LINTECANNUALREPORT2015
For the year ended
March 31, 2015

ACCELERATINGGROWTH
LINTEC

Contents

Editorial Policy

1 COVER STORYThis report is meant to help shareholders and other investors– 1 Company Motto & Mission Statement

understand the LINTEC Group and its quest to achieve sustainable– 2 LINTEC’s History

growth and contribute to the further development of society as a whole.

– 4 Business Overview

Based on the International Integrated Reporting Framework released– 6 LINTEC’s Value Creationby the International Integrated Reporting Council in December 2013, in

8 Performance Highlights
10 MANAGEMENT STRATEGY– 10 From the President
16 BUSINESS ACTIVITIES SUPPORTING
VALUE CREATION

addition to performance and ﬁnancial information, this report also introduces the R&D capabilities, human resources, and other “intangible
assets” accumulated by the LINTEC Group that are of the variety notlisted on the ﬁnancial statements.
Information that could not be contained within this report is available on
the following websites.

– 16 R&D Activities and Intellectual Property– 18 Human Resources≥ IR Website– 19 Partnerships

http://www.lintec-global.com/ir/– 20 Social Contribution Activities– 21 Environmental Preservation
22 OUR GROWTH FOUNDATION– 22 Corporate Governance– 27 CSR Basic Approaches and Promotion System– 28 Corporate Ofﬁcers
30 FINANCIAL SECTION– 31 Management’s Discussion and Analysis– 33 Operating Risks≥ CSR Website– 34 Financial Summary

http://www.lintec-global.com/csr/– 36 Consolidated Balance Sheet– 38 Consolidated Statement of Income– 38 Consolidated Statement of Comprehensive Income– 39 Consolidated Statement of Changes in Net Assets– 40 Consolidated Statement of Cash Flows– 41 Notes to Consolidated Financial Statements– 58 Management’s Report on Internal Control
over Financial Reporting– 59 Report of Independent Auditors
61 Investor Information
REPORTING PERIODThis report covers the period between April 1, 2014 and March 31, 2015.
However, some of the information includes content from April 2015 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.

LINTEC ANNUAL REPORT 2015≥ COVER STORY

Company Motto & Mission Statement
As a leading company in the adhesive products and ﬁne and specialty papers ﬁelds, LINTEC
has developed a diverse range of products and achieved sustainable growth. In deference to
our company motto, “Sincerity and Creativity,” we strive to maintain integrity toward eachand every one of our stakeholders and will continue to engage in new challenges with a passion for innovation. These principles represent our foundation as a manufacturing company
and we continue to contribute to the development of society by developing products thatmeet the needs of everyone.
“Linking your dreams” – LINTEC utilizes its unique technologies to link the countless dreamsof people across the world and give form to them. We look forward to your ongoing support.
≥ Company Motto

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

For tomorrow we build today
Company
Motto

Sincerity andCreativity

LINTEC WAY
In the year ended March 31, 2015, the LINTEC Group established “LINTEC WAY” as a

MissionStatement

guidepost to encourage all of its employees in continuing to maintain a uniﬁed outlook

Five Rules ofSincerity

and aspiring toward sustainable growth. “LINTEC WAY” comprises 10 principles, which

Alwaysbe sincere.
Faithfulness opens
people’s minds.
Please people.
Be a giver.
Care about colleagues
and family.

represent our cherished sense of values, to support the company motto, “Sincerity
and Creativity,” and highlight the ideals that employees should strive to embody. We
continue to promote the proliferation and understanding of LINTEC WAY by holding
CSR study meetings at Group companies both inside and outside Japan.

Five Rules ofCreativity
Be committed
until you succeed.
Be proud of
being unique.
Be resilient and takeadvantage of changes.
Think globally.
Look for connections topotential everywhere

COMPLIANCE GUIDELINES

LINTEC ANNUAL REPORT 20151≥ COVER STORYLINTEC’s History
Over the more than 80 years since its founding, LINTEC has continued to grow its businessby adhering to a customer-ﬁrst mindset and developing original products, all while acting inaccordance with its company motto, “Sincerity and Creativity.”
1920s to 60s

