CORPORATE VALUE INITIATIVES

LINTEC’s Value Creation

Three Divisions
Working as One
As a manufacturer, LINTEC conducts its business primarily through the Sales
Division, which interfaces with customers on a day-to-day basis; theResearch & Development Division, which creates new technologies and products;
and the Production Division, which is responsible for the stable supply of high-quality
products. The three divisions work in unison within all processes, from development
to sales, enabling LINTEC to create original value and provide products that makecustomers happy. Research personnel accompany sales staff to customers to get a
precise picture of customer requirements, while sales and research staff visit
production sites to consult on solutions for particular issues that arise.

20

LINTEC ANNUAL
ANNUALREPORTREPORT2017
2017

SalesLINTEC’s six business operations
produce a wide diversity of products. Materials and equipment
are combined to offer comprehensive solutions to issues facedby customers.

Customer

Research and Development

Production

Original technologies developed over many
years are fused at sophisticated levels in thedevelopment of groundbreaking new products. Market-dialogue R&D, where researchstaff communicate directly with the customer,
is one of LINTEC’s strengths.

State-of-the-art production facilities,
original production technology, andrigorous supply chain management
are deployed to supply a steadystream of safe and high-quality
products to customers.

Human Resources
Our employees lie at the heart of our concerted business activities.
LINTEC seeks to foster human resources, which it regards as an important asset,
and provide them with a congenial working environment.

LINTEC ANNUAL REPORT 201721

CORPORATE VALUE INITIATIVESSales
The Business Administration Division, which is responsible for sales, provides customer coverage throughout Japan
from 11 offices. The Iidabashi office is the largest, with approximately 300 staff in Tokyo, and the network also includes
Osaka and Nagoya. The LINTEC Group has more than 50 production and sales offices in Asia, Europe, and North
America, supplying LINTEC products worldwide.
The Group’s business is divided into six operations, each of which conducts sales activities based on its own strategies. These operations are classified under three segments—Printing and Industrial Materials Products, Electronic
and Optical Products, and Paper and Converted Products—in accordance with product, technology, and market.

Printing & Variable Information Products Operations

Printing and Industrial Materials Products
Industrial & Material Operations

Advanced Materials Operations

Electronic and Optical Products
Optical Products Operations

Fine & Specialty Paper Products Operations

Paper and Converted Products
Converted Products Operations

22

LINTEC ANNUAL REPORT 2017

Share of Net Sales
Paper andConverted Products

Share of Operating Income
Printing andIndustrial Materials
Products¥ 37.1 billion¥ 85.7 billion

18.0 %Net Sales

41.6 %

Paper andConverted Products

Printing andIndustrial Materials
Products¥ 5.8 billion¥ 1.7 billion

34.7 %

Operating Income¥ 206.0 billion¥ 16.6 billion

Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2017

Electronic and
Optical ProductsElectronic and
Optical Products¥ 83.2 billion¥ 9.2 billion

40.4 %

10.1 %

55.2 %

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

A Message from theGeneral Manager

Makoto Hattori
Director, Managing Executive Officer
General Manager, Business Administration Div.

I became General Manager in April 2017 and feel a strong sensematerials, technology, and services originate from Japan. Japanof responsibility for achieving the goals of the medium-term

therefore remains an important market that merits continued

business plan LIP-2019. The numerical targets of the plan’s final

effort. In Asia, the subsidiaries that have been put in place inyear were compiled on a bottom-up basis so that if each opera-

Southeast Asia and India in recent years are not yet functioning

tion reaches its targets the Group will too. Having failed to reachat full strength, and we will be reorganizing the network in accor-

the targets of the previous medium-term business plan, I intend

dance with changes in market conditions. In Europe and Northto put a structure in place for thorough analysis of the causes if

America, we will aim to expand sales in Printing and Industrial

our performance deviates from target and rapid remedial action.

Materials Products in conjunction with the three companies that“Strengthening of regional strategy” is a key LIP-2019 initia-

became subsidiaries in 2016. In all markets, the most important

tive. It requires us to think about Japan, Asia, Europe, and North

thing is to understand the true demands of the markets, and to

America, for example, as individual markets. This is not a Japan /this end we will take steps to strengthen our communication

overseas divide. Although Japan is said to be a mature market,

with customers.

many of our businesses have a domestic emphasis and most

LINTEC ANNUAL REPORT 201723

CORPORATE VALUE INITIATIVES

Printing and Industrial Materials Products

Printing & Variable Information Products Operations
These operations manufacture and sell the Group’s mainstay adhesive papers and films for labels. In particular, they have an approximately 60% share of Japan’s adhesive film market. Overseas, a manufacturing and sales network is being expanded in China andSoutheast Asia, and in 2016 business expansion also included making U.S. company MACTAC AMERICAS, LLC a LINTEC subsidiary.

