inc., where
power usage is low. Going forward, Lintec will continue
to step up its efforts to save energy.

Fighting Climate Change

In fiscal 2010, the Tatsuno Plant also conductedconversion work on its boilers to accelerate its fuelconversion program. The plant expects this effort to havean annual CO2 emissions reduction effect of about 2,800
tons. Anticipating energy shortages due to the effectsof the Great East Japan Earthquake, in fiscal 2011 andbeyond the plant will work at reducing energy use andCO2 emissions through energy conservation efforts suchas reducing heat loss by effectively utilizing steam andother waste heat generated by production equipment andby reducing energy loss from air conditioning.

Environmental
ReportEfforts to Reduce COÓÊ ÃÃÃ\Ê/>ÌÃÕÊ*>ÌvvÀÌÃÊÊ ÃÌÀLÕÌ
Lintec has no distribution or transportation department,
but it is a Designated Shipper under Japan’s Revised
Energy Conservation Law, because it consigns thetransport of more than 30 million ton-kilometers annually.
This law requires designated shippers to improve theirtransport-related energy efficiency. It also requires
the submission of an annual transport-related energy
conservation plan.
In fiscal 2010, CO2 emissions from transportation were
11,800 tons, which was up about 7.3% from the previous
year but down 19.7% compared to fiscal 2006. Energy
use was 4,438 kL (crude oil conversion), an increase ofabout 7% over the previous year. Energy use per unit ofsales, on the other hand, declined by about 0.7% yearon-year to 0.0252 kL/million yen.
Lintec is doing its part in the fight against climatechange by striving to increase transport efficiency, improve
the transport load efficiency between plants, improvedelivery routes and methods for line hauls, and revise
transportation frequency.
CO2 Emissions and Transportation Volume
CO2 emissions(1,000 tons CO2)

20.0

Transportation volume(1 million ton-kilometers)

102

109

120

102
88

15.0

91

90

10.0

Tokyo Lintec Kako, Inc., where lighting was
switched to LED lighting

60

14.7
5.0

ÌÌiiÊ ÃÌ>LÃ i`ÊÌÊ*ÀÌiÊÌ>ÌÛiÃ
The Group-wide Energy Savings Promotion Committee,
established in March 2010, is leading efforts to undertake
energy-saving initiatives from multiple perspectives,
such as expanding the use of waste heat, improving theefficiency of boiler equipment, improving lighting fixtures,and optimizing the number of vending machines atbusiness sites.

0.0

2006

13.6

12.8

11.0

11.8

2007

2008

2009

2010

30
00
(FY)

Voice 6

Katsuyuki/>>>
Tokyo Lintec Kako, Inc.

/ÞÊÌiVÊ>½ÃÊ vvÀÌÃÊÌÊ->ÛiÊ iÀ}Þ
Tokyo Lintec Kako, Inc., mainly conducts slit processing and shipping of adhesive
products for seals and labels. Our energy use is lower than plants with coating processes,
but as a member of the Lintec Group we are committed to energy-saving initiatives andefforts to reduce energy use and CO2 emissions. In June 2011, we upgraded all 80 dual
lamp fluorescent lamps in the outgoing freight warehouse to LED lighting.

*2 LED: Light Emitting Diode. A luminous element with low environmental
impact, having a longer life than incandescent light bulbs, half the energy

use of fluorescent bulbs, no harmful substances such as mercury included in
the materials, and low heat generation.

25

Environmental
ReportReducing Waste

Reducing Waste
The Lintec Group constantly endeavors to reduce waste by working aggressively at the 3Rs: reduce, reuse,
and recycle.

Amounts of Waste Generated andEffectively Used
In fiscal 2010, the amount of waste generated, including
manufacturing loss, was 31,180 tons, which was up
1,920 tons from the previous year. This increase resulted
from increased production. The amount of waste output(amount of waste generated minus the amount usedeffectively internally and the amount sold as valuable
resources) was 12,090 tons, an increase of about 0.2%
over the previous year. Of the amount of waste output,
10,390 tons were used effectively externally. The 1,700
tons that could not be used effectively were consigned towaste treatment companies and combusted (1,690 tons)
or buried (10 tons) as appropriate. The target of 0.2%
or less for the final landfill disposal rate*1 was achieved
in fiscal 2010 with a rate of 0.03%. Zero emissions (final
landfill disposal rate of no more than 1%) were therefore
achieved, as has been done since fiscal 2007. In the
future, Lintec will continue to maintain zero emissions andalso further reduce the final landfill disposal of waste.

