LINTECANNUALREPORT2016

For the fiscal year
ended March 31, 2016

SOLID
FOUNDATION,SUSTAINABLE
FUTURE
LINTEC

Contents
1 COVER STORY—OUR VALUE CREATION
8 Performance Highlights

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

10 MANAGEMENT STRATEGY

Based on the International Integrated Reporting Framework released		 – 10 A Message from the President

by the International Integrated Reporting Council in December 2013, in		– 15 Business Overviewaddition to performance and financial information, this report also		– 22 Special Feature

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

variety not listed on the financial statements.

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

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

CSR Website

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

http://www.lintec-global.com/csr/		– 32 Corporate Governance		– 38 Corporate Officers
40 FINANCIAL SECTION		 – 41 Management’s Discussion and Analysis		– 43 Operating Risks		– 44 Financial Summary		 – 46 Consolidated Balance Sheet		 – 48 Consolidated Statement of Income		 – 48 Consolidated Statement of Comprehensive Income		 – 49 Consolidated Statement of Changes in Net Assets		 – 50 Consolidated Statement of Cash Flows		 – 51 Notes to Consolidated Financial Statements		 – 69	Management’s Report on Internal Control
over Financial Reporting		 – 70 Report of Independent Auditors
72 Investor InformationLINTEC ANNUAL REPORT 2016

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

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

Company Motto

Sincerity and Creativity

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

For tomorrow we build today

LINTEC ANNUAL REPORT 20161

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

“A-100 type”
label printing machine

Gummed tape

1920s to 60s

1970s to 80s

STAGE OF CREATION– STAGE OF BUSINESS BASE BUILDING

STAGE OF ENTRY INTOGROWTH BUSINESSES

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

packaging, FUJI SHOKAI reorganized to form FUJI SHIKO

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

CORPORATION in 1934 and began operations in earnest. At thatcolored adhesive films for use in body stripe stickers on motor-time, demand was rising rapidly for cardboard boxes to replace

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

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

trend spurred demand for gummed tape to seal cardboard boxes.

as outdoor signs led to the widespread adoption of our special

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

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

exterior decoration fields.

the foundations of our current mainstay businesses.

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

Time of establishment

2LINTEC ANNUAL REPORT 2016

UV-curable dicing tapeOptically functional filmsfor LCDs

LINTEC KOREA, INC.

1990s

2000s to today

SECOND STAGE OF CREATIONSTAGE OF GROWTH ACCELERATIONIn April 1990, FSK merged with SHIKOKU PAPER CO., LTD., aSince the turn of the century, the LINTEC Group has accelerated

supplier of release papers and other items, and SOHKEN KAKO

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

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

in a fresh start as LINTEC Corporation.

At the same time, we have reinforced manufacturing and sales

In 1991, we entered the field of optically functional films forsystems through such measures as expanding our network ofliquid crystal displays (LCDs). Subsequently, we established asales bases that have warehouses and slitting facilities. In 2015,

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

we established a regional headquarters in Singapore to increase

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

our competitiveness in the rapidly growing Southeast Asian andoperations in the region. In this manner, we globalized ourIndian markets. In the same year, we strengthened R&D capa-business. Also, 1995 saw the completion of the building for thebilities even further by establishing the Advanced Technology

Research & Development Division’s research center, which leads

Building adjacent to our existing research center in Japan.

our technological development.

Research Center

Advanced Technology
Building

LINTEC ANNUAL REPORT 20163

:::: COVER
COVER STORY
STORY

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

R&DExpenses(Fiscal year ended
March 31, 2016)¥7.6billion

Accumulated

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

4

LINTEC ANNUAL REPORT 2016

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

HUMAN
RESOURCES

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

No. ofEmployees(as of March 31, 2016)

4,246
LINTEC ANNUAL REPORT 20165

:: COVER STORY

Business Model that Realizes

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

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

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

catering to needs in diverse fields. Also, for areas other thansystem for adhesive products. In addition to developing adhe-adhesive products, we bring to market numerous uniquesives and related coating processes, we have independentlyproducts, such as industrial-use release papers and films asestablished a variety of technologies that enable operations

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

upstream technologies.

through to the development of release materials and related

Meanwhile, we develop equipment that maximizes the properties

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

ability to manufacture and procure release papers and films

labeling machines for the automated application of labels tofor adhesive products in-house gives us advantages in terms ofpackaging, and semiconductor-related equipment. In this way,quality, costs, and delivery lead times. Moreover, by combining

we offer comprehensive solutions that incorporate materials

various processing technologies, we create adhesive products

and equipment and which provide us with another advantage.

Integrated Production Systemfor Adhesive Products

Surface Improvement Processing

Adhesive Development andCoating, and Bonding

Surface Improvement
Facestock
Adhesive

Release Agent Development
and CoatingPapermaking

Release Agent
Base Paper

Related Equipment Development

Base Paper / FilmPrintingand Industrial
Materials
Products

Electronicand Optical
Products

Paperand Converted
Products

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