Main Products• Adhesive papers and films
for labels

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

55.1 billion
26.7%

¥

Net Sales¥ 206.0 billion¥

95.5 billion

55.1

Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
The Japanese market for adhesive papers and films for labels is maturing, but we will aim forfurther growth in share by stepping up sales activities tailored to specific regions. Overseas, in thefiscal year ended March 31, 2017, our business was impacted heavily by the economic slowdown in
China and strike action at PT. LINTEC INDONESIA. We plan to review our sales strategies forSoutheast Asia, with LINTEC ASIA PACIFIC playing the central role, while also launching new
products that use local materials. In Europe, we will be aiming to expand sales by exhibiting at theMasaaki Yoshitake
Executive Officer
General Manager, Printing &Variable Information Products
Operations, Business
Administration Div.

24

LINTEC ANNUAL REPORT 2017

world’s largest label event, Labelexpo Europe 2017, in autumn in Belgium, and drawing on themarketing strengths of U.K. company LINTEC GRAPHIC FILMS. In the U.S., we will use MACTACAMERICAS’ sales channels to market LINTEC products while also rolling out MACTAC products inSoutheast Asia.

Industrial & Material Operations
These operations provide an extremely wide range of products, from window films with various functions such as cutting out heatand ultra-violet light when they are attached to building and automobile windows through to automobile-use adhesive products forvehicle body decoration and protection, industrial-use adhesive tapes for bonding components in mobile and other devices,­barcode printers used in production lines and distribution, labeling machines for automated labeling, films for outdoor signs andadvertising, and interior finishing mounting sheets.

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

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

30.6 billion
14.9%¥

Net Sales¥

30.6

41.5 billion¥ 206.0 billion
Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
A major topic for Industrial & Material Operations is strengthening our overseas business foundation
centered on window films and motorcycle- and automobile-use adhesive products. We have established a good reputation for product quality overseas, and now we need to collaborate with LINTECASIA PACIFIC and the three U.S. and European companies that became subsidiaries in 2016 on fleshing out our sales network and raising brand awareness. Training globally oriented staff and developing
products adapted to local requirements are pressing tasks in this regard. Fundamental business manShuji Morikawa
Director, Executive Officer
General Manager, Industrial &Material Operations,
Business Administration Div.

agement rationalization has been announced for MADICO in the U.S., which is still performing weakly,
and we will also work with our manufacturing bases in Thailand and Suzhou, China to build an optimum
production and sales structure for window films and other products.
In Japan we will be focusing on distribution and automotive applications, and we will also step up oursales promotion activities for signs and graphic sheets in anticipation of growth in demand.

LINTEC ANNUAL REPORT 201725

CORPORATE VALUE INITIATIVESElectronic and Optical Products

Advanced Materials Operations
We are building a unique position in the electronics industry with products such as specialized adhesive tapes that are essential insemiconductor chip manufacturing and mounting processes, and we also make equipment that leverages these tapes’ special
features fully. In addition, we produce release films that are crucial in the production of multilayer ceramic capacitors, which aretiny electronic components. The development of new, next-generation sheet materials is another of our focuses.

Main Products• Semiconductor-related adhesive
tapes and equipment• Multilayer ceramic
capacitor-related tapes

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

43.0 billion
20.9%
¥

43.0

¥

53.0 billion

Net Sales¥ 206.0 billion
Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
The electronics industry is vibrant but products that are selling well now may not do so in the future. We
constantly strives to anticipate needs so that we can supply our customers with products that meettheir requirements just when they need them. Demand for quality in our products continues to rise year
after year as end products increase in sophistication and capacity while becoming thinner. We will bestrengthening our ties with suppliers as we strive for a stable supply of high-quality products.
We think that demand for semiconductors and electronic components will rise significantly going
Takeshi Kaiya
Executive Officer
General Manager, Advanced
Materials Operations,
Business Administration Div.

26

LINTEC ANNUAL REPORT 2017

forward due to the growth of the Internet of Things (IoT) and the introduction of next-generation,
high-speed communications. We will aim to meet our targets by developing next-generation
products, such as optically clear adhesive sheets for automobile panels, as a fourth pillar of operations to stand alongside our established pillars of semiconductor-related adhesive tapes and equipment and multilayer ceramic capacitor-related tapes.