Waste Generated(1,000 tons)

35

33.8

30

6.3

25

6.7
1.6
5.1

20
15
10
5
0

34.4
4.2

30.2
4.8

Waste paper

Waste plastic

Waste oil

Sludge

Other

31.2
4.3
5.7
1.6
5.9

1.8
5.5

6.2
1.7
5.1

29.3
3.4
6.3
1.5
4.4

14.1

14.3

12.4

13.7

13.7

2006

2007

2008

2009

2010

8.6

(FY)

3R Efforts
Efforts to Reduce
The manufacturing department at each plant in the Lintec
Group attempts to increase productivity in order to limit
the generation of waste.

Efforts to Reuse
The Kumagaya Plant makes effective use of sludge*2
generated during the production of paper. Besides being
used as a material in cement, it is also used for raisingworms for fishing, although the amount for this use is still
small. Sludge from the Kumagaya
Plant contains no harmful
substances and so can be used
for cultivation. Besides for fishing,worms are also raised for theirexcretory substance, which is soldas fertilizer.

Fiscal 2010 Waste Flow

Waste effectively usedinternally: 9,920 tons

Waste
generated:
31,180 tons
Fertilizer produced by raisingworms on sludge

Valuable waste sold:
9,170 tons
Total waste
recycled:
29,480 tons
Actualwaste
disposed:
12,090tons

Waste effectively used
externally: 10,390 tons

Waste incinerated: 1,690 tons
Final landfill disposal:
10 tons

The Lintec Group is continuing to work at material
recycling.*3 The Tatsuno and Kumagaya plants makepaper waste that is unfit for material recycling into asolid fuel for thermal recycling*4 and use it as a fuel forsteam boilers. Additionally, waste generated at each plant,
including Tokyo Lintec Kako, Inc., is sold externally as
valuable material and used as recyclable resources.

Total waste
processed
externally:
1,700 tons

*1 Final landfill disposal rate: A value found using the following formula: Final landfill
disposal rate = Final landfill disposal amount / Amount of waste generated × 100*2 Sludge: Paper mill sludge consisting of fine wood fibers that were notturned into paper during the papermaking process, talc (a kind of clay
mineral), and loading materials (fillers) such as kaolin (a kind of clay).

26

Efforts to Recycle*3 Material recycling: The recycling of waste as a raw material, such as using
recovered paper as a raw material for recycled paper, turning empty cansinto metal and PET bottles into synthetic fiber material. Recycling other thanthermal recycling.

Environmental
ReportMeasures to Reduce Water Usage and Effluent
Recognizing that water is a limited resource, each plant in the Lintec Group strives to save water and reuserecovered water. The group also pays adequate attention to effluent quality in order to limit impact on thesurrounding environment.

Effluent Quantity and Quality

In fiscal 2010, Lintec used 7.698 million tons of water.
Of this amount, about 90% was used by the Kumagaya
and Mishima plants, which are Lintec’s papermaking
facilities. Together, these two plants used 6.953 million
tons of water, which was an increase of about 7% overthe previous year. This increase was the result of increased
production. Nevertheless, this water usage represented
a decrease of about 41% compared with fiscal 2000. In
fiscal 2010, the two plants' water usage per unit of paper
production was 57.7 tons/ton, a decrease of 0.9 tons/ton
compared to fiscal 2009.

Process from Water Intake to Effluent

Industrial
water
7.698 million tons฀฀Production
process

Effluent
treatment

Used mainly for papermaking
processes at Kumagaya andMishima plants

Water usage amount

20,00011,883
10,0007.485 million tons฀฀฀Regulations
on totalemissions

Item

Wastewater
standards

pH

Results
Maximum
value

Averagevalue

5.8-8.6

6.6-7.9

7

SS*5 (mg/L)

60 (50) or
less

40

16

BOD*6 (mg/L)

20 or less

19

9

COD*7 (mg/L)

-

41

22

COD (tons/day)

0.858 or less

0.188

-

Nitrogen(tons/day)

0.4068 or
less

0.0340-

Phosphorous(tons/day)

0.0418 or
less0.0010-(tons/tons)

