:: THE BASE THAT SUPPORTS GROWTH

R&D Activities and Intellectual Property

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

a technical magazine. We are continuing to seek out new

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

applications for this coating.

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

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

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

Semiconductor-Related Materials

Printing and Variable Information Materials

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

LINTEC succeeded in developing revolutionary bubble-free

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

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

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

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

LINTEC is contributing to increased density of LSI packaging

such as in the name and display labels attached to consumer

through measures such as the integration of this technology

electronics and electronic devices.

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

In addition, LINTEC has created a new organic–inorganic

conventional hard disk drives (HDDs).

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

Optical Functional Materials

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

We are continually engaged in the development of adhesives,

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

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

for this treatment after it was exhibited at Labelexpo Europe

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

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

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

26

LINTEC ANNUAL REPORT 2016

Moreover, our light diffusion films utilize proprietary designs

In release materials, we launched newly developed products

and can be specially customized to meet customer needs,

with the goal of acquiring new customers and expanding

offering a competitive advantage. We anticipate that these films

applications for our casting papers for carbon fiber composite

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

expand sales of these products as we develop new functional

range of environmentally friendly products and have beenadhesives and coatings.

pushing ahead with the development of a solvent-free release

Through these and other R&D activities, this segment

coating formula as we sequentially introduce products that are

incurred R&D expenses of ¥3.8 billion.

matched to customer needs to the market.

Sealing of OLED Material with High-Barrier Films

incurred R&D expenses of ¥1.4 billion.

Through these and other R&D activities, this segment

Water vapor prevented from entering through bases

Water vapor
prevented fromentering
through ends

High-barrier film
Adhesive

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

OLED material

therefore rank intellectual property, such as patents, trademarks,

High-barrier film

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

the Research & Development Division promotes strategic

In paper products, we launched white craft paper with superior

Companywide intellectual property activities. These activities

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

envelopes as it protects contents from rain and other sources

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

lifeline for a technology-centered company.

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

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

ately coated with adhesive when forming the paper into envelopes.

our business strategy, we aim to improve profitability based on

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

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

Number of Patents
2,000

1,699
1,600

1,436

1,200
800
400
Japan
0

2012

2013 2014 2015 2016
(Fiscal years ended March 31)

Overseas

White craft paper with superior water-repellent
capabilities

LINTEC ANNUAL REPORT 201627

:: THE BASE THAT SUPPORTS GROWTH

Human Resources

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

Respect for Diversity and Human Rights

Work-Life Balance

The LINTEC Group avoids discriminatory treatment of employ-

LINTEC is working to help employees balance their profes-

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

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

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

the areas of recruitment and employment, the Group complies

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

thoroughly with labor laws and regulations, including the prohi-

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

is pushing forward with the creation of workplace environments

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

match their working style to their lifestyle. This includes the

In addition, we have established a helpline through which

introduction of a planned vacation system to encourage

employees can consult with the General Affairs & Human

employees to take paid leave and a paid social contribution

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

have witnessed illegal behavior at the workplace. In the fiscal

2017, we will continue promoting the creation of environments

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

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

Employment of People with Disabilities

includes expanding the field of eligibility for shorter work hours

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

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

Employee Education

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

LINTEC has introduced Companywide rank-based training

to increase our employment ratio for people with disabilities

programs, which are human resource education programs

through measures such as the improvement of on-site facilities

tailored to an individual employee’s years of continuous service

as required.

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

Rehiring Systems

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

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

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

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

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

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

quality, the business continuity management system (BCMS),

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

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

Company’s intranet.

LINTEC ANNUAL REPORT 2016

Environmental Preservation

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

removed. We provide label materials for returnable bottles that

We have acquired global integrated certification under the ISO

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

14001 international standard for a total of 25 sites, including

taining superior water tolerance during normal use, these label

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

materials can be easily removed after bottles have been collected

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

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

Label materials for returnable bottles

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

Solar Insulation Film for Glass for Improving

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

Air-Conditioning Efficiency

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

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

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

amount of volatile organic compounds (VOCs), including organic

while significantly cutting the thermal energy from solar radiation

solvents, that are released into the atmosphere.