Optical Products Operations
We deploy our development technologies for special adhesives and surface coating materials and precision coating technology
and use cutting-edge production facilities to provide adhesive processing for optically functional films such as polarizing films andretardation films that are used in LCDs. We also undertake surface improvement processing for polarizing films, such as antiglare
hard coat processing, which protects films from scratches and reduces reflectivity.

Main Products• Polarizing films and retardation films(adhesive processing)• Polarizing films(surface improvement processing)

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

40.2 billion
19.5%¥

40.2 ¥ 40.0 billion
Net Sales¥ 206.0 billion
Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
The optical display market is in a period of major change as organic light-emitting diode (OLED)
displays become more widespread and Chinese LCD panel makers emerge. To survive this difficult
period successfully, we believe it is important to listen to our customers and then think and act.
While the market shift from LCDs to OLED displays is gradually progressing, the market size forthese displays is still small, meaning that they do not have a significant impact on our businessat the moment. However, we must pay close attention to the level of quality that will be demanded
Shinji Ito
General Manager, Optical
Products Operations,
Business Administration Div.

in the future and to how volume and cost will change. We will continue to strengthen ties with ourGroup customer, an optical functional film manufacturer, as we seek to supply high-quality products
utilizing the cutting-edge facilities that started up in 2016 and build an optimal global production
structure for market change.

LINTEC ANNUAL REPORT 201727

CORPORATE VALUE INITIATIVES

Paper and Converted Products

Fine & Specialty Paper Products Operations
We have the leading share in the Japanese market for color papers for envelopes and colored construction papers. We also manufacture and sell specialty papers including oil resistant papers used in food packaging, dust-free papers for use in places such as
clean rooms, high-grade printing papers with special textures, and high-grade papers for paper products used in business cards andpostcards. Our business is currently centered on Japan but we will be undertaking sales activities with an eye on overseas markets.

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

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

16.5 billion
8.0%¥

Net Sales

16.5 ¥ 18.0 billion¥ 206.0 billion
Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
Our market is shrinking as the paperless trend gains traction, and to secure earnings in thisenvironment LINTEC’s medium-term business plan LIP-2019 calls for new product launches tosustain and expand current business in Japan combined with proactive development of newmarkets, including overseas markets.
The market environment is harsh for our mainstay color papers for envelopes, but sales of products that prevent the contents from being seen from the outside are growing steadily. Our new waterToshimi Sugaya
Executive Officer
General Manager, Fine &Specialty Paper Products
Operations, Business
Administration Div.

28

LINTEC ANNUAL REPORT 2017

repellent products have been well received and we want to continue developing and offering suchhigh-value-added products. We will work to expand sales of special function papers, which represent
one of our fortes, in overseas markets, where these papers have yet to fully penetrate.

Converted Products Operations
We endow papers and films with special functions, such as releasability and resistance to water, heat, and abrasion to create
release papers and films that protect the adhesive surfaces of a variety of adhesive products. We also produce casting papers thatare used as patterning papers for placing designs on synthetic leather and casting papers used in the manufacture of carbon fiber
composite material sheets from fibers.

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

Sales
Results of Fiscal Year 2017

Goal for Fiscal Year 2020

20.6 billion
10.0%¥

20.6 ¥ 22.0 billion
Net Sales¥ 206.0 billion
Fiscal year ended
March 31, 2017

FY2017

FY2020 (Forecast)(Fiscal years ended / ending March 31)

Business Strategies
Our business environment is extremely severe due to a variety of factors. These include intensifying price competition due to globalization, the emergence of Chinese manufacturers for casting
papers for synthetic leather, and the temporary decline in demand for passenger planes that use
carbon fiber composite materials brought about by lower crude oil prices.
Amid these conditions, we will strive to increase profits not by engaging in price competition to
respond to the cheap prices of rival companies but rather by offering differentiated quality and services
Yutaka Iwasaki
Executive Officer
General Manager, Converted
Products Operations,
Business Administration Div.

to our customers. To this end, we need to promote our business at an unrivaled pace in terms of everything from launching new products to improving quality and responding to customer inquiries.
Going forward, we will make concerted efforts in product development and improvement focusing
on various key issues, such as developing casting papers for synthetic leather using a brand-new
embossing method, enhancing the durability of casting papers for carbon fiber composite materials,
and increasing the number of solvent-free release papers to respond to the environment.