100.0

60.9
8,439

55.9

54.3

58.6

2006

Item

Wastewater
standards

57.7

pH

Averagevalue

5.8-8.6

6.1-7.9

7

SS (mg/L)

80 (60) or
less

43

5

COD (mg/L)

90 (65) or
less

89

27

COD (tons/day)

0.9431 or
less

0.3000-

Nitrogen(tons/day)

0.3961 or
less

0.0450-

Phosphorous(tons/day)

0.0405 or
less

0.0009

-

50.0

7,149

6,964

6,479

6,953

2007

2008

2009

2010

Regulations
on emission
concentration

0.0
(FY)

Regulations
on totalemissions

Results
Maximum
value

75.0

25.0

2000

mKumagaya Plant

mMishima Plant

paper production tonnage

5,000
0

Effluent Water Quality (Fiscal 2010)

Effluent

95.3

15,000The entire amount of effluent produced by Lintec infiscal 2010 was 7.485 million tons. About 91% of this(6.802 million tons) was released from the Kumagaya andMishima plants.

Regulations
on emission
concentration

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

Measures to Reduce Water Usage and Effluent

Water Usage

The Kumagaya and Mishima plants continuously strive
to reduce water usage by reusing recovered water (whitewater, coolant water), recovering and reusing cleaningwater, and preventing water leaks.

Notes: 1. Figures in parentheses ( ) are the daily average values. The regulations foreach plant are as follows:Õ>}>Þ>Ê*>Ì\ The regulation value shown for BOD is based on a value
agreed upon with the city of Kumagaya. The values shown for pH, SS, COD(total emission), nitrogen, and phosphorus are based on the environmental
protection ordinances and notices of Saitama Prefecture.
Ã >Ê*>Ì\ The regulation values shown for pH, SS, and COD (emission
concentration) are based on the Water Pollution Control Law, while thevalues for COD (total emissions), nitrogen, and phosphorus are based on
notices from Ehime Prefecture.
2. In the column showing the maximum values of the results, the minimum
to maximum values are shown for pH and the total value is shown forregulations on total emissions.

*4 Thermal recycling: The recycling of waste as a source of energy, recovering
heat and electricity from it and turning it into a fuel, instead of simply
incinerating it.
*5 SS: Suspended solid, material suspended in water, making it murky.

*6 BOD: Biochemical oxygen demand, amount of oxygen consumed whenmicroorganisms break down organic matter in the water.
*7 COD: Chemical oxygen demand, amount of oxygen needed to oxidize
oxidation reactants in water.

Water Conservation Measures

27

Environmental
ReportReduction of Chemicals with Environmental Impact,i`ÕVÌÊvÊ

iV>ÃÊÜÌ Ê ÛÀiÌ>Ê«>VÌ

The Lintec Group complies with regulations in and outside Japan and strives to reduce chemical substancesthat have an impact on the environment.

*,/,Ê «>Vi
In fiscal 2010, Lintec used six substances that are subject to
PRTR*1 reporting. The total quantity of PRTR chemicals was
9,289 tons. Toluene accounted for the largest portion ofthis amount, at 9,107 tons, up 627 tons from the previous
year (8,480 tons). Emissions of toluene into the atmosphere
were 555 tons, down 685 tons from the previous year
(1,240 tons), and the transferred amount was 638 tons,
down 62 tons from the year before (700 tons).
Fiscal 2010 Emission and Transfer of Toluene

Another chemical substances regulation is the CLP
Regulation.*2 This regulation came into effect on January
20, 2009 with phased implementation through June 1,
2015. As with the REACH Regulation, Lintec is committed
to complying with the CLP Regulation.

Proper Storage and Management of
Polychlorinated Biphenyl (PCB)
The Lintec Group in Japan properly stores and manages
wastes containing PCBs.*3

EmissionsÌÊÌ iÊ>À\
555 tons

Status of Proper Storage and Management of PCB
Site name/ÕiiÊ>`i`\
]£äÇÊÌÃ

Quantityi>Ìi`\Ç]£{ÊÌÃ฀฀

Manufacturing
processes for release
paper and adhesive
products

Exhaustprocessing
equipment

Lintec plant

Toluene flow

Note: Elimination rate = eliminated amount / (handlingamount - transferred amount) ×100

Quantitytransferred฀ ฀ÈÎnÊÌÃ

Number of Treatment facility Year of registration Expected
for consignment processing
stored units
JESCO
treatmentcompletionof PCB waste

Agatsuma Plant

1

Plan to register for consignment treatment
in fiscal 2011

Kumagaya Plant

20

Tokyo office

2005

Fiscal 2011or laterMishima Plant

19

Kyushu office

2005

Undetermined

Tatsuno Plant

6

Osaka office

2006

Fiscal 2011or later

Tokyo Lintec
Kako, Inc.

