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Optical Products OperationsThese operations conduct adhesive processing for optical functional lms, including polarizing lms and retardation lms used to make LCDs; surface improvement pro-cessing for polarizing lms, such as antiglare hard coat processing, which protects lms from scratches and reduces reectivity; and the manufacturing of protective lms for polarizing lms.Main Products•Polarizing lms and retardation lms (adhesive processing)•Polarizing lms (surface improvement processing)•Protective lms for polarizing lmsNet Sales: ¥41.7 billion (Fiscal year ended March 31, 2016)In the LCD market, demand for products for large televisions and smartphones uctuates markedly. The degree and period of inventory adjustments for these products has a signicant effect on strategies in Optical products operations. Further, we have a strong sense of crisis due to intensifying price competition.However, we believe that there are tasks that we must accomplish now in the midst of these difcult business conditions. In its rst year, LIP-2016 set forth goals that call for rigorous reform of quality, costs, delivery, and developmental capabilities as well as the building of a global quality management system at production bases in Japan, South Korea, and Taiwan. The benets of these measures are emerging steadily and include improved adhesive formulation and rationalized production processes. While continuing to advance such measures, we will work in partnership with a lm manufacturer that is our supplier to begin developing new materials that will become future growth drivers.Business StrategiesKazuyoshi EbeDirector, Managing Executive OfcerAssistant General Manager, Business Administration Div., in charge of Optical Products Operations, Business Administration Div.This business segment comprises Advanced materials operations and Optical products operations. In the scal year ended March 31, 2016, the business segment posted net sales of ¥85.4 billion, accounting for 40.6% of the Group’s net sales. Operating income was ¥10.6 billion, or 59.8% of the Group’s operating income.19LINTEC ANNUAL REPORT 2016

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