LINTEC ANNUAL REPORT 201729

CORPORATE VALUE INITIATIVES

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

Adhesive applications
Surface improvement

Through the development of adhesives and substrates and the com-Through the chemical and physicalbination of related technologies, we

processing of the surfaces of paper

are expanding the range of ﬁelds inand ﬁlm, we are enhancing their

which the basic functions of adhe-characteristics and adding new

sive products, primarily adhesion

functionality.

and release, are utilized.

Four CoreTechnologies
System development

Specialty papers andrelease materials
production

Through the systemization of

We use original papermaking

machinery and equipment andbuilding high-level systems thatdraw on the distinctive characteristics of materials, we are providing
advanced solutions.

technologies and coating, impregnation, and laminating technologies to develop special function
papers and high-value-added
materials that transcend traditional
concepts of paper.

30

Research and Development Structurethat closely resemble factory mass production facilities, in 2015,

The Research & Development Division’s research center has notprovided a structure for smooth flow from R&D to mass produc-

only state-of-the-art research facilities but also a clean room withtion. Approximately 200 research personnel are at work in eightthe same semiconductor-related equipment that is found in thelaboratories and other departments. In addition, the Nano-

production environment of our customers. The addition of the

Science & Technology Center in the U.S. state of Texas is engaged

Advanced Technology Building, with its large-scale pilot coaters

in research in new fields outside our current technology domain.

LINTEC ANNUAL REPORT 2017

R&D Achievements
In the fiscal year under review, R&D expenses incurred by the Group amounted to ¥7.6 billion. The following is an overview of theprincipal R&D activities conducted by each operational segment.
Printing and Industrial Materials ProductsElectronic and Optical Products

Printing and Variable Information Materials

Semiconductor-Related Materials

We continued with our development of functional label materials

Semiconductor packages with flip chips connected by bumps

designed to meet our customers’ required specifications with(protruding electrodes on the circuit) have come into widespreadthe aim of supplying label materials for a diverse range of appli-

use as electronic devices such as smartphones have become

cations precisely when customers need them. We developed athinner and achieved higher performance. We enhanced ourlabel material suitable for cold environments as low as minus

lineup with back grinding tape that protects wafer surfaces

196°C in medical and pharmaceutical fields. It is intended forwithin production processes and can be used with bumps of any

displays and management labels on blood and cell samples andheight. Meanwhile, we also launched a new backside coating

vaccines that are preserved in a frozen state. For displays andtape for flip chips that supports manufacturing processes.

process management in the distribution, medical and pharma-

Functional tapes are essential in the production of intelligent

ceutical sectors, we developed asensors and 3D NAND flash memories that use thin wafers, andgeneral-use new label material thatby bringing such products to market, we play a part in the social

allows for variable information print-

development of IoT.

ing and publishing from small lots.
This new product features tolerabilityof heat, humidity, and alcohol and

Optical Functional Materials

supports direct thermal printers.

We are engaging in the development of adhesives for opticaldisplays. We developed a vehicle display adhesive that preventsthe formation of bubbles on plastic and is resistant to heat,humidity, and bleaching; an adhesive that inhibits corrosion ofCommercial and Industrial Materials

indium tin oxide and other materials used in touch sensors while

We are constantly engaged in the development of functional adhe-also cutting out UV and blue light; and a functional adhesive forsive materials for use in many different industries. Using the lightlarge-screen televisions. As a result of customizing features todiffusion film technology which we have developed for opticalproduce superior performance in areas that particular custom-

displays, we succeeded in developing vision control films that are

ers require, we are close to the adoption of our specialty light

uniquely designed for window glass. With these films, customers

diffusion films, which control the diffusional field, in many differ-

are able to control areas they wish to hide from view without

ent types of reflective displays. They have also been adopted ascompromising on glass transparency or natural lighting. Because

projection screens at airports and other locations. As thesewindows appear either transparent or frosted depending on thescreens can be attached to the surface of existing structures, weviewing angle, privacy can be protected while preserving the viewexpect them to be widely used.

from the window. The films are suitable for use in offices andshops, as well as on windows, doors and partitions in houses, due

Through these and other R&D activities, this segment incurred
R&D expenses of ¥3.7 billion.

to the fact that they reduce the likelihood of fragments scattering
if a window is broken and also cut out UV.
Through these and other R&D activities, this segment incurred
R&D expenses of ¥2.7 billion.