7

Tokyo office

2005

Fiscal 2011or later

Note: Lintec reports omitted PCB storage at the Agatsuma Plant up through fiscal
2010. PCBs in the Agatsuma Plant are "low-concentration (trace amount) PCBcontaining electronic equipment (high voltage transformers),” and the plant
has properly been submitting notifications to the authorities since 2006.
Also, since the Japan Environmental Safety Corporation does not handle
the treatment of low-concentration PCBs, we intend to register with otherdisposal contractors, including private companies.

i>}ÊÜÌ ÊÃLiÃÌÃComplying with EU Regulations
Under the EU’s REACH Regulation on chemical
substances, substances of very high concern (SVHC)
carry an information transfer obligation. In August 2010,
11 more substances were announced as “candidates
for required authorization” as SVHCs, of which eight
were listed in December 2010, bring the list up to 46
substances. A further seven substances were announced
in February 2011 and listed in June 2011, bringing the list
up to a total of 53 substances.

*1 PRTR: Pollutant Release and Transfer Register, a system for ascertaining,
aggregating, and publishing data on the amounts of chemical substances
released and transferred. The system is based on Japan’s Act on Confirmation,etc. of Release Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof.

28

With plans to remodel the Shizuoka Branch, which wasconstructed in 1964, an investigation was carried out
in May 2011 to determine whether asbestos was usedin the branch building. The investigation found that afinishing material containing asbestos had been used in
the ceilings. In August 2011, the asbestos was properly
removed and treated by a specialized contractor.

*2 CLP Regulation: Regulation on the Classification, Labeling and Packaging of
substances and mixtures.
*3 PCB: Polychlorinated biphenyl. The Act on Special Measures concerning
Promotion of Proper Treatment of PCB Wastes (PCB Special Measures
Law) mandates the proper storage, management, and disposal of wastes
containing PCBs (PCB waste).

Environmental
ReportPercentage of Solvent-free Release Paper

Reduction of Volatile Organic
Compounds (VOCs)

(%)

60
50

/À>ÃÌ}ÊÌÊ-ÛiÌvÀiiÊ,ii>ÃiÊ}iÌ

45

47

2006

2007

52

53

51

2008

2009

2010

40

Switching to solvent-free release agent for release paperand solvent-free adhesive for printing-related adhesive
products is an environmental activity theme that Lintec
works on continuously, to reduce the amount of organic
solvents it uses.
In fiscal 2010, the percentage of solvent-free release
paper (production basis) was 51%, leaving the target
for the year (54% or more) unmet. Likewise, with thepercentage of solvent-free printing-related adhesive
products (production basis) at 68%, the target for theyear (70% or more) was unmet.
The switchover to solvent-free agents is being carried out
in order of those products that can be switched, and the main
products have been completed. In part because there are only
a few remaining products subject to switchover, this effort will
be conducted separately from Lintec's environmental activity
themes while still pursuing improvements in the future as apart of the company’s environmental initiatives.

30
20

0

(FY)

Note: Percentage of solvent-free release paper = quantity of solvent-free release
paper produced / quantity of all release paper produced x 100

Percentage of Solvent-free Printing-related Adhesive Products
(%)

80

69

69

71

68

68

2006

2007

2008

2009

2010

60
40
20
0

(FY)

Note: Percentage of solvent-free printing-related adhesive products = quantityof solvent-free printing-related adhesive products sold / quantity of all
printing-related adhesive products sold x 100

Environmental Accounting

Calculation Basis

The Lintec Group in Japan uses environmental accounting to ascertain thecosts and benefits of environmental protection, and will continue to carry out
environmental protection initiatives as effectively and efficiently as possible.

(1) The scope of data collection covers Lintec Corporation andTokyo Lintec Kako, Inc. Other affiliates are not included.
(2) The data is for the period from April 1, 2010, to March 31, 2011.
(3) The Environmental Accounting Guidelines (2005) fromthe Japanese Ministry of the Environment were used asa reference.