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

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

Window films

necessary for the labels applied to these containers to be easily

LINTEC ANNUAL REPORT 201629

:: THE BASE THAT SUPPORTS GROWTH

Partnerships

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

Thorough Quality Management

Fair Transactions

The LINTEC Group has acquired ISO 9001 certification, the

LINTEC has a basic policy for fair and transparent transactions

international standard for quality management systems, for its

based on the principle of free competition among suppliers,

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

all relevant laws and regulations and social norms. For major

9001 certification for other departments and acquiring integrated

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

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

stance management, administration and services, and CSR. We

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

periodically review our purchasing processes while maintaining

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

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

Green Procurement

systems that allow us to quickly collect information, analyze the

The LINTEC Group is committed to procurement that aims

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

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

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

The Group is engaged in building a system capable of either

regulation, we ask for suppliers’ understanding in conducting

continuing or soon restarting business operations even if struck

ingredient examinations to monitor for the presence of regulated

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

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

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

mented examinations to check for substances regulated by REACH*

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

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

ervation activities and thoroughly manage chemical substances.

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

30

LINTEC ANNUAL REPORT 2016

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

Social Contribution Activities

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

Activities at Each Work Site

LINTEC holds various support activities on an annual basis for

In addition to cleanup activities around each work site, LINTEC

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

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

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

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

and making donations of money and products for municipalities

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

occasion it was enjoyed by approximately 700 people, comprising

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

local area residents.

established among our employees as a social contribution

Furthermore, the professional baseball-viewing event we

activity that they can easily participate in.

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

Support for Earthquake Disaster Reconstruction

disabilities and their helpers, were invited to Tokyo Dome to

LINTEC is engaged in activities to support reconstruction

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

efforts after the Great East Japan Earthquake of March 2011.

tional 330 people consisting of elementary school students

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

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

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

the form of monetary donations collected from our employees,

practice and base running on the playing surface, an experience

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

Iwate Prefecture. These funds are being used to maintain the

These sports-related social contribution activities have earned

grounds at junior high schools within the city and purchase

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

instruments for school brass band clubs. Moreover, since 2014

fied as a Sports Promotion Company by Tokyo Prefecture.

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

LINTEC ANNUAL REPORT 201631

:: THE BASE THAT SUPPORTS GROWTH

Corporate Governance

Basic Philosophy

The Audit & Supervisory Committee meets once a month and conducts

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

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

transparency and promote corporate ethics, and to make prompt

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

directors’ duties, each and every Audit & Supervisory Committee

forcing corporate governance, we aim to further increase our corporate

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

value and joint profits with shareholders.

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

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

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

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

Committee system described in the Companies Act of Japan for its

Overview

organizational structure. The Company has placed directors that are

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

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

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

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

streamlining management even further. The Company has appointed

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

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

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

bers and four are outside directors.

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

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

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

we will take steps to develop an environment that facilitates improved

comprising executive officers (including directors serving concurrently)

Board of Directors’ effectiveness through such measures as early

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

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

General Meeting of Shareholders
Appointment /Dismissal

Appointment /Dismissal

Management decisions
Informing / Reporting

Board of Directors(Directors)

Auditing /Supervision

Representative Directors

Appointment /Dismissal

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

Cooperation

Management Meetings(Executive Officers)

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

Operational Execution Divisions

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

32

LINTEC ANNUAL REPORT 2016

Cooperation

Internal
Auditing

Informing

Audit Office

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

After assuming their position, new directors are provided training

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

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

reviews of and improvements to response measures as risks arise.

Once or twice a year, directors undergo training on contemporary

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

Company has established the Companywide Crisis Management

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

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

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

conducted through normal operations, and we strive to ensure that

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

expense to acquire the specialized insight required to perform

event of an emergency.

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

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

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

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

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

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

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

to separate management from execution and accelerate decision

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

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

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

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

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

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

Based on the Affiliate Company Operational Regulations, the Company

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

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

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

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

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

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

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

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

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

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

LINTEC ANNUAL REPORT 201633

:: THE BASE THAT SUPPORTS GROWTH

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

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

the duties of the Audit & Supervisory Committee, matters relating

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

relating to ensuring the effectiveness of Audit & Supervisory

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

Committee instructions with respect to said employees

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

To further raise the effectiveness of Audit & Supervisory Committee

Committee members deem that independent outside experts (such as

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

the Company has established the Audit & Supervisory Committee

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

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

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

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

Supervisory Committee’s duties.

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

serving as Audit & Supervisory Committee members. With regard

With a view to ensuring a system so that Company information

to said instructions and orders received from Audit & Supervisory

reaches the Audit & Supervisory Committee unhindered, the Company

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

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

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

Supervisory Committee members) and from employees but also from

Committee secretariat staff do not receive instructions and orders

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

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

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

34

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

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

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

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

& Supervisory Committee will be able to directly demand business-

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

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

awareness with this regard among all directors and employees.