Reflective LCD using LINTEC’s light diffusion film (right)

Example of light diffusion film in application(left: looking downwards; right: looking upwards)

LINTEC ANNUAL REPORT 201731

CORPORATE VALUE INITIATIVES

Research and Development
Paper and Converted Products
We developed and commenced sales of a new white craft paperthat has excellent water-repellent characteristics and is suitablefor offset printing and laser printers as a new version of an existing product that was launched in 2015. The new version is also
ideal for envelopes because of its concealment feature of morethan 99% and the fact that it can protect important information
they contain from view.
Through these and other R&D activities, this segment incurred
R&D expenses of ¥1.3 billion.

Column: LINTEC Semiconductor-Related Adhesive Tapes
LINTEC entered the semiconductor business field in 1986 through the development of
UV curable dicing tape that controls adhesion via UV radiation. This groundbreaking
tape adheres strongly when thin wafers are being diced into chips to prevent the chips
from scattering and reduces adhesion through UV radiation for easy removal when thechips are picked up. It currently has a global market share of around 50%.
Surface protective tapes have been gaining market share in recent years. They areused to protect circuits on wafer surfaces when the backside is being ground to makeDicing tape

the wafer thinner. LINTEC tapes are winning plaudits for quality and performance as
wafers become thinner and circuits become finer and more complex.
Our global share in backside coating tape for flip chips is almost 100%. Flip chips
have protruding electrodes on their circuit, which are flipped for direct mounting on
the substrate. LINTEC was the first mover in developing tapes with a view to reinforcing the backside surfaces of flip chips as chips became thinner.
We will aim to raise our presence further in the semiconductor industry through thecontinuous provision and development of innovative new products with consistently

Backside coating tape for flip chips

high quality.

Tape
Chip
Bump
Adhesive
Flip chip

Semiconductor chip manufacturing back-end processes
Wafer following
circuit formation

Back grinding(wafer thinning)

Lamination of surface
protective tapeLamination ofdicing tape

ReverseDicing(wafer cutting)

32

LINTEC ANNUAL REPORT 2017

UV irradiation of tape

Removal of surface
protective tape

ReversePicking up

Die bonding

Molding

Substrate

Intellectual Property Activities

Number of Patents

The LINTEC Group aims to increase corporate value by developing original products that fully satisfy customer needs. We therefore position intellectual property, including patents, trademarks,
and design rights, acquired through these development activities
as important management resources. While placing the utmost
emphasis on respecting the rights of other companies, theIntellectual Property Department of the Research & Development
Division promotes Companywide and strategic intellectual prop-

2,000

1,848
1,599

1,600
1,200
800
400

erty activities that include identification of new candidates forinvention at R&D sites to add to our intellectual property rights,
which are the lifeblood of a technology-centered company.
Accordingly, while linking activities such as patent portfolio

0

2013

2014

2015

2016
2017
(Fiscal years ended March 31)

Japan
Overseasbuilding for our foundation and growth business domains withour business strategy, we aim to improve profitability based on
intellectual property.

A Message from theGeneral Manager

Tatsuya Tsukida
Executive Officer
General Manager,
Research & Development Div.

Under our previous medium-term business plan, LIP-2016, webasic tenets of “front-loading design”1 and “one-stop develop-

sowed the seeds for bringing groundbreaking products from ourment”2 fully into the medium- and long-term development

laboratories to market. The Advanced Technology Building com-

process to give concrete shape to the research activities of eachpleted in 2015, which enabled us to conduct testing on large-

lab without delay. Our research staff are instructed to deliverscale pilot coaters instead of on facilities in our plants, wasmarketable products in the area on which they are working withextremely effective in improving development speed. As testing in

the aim of creating as many new products as possible to contrib-

the research center can be done without stopping existing facili-

ute to business. The globalization of LINTEC business hasties, we avoid production losses on lines in our plants and we are

increased the importance of having research staff stationed

also able to obtain more detailed data. We also have coating

overseas. Such staff not only provide technological support for

facilities for use in developing mass production processes foroverseas customers but are also very effective in obtaining an

next-generation products, and I think we will achieve striking

accurate picture of customer requirements. We therefore intend

results in the next three years.
Our first step under the new medium-term business plan,
LIP-2019, was to bring a planning department under the wing of
the research center in April 2017. The aim was to incorporate ourto second research staff to our subsidiaries overseas.
1 “Front-loading design” involves identifying development issues and risks as far as possible
in the initial stages of product development and devising early responses to minimize thenecessity for revisions at a later stage.
2 “One-stop development” consists of developing mass production processes in parallel withnew materials development.