1970s to 80s

Stage of Creation – Stage of Business Base Building

Stage of Entry into Growth Businesses

FUJI SHOKAI was established in 1927 as Japan’s ﬁrst manufacturer ofIn the early 1970s, we started manufacturing and selling labelinggummed tape for packaging. Later, in 1934, it was reorganized to form

machines and label printing machines. It was also at this time that

FUJI SHIKO CORPORATION, which it could be said represented the start

we expanded operations into China. In the late 1970s, we developedof the Company. At that time, demand was rising rapidly for cardboard

a colored adhesive ﬁlm for use in body stripe stickers on motorcycles,

boxes to be used as alternatives for wooden boxes for transporting foodsin response to the rapid growth in domestic motorcycle sales. In

and other goods. This trend fueled substantial growth in demand for

addition, there was a rapid increase in the need for ﬁlms used forgummed tape for sealing these boxes. Entering into the 1950s, we began

outdoor sign, and we also began to expand our business in theto actively push forward with the establishment of sales bases geared

motorcycle, automobile and interior and exterior decorative ﬁelds.

toward strengthening our business development in major Japanese cities.

In 1984, the company name was changed to FSK CORPORATION. Then,

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

in 1986 we developed an ultraviolet (UV) curable dicing tape that allows

and later advanced into the ﬁeld of adhesive ﬁlms. This is when wefor adhesive strength to be controlled by irradiation of UV rays, making

constructed the foundations for our mainstay businesses of today.

our entry into the semiconductor ﬁeld. The development of this productIn addition, in 1962 we developed an automatic packaging machinecaused a revolution in the semiconductor industry and also represents(cardboard box automatic sealing machine) manufacturing department,

the original source of our competitiveness in this ﬁeld. It was during thisand began to provide of a combination of adhesive materials andperiod that the Company steadily expanded its presence in the industry,

related equipment, establishing a business style of comprehensively

being listed on the Second Section of the Tokyo Stock Exchange in 1986

meeting customer needs that we continue to utilize today.

and then being approved for listing on the First Section in 1989.

Apr. 1927 FUJI SHOKAI established in Sugamo, Tokyo
Started production and sales of gummed tape for packaging

Mar. 1972 Started production and sales of labeling machines
Aug. 1973 Developed “A-100 type” label printing machine, incorporating newtechnologies, and started production and sales of label printing machines

Gummed tape

Aug. 1931 FUJI SHOKAI reorganized to establish FUJI GOMEI KAISHA, andhead ofﬁce and head factory relocated to Itabashi, Tokyo
Oct. 1934 FUJI GOMEI KAISHA reorganized to establish FUJI SHIKO CORPORATION“A-100 type” label printing machine

1974 Started sales of label printing machines and adhesive products in China
Oct. 1984 Company name was changed to FSK CORPORATION
Jul. 1986 Listed on Second Section of Tokyo Stock Exchange
1986 Developed UV-curable dicing tape and made full-scale entry into
semiconductor-related businessTime of establishment

Sep. 1950 Osaka Ofﬁce (currently Osaka Branch) opened, nationwide expansionof sales and establishment of large-scale bases commenced
Apr. 1953 Established laboratory in head ofﬁce in Itabashi, and started full-scale
development of technologies and products
Mar. 1960 Started production and sales of adhesive papers for seals andlabels; later, also started production and sales of adhesive ﬁlms
Mar. 1962 Established automatic packaging machine manufacturing department,
and started sales of system combined with gummed tape for packaging
Oct. 1968 Transferred laboratory to Warabi Plant in Saitama Prefecture, and started
development of new products taking advantage of our core technologies

2

LINTEC ANNUAL REPORT 2015

UV-curable dicing tape

Sep. 1987 FSK OF AMERICA, INC. (currently LINTEC USA HOLDING, INC.),established and MADICO, INC., a U.S. window ﬁlms manufacturer,
became a subsidiary
Mar. 1989 Approved for listing on First Section of Tokyo Stock Exchange

1990s

2000s to today

Second Stage of Creation

Stage of Growth Acceleration

In April 1990, FSK merged with SHIKOKU PAPER CO., LTD., a supplier

The globalization of LINTEC’s business accelerated at the turn ofof release papers and other items, and SOHKEN KAKO CO., LTD.,the century. Based on our policy of manufacturing products closer

another manufacturer of adhesive materials, giving birth to LINTEC

to customers to ensure stable supplies through local production, we

Corporation and representing a new start. Through this merger,

established new manufacturing bases in China, Taiwan, South Korea,

we have expanded our business into the specialty papers, release

Malaysia, and Thailand. At the same time, we took steps to reinforce

papers and ﬁlms, which has enabled us to establish an integrated

manufacturing and sales systems, such as expanding our network ofadhesive product manufacturing system spanning from upstream

sales bases that possess warehouses and slitting facilities. Recently,

areas (base paper for release papers) to downstream areas (adhe-

we have established a regional headquarter in Singapore to

sive products). The name LINTEC was chosen as a combination ofstrengthen competitiveness in the rapidly growing Southeast Asian“linkage” and “technology” to symbolize our commitment towardand Indian markets.

linking people with technology to create new value. This spirit continues to live on in the Company today.

