Revenues and ExpensesIn the scal year under review, consolidated net sales increased 1.6% year-on-year, to ¥210.5 billion. This increase was attributable to a variety of factors including substantial growth in Advanced materials operations backed by the effects of demand for smartphones and other items.Gross prot increased 7.0% year-on-year, to ¥53.6 billion, following such factors as higher sales volumes and lower prices for petro-chemical raw materials and fuel, which counteracted the rise in the price of pulp resulted from yen depreciation. Operating income, how-ever, only grew 4.8%, to ¥17.7 billion, due to higher general adminis-trative expenses associated with the completion of new research center buildings. Prot before income taxes was ¥16.8 billion, down 4.3% year-on-year, as a result of the recording of foreign exchange losses and increased extraordinary loss. Income taxes were ¥6.0 bil-lion following the application of tax effect accounting, and prot attributable to owners of parent for the scal year under review amounted to ¥10.9 billion, a year-on-year decrease of 6.5%.Net income per share decreased from ¥161.63 in the previous scal year to ¥151.07, and ROE declined from 7.2% to 6.4%.Performance by Operational SegmentPrinting & Industrial Materials ProductsIn Printing & variable information products operations, sales of adhesive products for seals and labels in overseas markets decreased mainly due to the effects of an economic downturn in China and the ASEAN region, but sales remained solid in Japan, particularly with regard to sales of beverage-, medical-, and cosmetic-use products.In Industrial & material operations, sales of window lms were sluggish, due partly to the effects of an economic slowdown in China, while sales of motorcycle- and automobile-use adhesive products were steady, particularly in India.As a result of the above, net sales in Printing and Industrial Materials Products were up 1.0% year-on-year, to ¥87.6 billion, and operating income decreased 3.2%, to ¥2.8 billion.Electronic & Optical ProductsIn Advanced materials operations, sales of semiconductor-related adhesive tapes posted signicant growth backed by the effects of demand for smartphones and other products, while sales of semiconductor-related equipment decreased. Multilayer ceramic capacitor-related tapes grew signicantly thanks to the effects of demand for smartphones and automotive products.In Optical products operations, sales of LCD-related adhesive products were steady due to the effects of demand for medium- and small-sized applications for smartphones.As a result of the above, net sales in Electronic and Optical Products were up 2.7% year-on-year, to ¥85.4 billion, and operating income increased 4.9%, to ¥10.6 billion.Paper & Converted ProductsIn Fine & specialty paper products operations, sales of color papers for envelopes, mainstay products, were steady and sales of oil resis-tant papers grew backed by the effects of demand for products for convenience stores and fast food restaurants.Management’s Discussion and AnalysisNet SalesOperating Income207.3210.520152016Printing and Industrial Materials Products+0.9Electronic andOptical Products+2.2Paper and Converted Products+0.216.917.720152016Printing and IndustrialMaterials Products–0.1Electronic andOptical Products+0.5Paper andConverted Products+0.3Adjustment+0.1¥ Billion¥ Billion(Fiscal years ended March 31)(Fiscal years ended March 31)41LINTEC ANNUAL REPORT 2016:: FINANCIAL SECTION


page 43