LINTEC ANNUAL REPORT 201733

CORPORATE VALUE INITIATIVES

Production
The LINTEC Group utilizes sophisticated clean room facilities, cutting-edge manufacturing facilities, andoriginal production technologies in making products appropriate for wide-ranging customer requirements.
While establishing good relationships with our suppliers, we are actively making efforts to operate quality,
environmental, and business-continuity management systems. In doing so, we deliver peace of mind andreliability to our customers.
Production Structure
In Japan, our large and diverse product lineup is manufactured at 10 production plants. Keeping our eye on market needs, we areconstantly striving to enhance efficiency in production by introducing the latest facilities to replace older ones and reconstructing
plant layouts. Each plant also works on its own reforms and takes steps to increase yield and reduce costs. Overseas, we havemore than 10 production plants, which link with their Japan counterparts to form an optimal production network.

1 Agatsuma Plant

5 Shingu Plant

2 Kumagaya Plant

6 Komatsushima Plant

1

28

3

54
7

34

6

3 Chiba Plant

7 Mishima Plant

4 Tatsuno Plant

8 Ina Technology Center

LINTEC ANNUAL REPORT 2017

Zero Accident Culture

Fair Transactions

Safety is the top priority in LINTEC Group plants, which are

LINTEC has a basic policy for fair and transparent transactions

operated to preempt injuries to personnel. Our practices

based on the principle of free competition among suppliers,

include risk assessment, which enables us to put safety stan-and our procurement activities comply with all relevant laws

dards in place, and hazard prediction exercises as we pursue

and regulations and social norms. For major suppliers, we

our 5S* program of organizing, clearing up, cleaning, cleanli-require evaluations through self-audit check sheets for assess-ness, and discipline. Safety and hygiene committees holding suppliers based on quality, chemical substance manage-

monthly meetings at all our sites in Japan and overseas toment, administration and services, and CSR. We periodicallyenable us to ascertain progress in our safety activities andreview our purchasing processes while maintaining andshare information. In April 2017, a safety conference was held

strengthening partnerships.

for domestic plant safety officers for the exchange of information about each plant’s initiatives. We will continue activities on

Green Procurement

multiple fronts in accordance with our zero accident culture.

The LINTEC Group is committed to procurement that aims to* 5S: Seiri (organizing), Seiton (clearing up), Seiso (cleaning), Seiketsu (cleanliness),
and Shitsuke (discipline) in Japanese

reduce environmental impact through rigorous chemical substance management for raw materials, parts, and secondary
materials. When procuring a new material or responding to a

Thorough Quality Management

new regulation, we ask for suppliers’ understanding in con-

The LINTEC Group has acquired ISO 9001 certification, theducting ingredient examinations to monitor for the presence ofinternational standard for quality management systems, for 21

regulated substances. In the fiscal year ended March 31, 2017,

sites in Japan and overseas. We are working to further rein-

we carried out such examinations on approximately 5,000

force our quality assurance system by obtaining ISO 9001 foritems. In addition, we request that suppliers engage in proac-other departments and acquiring integrated certification fortive environmental preservation activities and undertake rigor-

related sites. When comparing major quality incidents by year,

ous chemical substance management.

if the fiscal year ended March 31, 2004, is set as 100 in an index
of major quality incidents, the level has been 20 or less for theEnvironmental Management

past five years. We construct and implement management

We have acquired global integrated certification under interna-

systems that enable us to take swift action if a quality incident

tional standard ISO 14001 for a total of 25 sites, including theshould occur, collecting information, analyzing causes, and

LINTEC head office and plants, Research Center, Group com-taking steps to prevent recurrence. This framework is in placepany TOKYO LINTEC KAKO, INC., and 11 overseas Group com-in Japan and overseas.

panies. Following the 2015 revision of ISO 14001, we areworking to achieve compliance with the revised standards andRatio of Quality Incidents to the Number Recorded
100

will continue to promote the acquisition of global integrated
certification by overseas Group companies as we strengthen

100

Companywide engagement in environmental preservation.

80
60
40
20
0

2004

20

18

2013

2014

14
2015

12

13

2016
2017
(Fiscal years ended March 31)

LINTEC ANNUAL REPORT 201735

CORPORATE VALUE INITIATIVES

Production
Reduction of Environmental Impact

Compliance with Environmental Laws, Directives,

The LINTEC Group is working toward the realization of a sus-

and Regulations

tainable society with manufacturing that has low environmental

The LINTEC Group seeks to be compliant with environmental

impact. CO2 emissions were reduced to 195,000 tons in thelaws, directives, and regulations in Japan and overseas andfiscal year ended March 31, 2017, from 200,000 tons in the

reduce chemical substances that are harmful to the environ-previous year. Although the amount of waste generated in pro-ment. In addition to responding to restricted substances stipu-

duction increased, the final landfill ratio was approximately

lated by REACH1 and RoHS,2 we conduct environmental impact

0.03% and we have achieved zero emissions with rates below

examinations of raw materials that we purchase and disclose

1.0% for 10 years. In papermaking, the amount of water usednecessary information to our customers.

per unit of production improved by 6.8% over the previous year.

