Labelexpo Europe 2015Review of Performance in the Fiscal Year Ended March 31, 2016 Final prot declined due to foreign exchange losses and an increase in total extraordinary lossesIn the scal year ended March 31, 2016, the second year of three-year medium-term business plan, LINTEC INNOVATION PLAN 2016 (LIP-2016), higher demand for smartphones, which grew sales in Electronic and Optical Products; yen depreciation; and falling raw material and fuel prices supported business results. However, the appearance of foreign exchange losses due to yen appreciation from the beginning of 2016 and the recognition of extraordi-nary losses for subsidiaries in the United States and Indonesia affected earnings negatively.As a result, although net sales and operating income rose, nal prot declined. The Group posted year-on-year increases of 1.6% in net sales, to ¥210.5 billion, and 4.8% in operating income, to ¥17.7 billion, while prot attrib-utable to owners of parent decreased 6.5%, to ¥10.9 billion.Initiatives in the Second Year of LIP-2016 (1) Advancing business development globally produced benets, but tasks remainIn the scal year ended March 31, 2016, we continued efforts that have been ongoing since LIP-2016’s rst year to tackle a range of measures based on the plan’s ve key initiatives. Efforts to strengthen and expand overseas businesses focused on expanding manufacturing, sales, and delivery capabilities, primarily in Southeast Asia and India. In conjunction with these efforts, in Singapore we established LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED, which is responsible for preparing and implementing comprehensive business strategies in Southeast Asia and India. We will increase competitive-ness further by building an optimal production system and improving the ef-ciency of local raw material procurement. In addition, in Europe we set out our largest ever booth at the world’s biggest label-related exhibition, Labelexpo Europe 2015, held in Belgium in autumn last year. Recognition of our brand is denitely rising in the European market, and we intend to actively take advan-tage of this recognition to attract new customers.However, our efforts to rebuild U.S. subsidiary, MADICO, INC., which has continued to record lackluster business results, did not proceed as planned. Moreover, the company’s mainstay window lms performed sluggishly in the Chinese market, moving the company further into the red. Also, our main production base for adhesive and other products in Southeast Asia, PT. LINTEC INDONESIA, temporarily suspended operations due to strike action. In relation to the two subsidiaries, we incurred extraordinary loss of more than ¥0.8 billion. Thus, signicant issues remain in this regard.11LINTEC ANNUAL REPORT 2016


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