Global Internal Reporting System Regulations, the Company has

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

other specialists to combat such requests. Should we be approached

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

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

a quick, organization-wide response.

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

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

Supervisory Committee members

Regulations as well as a risk management system for minimizing the

When an Audit & Supervisory Committee member invoices the Company

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

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

LINTEC ANNUAL REPORT 2016

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

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

5. Limited Liability Contracts

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

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

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

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

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

and Kanako Osawa—that limits liability for compensation for damages

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

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

Company shares outstanding) on March 31, 2016.

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

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

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

1. Internal Audits

an act of large-scale purchase.

The Audit Office regularly implements internal audits of divisions,

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

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

that operational execution processes and results comply with the law

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

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

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

are exchanged on the results of the audits.

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

2. Audit & Supervisory Committee Audits

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

The Company’s Audit & Supervisory Committee comprises four directors

outstanding) on March 31, 2016.

serving as Audit & Supervisory Committee members, of whom three

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

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

the independent auditor, receives the necessary reports, and conducts

large-scale purchase.

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

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

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

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

opinions and participating in resolutions through their voting rights.

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

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

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

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

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

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

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

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

Outside Directors

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

The Company has selected Shinichi Sato, Toru Nozawa, Satoshi

an Audit & Supervisory Committee member.

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

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

Supervisory Committee members.

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

LINTEC ANNUAL REPORT 201635

:: THE BASE THAT SUPPORTS GROWTH

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

Remuneration of Corporate Officers

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

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

Corporate officer type

Total
remuneration

Total remuneration by type(Millions of yen)

Number ofpeoplereceiving
Bonusesremuneration

Basic
remuneration

Stock
options

462

340

21

99

14

14

14

―

―

1

Audit & Supervisory
Board members

9

9

―

―

2

Outside officers

16

16

―

―

5

(Millions of yen)

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

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

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

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

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

tions to the director shareholding association		

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

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

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

36

LINTEC ANNUAL REPORT 2016

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

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

CEO when necessary.

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

basis and meeting with members of senior management as

and decided by the Audit & Supervisory Committee in accordance

appropriate to share necessary information.

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

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

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

The Company views the establishment and maintenance of stable,

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

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

when deemed appropriate based on a comprehensive evaluation of

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

expand the range of information provided to domestic and overseas

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

coordination with the business partner through holdings is judged as

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

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

feedback from a wide range of shareholders and other investors

In exercising voting rights, the Company respects the management

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

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

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

Shareholder Interactions

divisions via quarterly business reports at the Board of Directors’

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

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

system and advances proactive initiatives based on the following

practice stringent management of information in accordance with

policies to facilitate this endeavor.

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

Company’s various IR activities, including individual meetings with

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

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

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

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

LINTEC ANNUAL REPORT 201637

:: THE BASE THAT SUPPORTS GROWTH

Corporate Officers
As of June 22, 2016

Representative Director, Chairman and CEO

Directors, Managing Executive Officers

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

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

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

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

Representative Director, President, CEO and COO

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

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

Director, Vice President Executive Officer, CFO

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

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

Director, Vice President Executive Officer

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

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

Director, Senior Managing Executive Officer

Director, Executive Officer

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

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

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

38

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

LINTEC ANNUAL REPORT 2016

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

Director, Executive Officer

Outside Directors / Audit & Supervisory Committee Members

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

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

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

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

Outside Director

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

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

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

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

Director / Audit & Supervisory Committee Member

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

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

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

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

Managing Executive Officers

Executive Officers

Toshikazu Yamada

Takehiko Wakasa

Shigeru Uematsu

Tatsuya Tsukida

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

Plant Manager, Chiba Plant,
Production Div.

General Manager, Public Relations Office

General Manager, Research &Development Div. and Research Center

Koichi Kimura

Junichi Nishikawa

Yutaka Iwasaki

Yohei Hoshikawa

General Manager,
Quality Assurance & Environmental
Protection Div.

Plant Manager, Kumagaya Plant,
Production Div.

General Manager, Converted Products
Operations, Business Administration Div.

General Manager,
Corporate Strategic Office

Toru Onishi

Masahiro Oshima

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

Plant Manager, Agatsuma Plant,
Production Div.

Norio Murata

Sumio Morimoto

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

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

LINTEC ANNUAL REPORT 201639