Performance Outlook for the Fiscal Year Ending March 31, 2017 (year-on-year)Net Sales: ¥215.0 billion (+2.1%)Operating Income: ¥20.0 billion (+13.0%)Prot Attributable to Owners of Parent: ¥13.5 billion (+23.9%)In addition, the beginning of operations in earnest at the Advanced Technology Building adjacent to our existing research center—which required an investment of approximately ¥6.0 billion—is a major step toward the next stage of growth for the Group. We will take full advantage of the new annex’s large-scale pilot coaters and state-of-the-art analysis equipment to accelerate the development of new products. As for manufacturing, we are actively undertaking large-scale capital investment at bases in Japan and overseas, including the Kumagaya Plant in Saitama Prefecture, the Shingu Plant in Hyogo Prefecture, and LINTEC (THAILAND) CO., LTD., with a view to increasing production efciency and capac-ity and enabling the mass production of newly developed products.Performance Outlook for the Fiscal Year Ending March 31, 2017We expect to achieve operating income of ¥20.0 billion by rebuilding subsidiariesIn the scal year ending March 31, 2017, we will step up efforts to grow sales and reduce costs in Japan and overseas. Regarding the two overseas subsid-iaries mentioned previously, we will rationalize the business management of MADICO further and rebuild the supply capabilities of LINTEC INDONESIA while supporting production through bases in Japan and Thailand. Also, in the current scal year we anticipate signicant yen appreciation year-on-year, which will affect business results negatively. On the other hand, we expect cheaper raw materials and fuel and a change in the depreciation method for property, plant and equipment to be benecial.As a result, in the scal year ending March 31, 2017, we project year-on-year increases of 2.1% in net sales, to ¥215.0 billion; 13.0% in operating income, to ¥20.0 billion; and 23.9% in prot attributable to owners of parent, to ¥13.5 billion. While we are unlikely to reach LIP-2016’s nal numerical target of ¥240.0 billion for net sales, we believe operating income of ¥20.0 billion is well within reach. Further, although this performance outlook does not reect M&A activities, we are always considering M&A activities that will help us expand sales channels, acquire technological capabilities, or realize future growth, and we will continue to do so.Shareholder ReturnsIn the current scal year, we plan to increase the dividend per share by ¥12, to ¥66LINTEC regards enhancement of return of prots to shareholders as one of its most important management issues. From the perspective of distributing prots, the Company fundamentally aims to provide stable and continued returns after consideration of each scal year’s consolidated performance while strengthening its management base. Adhering to this basic policy, the year-end dividend for the scal year ended March 31, 2016, was set at ¥27 and, in combination with the New building for producing optically function lms (Shingu Plant)13LINTEC ANNUAL REPORT 2016


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