Fiscal 2010 Environmental Conservation Costs(Unit: ¥1 million)

Category
฀

฀
฀

฀

฀

฀
฀

฀

฀

฀

฀

฀

-

฀ ฀
prevent air pollution
฀ ฀
prevent water pollution
฀ ฀
฀

73

Fuel conversion11

฀ ฀
generation equipment

250
10Fuel conversion equipment
installation
Installation of cogenerationequipment and photovoltaic system

฀

฀

฀

-

Expenses

฀ ฀

฀ ฀

543

฀ ฀

฀ ฀

111
7
235

฀ ฀

฀

฀

389

฀

Wastepaper processing
equipment installation฀฀฀
b. Treating, reducing and recycling waste
installation
Collecting, recycling, and reusing byproducts฀฀ ฀Green procurement and purchasing฀฀

3. Administration
cost

Details of main initiatives

฀

฀

฀

2. Upstream/
downstream
cost

฀
฀

฀

฀
installation฀
installation

฀ ฀

฀
฀

Investments฀฀

1. Business area
cost

Subject equipment

฀

Reduction of Chemicals with Environmental Impact

10

฀

฀

฀

฀

฀

4. R&D cost
5. Environmental improvement cost
6. Environmental remediation cost
Total

31
-

-

-

-

0

฀ ฀
฀
measuring air and water

Constructing environmental management
systems and obtaining certification฀฀ ฀
environmental conservation measures
฀

78

฀

-

-

-

-

-

-

-

-

453

฀ ฀
฀ ฀
฀
processing equipment
฀ ฀
฀ ฀
฀ ฀
฀
฀
฀
Collecting, recycling, and reusing pallets and roll cores
฀

฀
฀ ฀

฀

฀

฀

฀

฀

฀

฀

฀

฀ ฀

34
฀

2

฀

฀
฀

฀
-

19
0

฀

฀ ฀ ฀CSR Report ฀
฀
฀ ฀
฀

358

3

฀

Analysis of product, air, and water quality
฀

316

315
฀ ฀

฀

22
408
3
39
2,804

Note: Investment in exhaust processing equipment installation includes spare parts and miscellaneous work.

P11 Environmental Regulations Pertaining to Products,-Ê ÀiVÌÛi\ Effective from July 2006, an EU directive restricting the useof certain hazardous substances in electrical and electronic equipment. The six
specified hazardous substances are: lead, mercury, cadmium, hexavalent chromium,polybrominated biphenyls (PBB), and polybrominated diphenyl ether (PBDE).
*"-Ê,i}Õ>Ì\ Perfluorooctanesulfonic acid (PFOS) is a man-madeorganofluorine compound. The PFOS Regulation, which is a chemical substanceregulation in the EU, has prohibited by an EU directive the use of products
containing over a certain amount of PFOS since June 2008 (some exclusions apply).
,  Ê,i}Õ>Ì\ A chemical substance regulation in the EU on the“Registration, Evaluation, Authorization and Restriction of Chemicals.”
Registration is required when exporting a chemical substance into EU statesin quantities of one metric ton or more per year. Notification must also be
submitted to the authorities when a chemical substance falling under the
category of candidate for required authorization is present in a product at
more than 0.1% of the mass of the object.
"À}>ÌÊV«Õ`ÃÊÀi}Õ>ÌÃ\ The EU had already been regulatingorganotin compounds for a long time when it strengthened its regulations oforganotin compounds contained in products in June 2009. Various regulations
have become effective since June 2010.

29

Environmental
ReportEnvironmental Activities of Eight Group Companies
Outside Japan
Japan
China
Korea
2Ê / Ê­/  ®Ê /1-/,9Ê "°]Ê/ °Ê ",*",/" Ê­i>`Ê"vvVi®

Environmental Activities of Eight Group Companies Outside Japan

4Ê / Ê", ]Ê1Ê / Ê­-1<"1®Ê/ Ê ",*",/"°5Ê / Ê-* /9Ê-Ê­", ®]Ê°Taiwan3Ê / Ê-* /9Ê-Ê­/7 ®]Ê7Ê / Ê

1-/, -Ê­9-®Ê-°Ê  °

Malaysia8Ê / Ê
6

Ê*/°Ê /Ê"1-/, -Ê­-,7®Ê-°Ê  °-Indonesia1Ê /

Ê­-1<"1®Ê/Ê ",*",/"This company has been making the switchover to
LED lighting since January 2011 to facilitate safety
and energy savings.
In February 2011, it switched to LED lighting forthe plant, and will switch lighting in the warehousein the future. The company will continue to pursue
improved energy efficiency in this way.