In the fiscal year ended March 31, 2017, we reported nine

We are also constantly seeking to reduce the amount of volatile

substances under the PRTR system.3 The total volume wasorganic compounds (VOCs) including organic solvents that are

7,826 tons, of which 7,730 were toluene. Toluene emitted into

released into the atmosphere.

the air amounted to 471 tons, an increase of 30 tons over theprevious year, while the quantity transferred (treated as waste)
was 27 tons less than in the previous year, at 467 tons.

Fiscal Year 2017 Emission and Transfer of Toluene

Emission
into the air:

471 tons
LINTEC plants

Quantity
eliminated:
Exhaust processing equipment

Toluene handled:

7,730 tons

Manufacturing processes forrelease papers and adhesive
products

6,792 tons
(Elimination rate:
93.5%)

Toluene flow
Quantitytransferred(Treated as waste):
Note: Elimination rate = eliminated amount / (handled amount – transferred amount) ×100

1 REACH: EU regulation for the Registration, Evaluation, Authorisation andRestriction of Chemicals
2 RoHS: EU directive on the Restriction of the use of certain Hazardous Substances

3P
 RTR system: The Pollutant Release and Transfer Register system that requires
companies to estimate the volume of chemical substances they have released andtransferred in waste and report the data to the government

Environmentally Friendly Products

to meet a wide range of environmental needs. Our environmen-

The LINTEC Group has embraced the rise in environmental

tally friendly product lineup pays heed to reuse, recycling, andawareness of recent years, and continues to develop productsenergy saving.

Label material using recycled PET derived from used
PET bottles

36

467 tons

LINTEC ANNUAL REPORT 2017

Window film that cuts thermal energy from sunlight

High-adhesion removable-type label material that gives
consideration to reuse and recyclingEfforts toward Business Continuation

business operations, we can ensure the safety of our employ-

The Group is building a system that enables business opera-

ees and then recommence the supply of products promptly,

tions to continue or restart quickly if struck by a disaster. All

minimizing impact on our customers and other stakeholders.

the Company’s locations in Japan, subsidiaries TOKYO LINTEC

We also evaluate the business continuity capabilities of sup-

KAKO, INC., and LINTEC SPECIALITY FILMS (TAIWAN), INC.,

pliers of raw materials that are critical in securing stable sup-have obtained certification under ISO 22301:2012, the interna-

plies of our products. Additionally, we request that thesetional standard for business continuity management system

suppliers introduce a business continuity plan (BCP) and estab-(BCMS). BCMS study meetings and drills are held at all sites solish a system for implementing it on an organization-wide basis.

that, in the event of a natural disaster or accident that disrupts

A Message from theGeneral Manager

Gohei Kawamura
Director, Managing Executive Officer
General Manager, Production Div.

In production, our goals revolve around safety, quality, and yield.

formulation and VDI’s vapor depositing are attractive technolo-

As production General Manager, I will be pursuing our goals while

gies, and I want us to create synergies in these areas in thealso emphasizing speed in implementing necessary measures.

course of LIP-2019.

Under the medium-term business plan LIP-2019, I want to

LINTEC has consistently promoted on-site reform initiatives.

put our plants in Japan on an even more solid footing. Keeping

In April 2017, a conference was held for our plant safety officers

an eye on market trends, I will be giving consideration to invest-

in Japan to report on their safety activities and exchange views

ments designed to strengthen our production base for theon safety. This led to the discovery of points for improvement

future. This includes reconstructing plants and renewing facili-

and to the best activities being rolled out in other plants. I will

ties. Our overseas plants are growing in importance as our

be looking to maintain a rigorous safety approach as we boost

overseas sales ratio rises. The Printing and Industrial Materials

our plants’ strengths.