Moreover, we have established an R&D base of LINTEC OF AMERICA,
INC., at Dallas in the United States and are pushing forward with the

In 1991, we entered into the ﬁeld of optically functional ﬁlms forpractical implementation of new-generation materials such as carbon

liquid crystal displays (LCDs). Later, we established local manufac-

nanotubes. In 2015, we also established the Advanced Technology

turing bases and sales bases in Indonesia and Singapore, which still

Building adjacent to our existing research center, and we are working

play the main role in our business in Southeast Asia and India. In

toward increasing the speed of product development and developing

this manner, we advanced the globalization of our business.

innovative new products.

Apr. 1990 Merged with SHIKOKU PAPER CO., LTD., and SOHKEN KAKO CO.,LTD., and company name changed to LINTEC Corporation
1991 Made full-scale entry into LCD-related business

Apr. 2000 LINTEC INDUSTRIES (MALAYSIA) SDN. BHD. established as
manufacturing base for electronics-related products
Jun. 2002 LINTEC (SUZHOU) TECH CORPORATION in China established as
manufacturing base for adhesive products and converted products

Optically functional ﬁlms for LCDs

Oct. 1993 LINTEC (TIANJIN) INDUSTRY CO., LTD., established as manufacturingbase of label printing machines and sales base of adhesive products
Feb. 1994 Singapore Ofﬁce opened
May 1994 PT. LINTEC INDONESIA established as manufacturing base ofadhesive products

LINTEC (SUZHOU)TECH CORPORATION

Aug. 2002 LINTEC SPECIALITY FILMS (KOREA), INC., established as
manufacturing base for optical products
Aug. 2003 LINTEC SPECIALITY FILMS (TAIWAN), INC., established as
manufacturing base for optical products
Sep. 2004 LINTEC KOREA, INC., established as manufacturing base for electronicsrelated products

PT. LINTEC INDONESIA

Apr. 1995 Singapore sales ofﬁce locally incorporated and LINTEC SINGAPOREPRIVATE LIMITED establishedApr. 1995 LINTEC EUROPE B.V. in the Netherlands establishedDec. 1995 Research Center in Saitama Prefecture built
Mar. 1999 LINTEC INDUSTRIES (SARAWAK) SDN. BHD. in Malaysia establishedas manufacturing base for electronics-related products

LINTEC KOREA, INC.

Jun. 2011 LINTEC (THAILAND) CO., LTD., established as manufacturing basefor adhesive products
Jan. 2015 LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATELIMITED in Singapore establishedMay 2015 Advanced Technology Building constructed in Saitama Prefecture

LINTEC ANNUAL REPORT 20153≥ COVER STORY

Business Overview
LINTEC responds to social needs by developing its business in a wide range of ﬁelds.

Share of Net Sales

Share of Operating Income

18.0%

17.0%

23.6%

FY2015/3

FY2015/3

Net Sales

Operating Income

41.9%¥207.3 billion¥16.9 billion

40.1%

59.4%

Printing and Industrial Materials ProductsElectronic and Optical Products

Paper and Converted Products

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

≥ Printing and Industrial Materials ProductsThis segment consists of Printing & variable information products operations and Industrial &material operations.
In our Printing & variable information products operations, we conduct the manufactureand sale of adhesive papers and ﬁlms for seals and labels, which are the LINTEC Group’s
mainstay products. Our adhesive ﬁlms perform particularly well, boasting a share of approximately 60% of the domestic market. We are also targeting the expansion of our share in suchoverseas markets as China and Southeast Asia through the enhancement of production andsales bases in these markets.
In our Industrial & material operations, we deal in a wide variety of products, including
automobile-use adhesive products, tapes for bonding components in mobile devices andothers, label system-related equipment, adhesive sheets for outdoor signs and interiorﬁnishing, and even window ﬁlms for saving electricity and glass shatter-prooﬁng purposes
for which demand has been growing.
Printing & Variable Information
Products Operations
Main Products• Adhesive papers and ﬁlms for seals
and labels• Label printing machines

4

LINTEC ANNUAL REPORT 2015

Industrial & Material Operations
Main Products• Automobile-use adhesive products• Industrial-use adhesive tapes• Barcode printers• Labeling machines• Window ﬁlms
• Films for outdoor signs and advertising• Interior ﬁnishing mounting sheetsP. 31
Management’s Discussion and Analysis
Please see pages 31-32.