2Ê /

Ê­/  ®Ê

1-/,9Ê "°]Ê/ °May 2010 saw the start of the campaign to achieve
globally integrated ISO 14001 certification. Internal
audits and management reviews were conductedaccording to an integration manual, and registration
was approved in March 2011. This company
will work at further reducing waste and raising
environmental awareness as an integrated site.
Company Overview

Company Overview

LED lighting in the plant3Ê /

Ê-*

Location:฀฀฀฀฀No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀฀
materials, industrial materials,
and products related to paper andprocessing material/9Ê-Ê­/7 ®]Ê

Since January 2010, this company has been measuring
VOCs using an automatic monitoring and measurement
device and routinely reporting the monthly results to theEnvironmental Protection Administration. It ascertains waste
output and is also considering using a waste (waste liquid)disposal company with a good environmental record.
The company also attends briefings held by theadministration office of the Southern Taiwan Science Parkand by the Environmental Protection Administration. It willcontinue to gather information relating to environmental
protection and make efforts to reduce waste and VOCs.

VOC automatic monitoring andmeasurement device

30

Company Overview
Location:
Shanhua Township, Tainan County,
TaiwanNo. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀฀and optical-related products

Location:฀฀฀
No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀฀
relating to printing materials andindustrial materials
Office of Lintec (Tianjin) Industry, whichobtained integrated ISO 14001 certification

4Ê /

Ê", ]Ê°The dangerous substances handling station in theclean room immediately exhausts air conditioning
air in light of possible emergencies, even if there is
no VOC gas. By redirecting the air conditioning air
into a temperature-controlled outside dangerous
substances warehouse, it is possible to stop existing
air conditioning equipment, which translates into
energy savings and reduced CO2 emissions.

Company Overview
Location:
฀

฀
฀
฀
฀
No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀and optical-related products
Exhaust duct for air conditioning air

฀

Ê-*

/9Ê-Ê­", ®]Ê

6Ê*/°Ê /

°

"

-

In April 2011, this company held an environmental
photo contest to raise employees’ awareness of theenvironment. The judges selected the top four works
by evaluating the exhibited photos on three points:
environmental message, title appropriateness, and picture
quality. Since June, the company has been displaying
information related to the environment each monthwithin the company in an effort to spread awareness.
Company Overview

Company Overview

Location:฀฀฀
No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀฀
relating to printing materials andindustrial materials

Location:฀฀
No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀and optical-related products฀฀

The first prize photo: “Don’t litter me up!”

Assembling wooden pallets

7Ê /

Ê

Environmental Activities of Eight Group Companies Outside Japan

This company continually monitors trends in its waste output
and makes efforts to save energy. In fiscal 2010, it changed
its method of handling wood waste (wooden pallets). It used
to dispose of wooden pallets used for shipments from Japanby incineration, because they could not be diverted for use
in distribution in Korea, where the size of pallets is different.
However, since September 2010, the company has beenreusing all wooden pallets by having a contractor cut thepallets and rebuild them to the Korean distribution standard.

ÊEnvironmental
Report5Ê /

1-/, -Ê­9-®Ê-8Ê /°Ê  °

Ê

1-/, -Ê­-,7®Ê-This company’s main business is cutting and shipping
films. Each month it generates on average about 3
tons of trimmings. With a view to environmental
protection, the company has a recycling company
take these away. The waste is categorized into twoclasses. Each class is designated by color and stored
in a temporary holding station to avoid mistakes
when it is being taken away.

This company’s staff members take turns presenting
on an environment-related topic during the morning
meeting every Friday. Having employees investigate andgive a presentation on environmental topics that they
are interested in has led to heightened environmental
awareness on the part of each individual.
The company will continue independently
undertaking initiatives that enable employee engagementwith environment issues.