Products manufacturing bases in China and Southeast Asia arehaving difficulties, and the Production Division will be giving its
full support to these bases to improve earnings. In the U.S., the
key will be to realize synergies quickly with the two companies
that became subsidiaries in 2016. MACTAC AMERICA’s hot-melt

LINTEC ANNUAL REPORT 201737

CORPORATE VALUE INITIATIVES

Human Resources
The LINTEC Group employs more than 5,000 people in Japan and overseas including staff at non-­consolidated
companies. Diverse human resources are precious Group assets. During its 90-year history, LINTEC has
sought to foster a culture that values harmonious working relationships and also “stand out in the crowd”
individuality. This culture and a deeply rooted Companywide innovation mind-set are key Group strengths.
In its efforts to provide a congenial workplace for all, LINTEC pays constant attention to ­enhancing its systems and training employees.
Respect for Diversity and Human Rights

also run theme-specific group and correspondence courses to

The LINTEC Group avoids discriminatory treatment of employ-promote objectives such as second-language acquisition andees based on race, creed, gender, education, nationality, reli-encouraging women to take on a more active role in the work-

gion, or age, thereby respecting the diversity of individuals. In

place. At the same time, the Company’s intranet offers e-learn-

the areas of recruitment and employment, the Group complies

ing programs to increase all our employees’ understanding ofstrictly with labor laws and regulations, including the prohibi-

topics such as the environment, product quality, BCMS, andtion of unfair discrimination, child labor, and harassment, andCSR.

endeavors to promote an environment where all employees cango about their work in a positive and energized frame of mind.

Work-Life Balance

In 2017, we conducted a Groupwide survey of human rights and

LINTEC is active in promoting balance between work and per-working conditions that confirmed we are strong on compliancesonal life for employees to enable them to carry out their workand show respect for basic human rights. We plan to make thiswithout stress and exercise their abilities to the full. In additiona regular annual survey.

to careful labor management designed to deter employees

We have a helpline through which employees can consult

from working excessively long hours, and the implementation

with the General Affairs & Human Resources Division or aof a flextime system, LINTEC aims to enable employees tolawyer if they have any concerns or have witnessed illegal

match their work style to their lifestyle by augmenting pro-behavior in the workplace. Access was extended to overseas

grams such as planned vacation, which encourages employees

Group companies in 2015 and an English-language helpline is

to take their paid leave. In the fiscal year ended March 31, 2017,

also available.

we continued to promote the creation of environments in which
employees can work with peace of mind through such mea-

Employee Educationsures as extending the length of periods of leave and shorten-

LINTEC has a Companywide training system based on rank, as

ing work hours through the family care program, in addition tohuman resource education programs tailored to years of

expanding the field of eligibility for shorter work hours using

continuous service and career. To foster a globally oriented

the childcare program.

workforce and advance the careers of female employees, weEmployment of People with Disabilities
The Group’s employment ratio for people with disabilities
reached 2.06% in the fiscal year ended March 31, 2017, surpassing the legally mandated ratio of 2.0%. We will endeavor toincrease the ratio further with measures such as improvements
to on-site facilities as required.

Training seminar

38

LINTEC ANNUAL REPORT 2017

Rehiring Systems

a spouse’s transfer to a different location. We also have a

To expand work-style options for its employees, the Groupsystem that enables employees who wish to continue working

operates a “job return” program for rehiring people who arebeyond the mandatory retirement age of 60 to work on one-year

still able to fill posts effectively after resigning for personal

contracts to a maximum age of 65.

reasons such as childbirth, nursing care of a family member, or

A Message from theGeneral Manager

Tsunetoshi Mochizuki
Director, Managing Executive Officer
General Manager, General Affairs &Human Resources Div.

To increase labor productivity, it is essential to have diverse

In fostering human resources I have the image of a moun-human resources with a dynamic and healthy work style. Work-tain, with specialty work knowledge at the summit and broader

style reform has become a national theme in Japan and at

knowledge and understanding of related areas at the foot. The

LINTEC we have achieved results with our thorough labor man-Company as a whole supports career advancement with train-

agement aimed at deterring employees from working too manying courses tailored to the employee’s level and theme-specifichours and our planned vacation system, which has increased

courses.

employees’ use of paid leave.

I want people to take pride in being a LINTEC employee andIn regard to diversity, we established a committee to study

family member 10, 20, and 30 years from now and have a smile

the promotion of diversity in 2016, and we are seeking to pro-on their face as they go about their daily life. I also want to main-

vide support and an appropriate work environment for employ-tain an open corporate culture where people can speak theirees in situations such as caring for family members andminds. To these ends, I will be making adjustments to the work

bringing up small children. Our promotion of greater female

environment and improvements to human resources systems.

participation includes initiatives to change female employees’
way of thinking, a system for returning to work after having
children, and the expansion of the female ratio of hired graduates, managers, and section chiefs.

LINTEC ANNUAL REPORT 201739