≥ Electronic and Optical ProductsThis segment consists of Advanced materials operations and Optical products operations.
In our Advanced materials operations, we develop and provide such products as specialized
adhesive tapes and related equipment essential in semiconductor manufacturing and mounting
processes as well as coated ﬁlms for multilayer ceramic capacitor (MLCC) production andtouch screen-related products.
In our Optical products operations, we conduct adhesive processing for optical functionalﬁlms, including polarizing ﬁlms and retardation ﬁlms used to make LCDs; surface improvement processing for polarizing ﬁlms, such as antiglare hard coat processing, which protects
ﬁlms from scratches and reduces reﬂectivity; and the manufacturing of protective ﬁlms forpolarizing ﬁlms.
Advanced Materials Operations

Optical Products Operations

Main Products• Semiconductor-related adhesive tapes
and equipment• Coated ﬁlms for MLCC production• Touch screen-related products

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

≥ Paper and Converted ProductsThis segment consists of Fine & specialty paper products operations and Converted
products operations.
In our Fine & specialty paper products operations, we conduct the manufacture and sale ofcolor papers for envelopes and colored construction papers, products for which LINTEC
holds the leading share in domestic markets; lint-free papers that are used in places such as
clean rooms that cause hardly any dust even when torn; oil resistant papers for food packaging;high-grade printing papers with special textures; and high-grade papers for paper products
used for business cards and postcards.
In our Converted products operations, we provide release papers and ﬁlms that protect theadhesive surfaces of a variety of adhesive products. Additionally, we produce casting papers
that are used as patterning papers for placing designs on synthetic leather. We also manufacture casting papers for carbon ﬁber composite materials for which demand is expected torise in conjunction with increased usage in aircraft.

Fine & Specialty Paper Products Operations

Converted Products Operations

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

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

LINTEC ANNUAL REPORT 20155≥ COVER STORYLINTEC’s Value Creation
Since its founding, the LINTEC Group has amassed numerous strengths. These strengths
serve as indispensable assets to our business activities, and have been the driving force
in creating various high-value-added products in response to a wide range of social needs.
Going forward, the LINTEC Group will pursue sustainable growth by contributing to thedevelopment of society through the creation of new value.
SOLID
FINANCIAL BASE
Going forward, LINTEC will take fulladvantage of its solid ﬁnancial base,characterized by an equity ratio of
more than 70%, to conduct aggressive
capital investments and
M&A activities.

COMPREHENSIVEMANUFACTURING
AND SALES SYSTEMSIN JAPAN AND OVERSEAS

P. 10

P. 30

We are committed to reducing theenvironmental impact of manufacturing activities and developing environmentally friendly products.

LINTEC is further enhancing its
manufacturing and sales systems inJapan and overseas.

P. 10

ECO-FRIENDLY
BUSINESS ACTIVITIES

P. 21

P. 61

LINTEC’s Amassed
Strengths

LONGACCUMULATEDTECHNOLOGICAL PROWESSSTRONG BONDS
OF TRUSTWITH STAKEHOLDERS

By fusing at a high level
the core technologies that we haveaccumulated to date, we are creating
original new products.

LINTEC strives to prosper together
with its customers and suppliers
and to coexist in harmony withlocal societies.

P. 16

DIVERSEHUMAN RESOURCES ANDCORPORATE CULTURE
Our diverse human resources locatedacross the globe all share the spirit
encapsulated in the company motto,“Sincerity and Creativity,” and havedeep-rooted drive for innovation.

P. 18

6

LINTEC ANNUAL REPORT 2015

P. 19

P. 20

With the assets we have cultivated over the years, we willfurther promote our business activities to achieve our targets byaccelerating growth.
Advancing businessactivities by leveraging
amassed strengths

Pushing
forward withthe medium-termbusiness plan,

Growing as a company and contributing
to the development of society
Building upon strengths
to fuel future growthto achieve
further growth

LINTEC ANNUAL REPORT 20157