Company Overview

Company Overview
Location:฀฀฀

Location:฀฀
No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀and optical-related products฀

No. of employees:
฀ ฀ ฀
฀ ฀
Main business activities:฀ ฀ ฀ ฀and optical-related products°Ê  °

฀฀
Film being collected as arecyclable material

Presentation during the morning
meeting by that day’s presenterÛÀiÌÊ*iÀvÀ>ViÊ >Ì>ÊÊÃV>ÊÓä£ä
Amount Handled and Emissions of VOCs
(tons/year)(kL/year)(MWh/year)

1,800

10,000

1,628

1,500

8,989
8,780
8,497
7,805

8,000

1,200

2,000

1,757
1,547

1,500

6,000

900
600 523

624

618
304

300
0

Fuel (Light Oil and Natural Gas)
Usage (Crude Oil Conversion)

Electricity Usage

Emissions into the air

Amount handled

5 00
Suzhou Tianjin

11
LSFT

3
Korea

59
LSFK

352
343

4,000 3,665
2,000

64 0 0Indonesia Malaysia Sarawak

Suzhou Tianjin

903

500 423

1,723
414

0

1,050

1,000

4,087

LSFT

Korea

LSFK Indonesia Malaysia Sarawak0

5
Suzhou Tianjin

67
LSFT

0
Korea

LSFK Indonesia Malaysia Sarawak

Notes: 1. VOCs = toluene and methyl ethyl ketone
2. Figures stipulated in the Article 4 of the enforcement regulations for Japan’s Energy Conservation Act were used
for the calorific value of each fuel used in order to calculate the crude oil equivalent of consumed fuel.
3. LSFT = Lintec Speciality Films (Taiwan)
LSFK = Lintec Speciality Films (Korea)

31

Environmental
ReportRelationship between Lintec and the Environment,i>ÌÃ «ÊLiÌÜiiÊÌiVÊ>`ÊÌ iÊ ÛÀiÌ
Lintec develops and manufactures various products, including adhesive products, specialty papers, processing
materials such as release papers, and adhesive-related equipment. The company is working to improve its
manufacturing methods and production efficiency in order to reduce the environmental impact caused by waste,
CO2, toluene and other pollutant release and transfer register (PRTR) substances, and effluent released into theenvironment through these business activities.
Fiscal 2010 Material Flow (Japan only)

Input

EnergyPurchased power

Raw materials

154,000 MWh(Crude oil equivalent: 38,000 kl)

Pulp

103,900 tons

Release agents

1,900 tons

Paper

36,100 tons

Organic solvents

10,000 tons

Film

27,000 tons

Other chemicals

39,600 tons

Adhesives

22,200 tons

Mechanical parts

500 tons

Fuel (crude oil conversion)

61,000 kl

Water
Industrial-use water

7,698,000 tons

Self-generated electricity(crude oil conversion: 14,000 kl)

55,000 MWh

OutputEnergy (heat)
Pulp
Chemicals and filler
Electricity and fuelRaw materials
adjustment

Specialty paper

Main Product Manufacturing Processes

Sheet formationand desiccation

Winding roll
DryingEffluentIndustrial-use water

Release paper

Release agent andorganic solvent

Energy (heat)

Releasepaper
products

Processed paper
DryingRelease agent
Organic solvent
Electricity and fuelWaste solution
Processed paper

Organic solvent gas emissions1
Exhaust processing Release paper

To the adhesive product process
Surface base material

Adhesive andorganic solvent

Release paper

Energy (heat)

Organic solvent
Electricity and fuel3

Surface base material

DryingAdhesive
Waste solution
Release paper

Waste generated
gWaste emitted

Adhesive
products

Organic solvent gas emissions2

Exhaust processing

Atmospheric emissions

Waste

Products

31,180 tons
12,090 tons

CO2

183,000 tons

SOx

9 tonsNOx

148 tons

Specialty papers

73,100 tons

Effective external utilization

Processing materials(release paper, etc.)(thermal recycling of material)

10,390 tons

Soot and dust

56,600 tons

Incineration

1,690 tons

Substances subject to the PRTR

Adhesive products

76,900 tons

Final landfill disposal

Adhesive-related equipment

500 tons

3 tons
600 tons

10 tons

gEffective internal utilization

9,920 tons,ii>ÃiÊÌÊÜ>ÌiÀÊL`iÃ

gSale of valuable materials

9,170 tons

Effluent

Note: 1. If solvent-free silicone (release agent) is used, no organic solvent emissions are released.
2. If a solvent-free adhesive is used, no organic solvent emissions are released.
3. Inside sales are not included in “Output” figures.

32

Specialty
paper
products

To the release paper process

Adhesive products

Business Activities of Lintec

Lintec manufactures and sells adhesive products, specialty papers, processing materials,
and adhesive-related equipment, and also carries out R&D, head office administration, etc.

Pulp, chemicals, and filler

7,485,000 tonsÀ«À>ÌiÊ*ÀwiÊ­>ÃÊvÊ>ÀV ÊÎ£]ÊÓä££®
Company name

LINTEC Corporation

Head office23-23, Honcho, Itabashi-ku, Tokyo 173-0001, Japan

Websitewww.lintec-global.com/

Established
CapitalOctober 193423.2 billion yen

Stock listing

Tokyo Stock Exchange, 1st Section Securities Code: 7966Fiscal year-end

March 31

Representative
Akihiko Ouchi, President and CEO
Number of employees Consolidated: 4,198; Non-consolidated: 2,529
Sites

Sales offices:Tokyo, Sapporo, Sendai, Hokuriku (Toyama Prefecture), Shizuoka, Nagoya, Osaka,

Hiroshima, Shikoku (Ehime Prefecture), Fukuoka, and Kumamoto
Production sites: Agatsuma (Gunma Prefecture), Kumagaya (Saitama Prefecture), Ina (Saitama Prefecture), Chiba,
Tatsuno (Hyogo Prefecture), Shingu (Hyogo Prefecture), Komatsushima (Tokushima Prefecture),Mishima (Ehime Prefecture), Doi (Ehime Prefecture), and Niihama (Ehime Prefecture)
R&D facility:
Research Center (Saitama Prefecture)
Overseas office: Shanghai, China
Consolidated: 4 companies in Japan, 18 companies outside Japan
Non-consolidated: 5 companies in Japan, 6 companies outside Japan
Development, manufacturing, and sales of adhesive products (seal and label material, graphic film, window
film, tape for semiconductor manufacturing, optical function film, health-care products, etc.); specialty papers(color envelope paper, color paper, special function paper, etc.); processing materials (release paper, release film,
casting paper for synthetic leather, casting paper for carbon fiber composite material, etc.); and adhesive-related
devices (label printing machines, labeling machines, devices for semiconductor manufacturing, etc.)
Consolidated: 212.7 billion yen; Non-consolidated: 176.0 billion yen (fiscal 2010)
Consolidated: 20.9 billion yen; Non-consolidated: 11.4 billion yen (fiscal 2010)

Subsidiaries
Business activities

Sales
Operating income
Sales

Consolidated

Operating Income

Non-consolidated(billion yen)

250
200
150

Consolidated

Non-consolidated(billion yen)

25.0

192.7

202.3

171.3

194.9

172.1

212.7

20.9

189.3

160.9

162.6

20.0

176.0

15.0

100

10.0

50

5.0

0

0

2006

2007

2008

2009

2010

(FY)

14.8

14.9
11.6

9.1

7.3

8.5

11.4

7.0

2.3
2006

2007

2008

2009

2010

(FY)

For more detailed financial information, see the Investor Relations section of the Lintec Website atwww.lintec-global.com/ir/

Results of Employee Survey regarding the CSR Report 2010
A questionnaire survey was offered to employees of the Lintec
Group in Japan, including affiliated companies, in conjunction
with the publication of CSR Report 2010. Increased font size andexplanation of terminology—two points that were requestedon the 2009 questionnaire—were improved in CSR Report2010 and were not pointed out in the 2010 survey. Aside from

opinions about the CSR report itself, there were many requests
regarding CSR initiatives overall, such as requests for continued
implementation of the questionnaire, extension of initiatives
to group companies outside Japan, and promotion of CSR
communication. CSR will continue to be addressed while referring
to questionnaire feedback.

`ÌÀ½ÃÊ«ÃÌÃVÀ«ÌUp through CSR Report 2010, the content of the report was structured mainly
around the efforts of the six CSR committees that drive CSR initiatives forward
within the group. In this CSR Report 2011, the basic layout was reorganized
into three sections—corporate governance, social report, and environmental
report—to make the comparison of disclosed items easier. Additionally, forthe first time an exchange of opinions was held between the president and an
outside expert. We asked about changes in the social landscape and opinions
about the group’s CSR initiatives, and the president articulated a commitment
to working on CSR (pp. 4–5).
We hope that CSR Report 2011, which describes Lintec’s CSR initiatives infiscal 2010, will be read by many people.
CSR Management Office

CSR Report 2011 production project members

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