Integrated Report 2019

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15LINTEC INTEGRATED REPORT 2019Finishing the Second Year of the LIP-2019 Medium-Term Business PlanThe fiscal year ending March 31, 2020, will be the final year of LINTEC’s three-year medium-term business plan, LINTEC INNOVATION PLAN 2019 (LIP-2019). We launched the plan in April 2017, and we are implementing four key initiatives in accordance with the basic policy of “deepen-ing innovation aimed at driving new growth.” In the fiscal year ended March 31, 2018, the first year of the plan, we got off to a basically favorable start with net sales of ¥249.0 billion and operating income of ¥20.1 billion. In the fiscal year under review, the second year of the plan, net sales were up by a small amount year on year, and operat-ing income declined. Our results were substantially below our initial planned targets. Rising prices for raw materials and fuel put pressure on earnings, and the deceleration of the semiconductor market, which had maintained robust conditions in recent years, also had a major influence. Due in part to approximately ¥2.0 billion in extraordinary losses in the previous fiscal year, profit attributable to owners of parent increased, but nonetheless was below the initial forecast. For the final year of LIP-2019, we announced targets of more than 9% for both the operating profit margin and ROE, but actual figures for the second year of the plan were 7.2% and 6.9%, respectively.Operating Profit Margin / ROE%1086426.96.26.66.47.27.28.18.18.48.1201520162017201820190 Operating Profit Margin ROEFY2019 Business Results (year on year)Net Sales¥250.9 billion(+0.8%)Operating Income¥18.0 billion(-10.5%)Profit Attributable to Owners of Parent¥12.9 billion(+14.9%)Major Results and Progress with the Key Initiatives of LIP-2019First, in regard to “strengthening of regional strategy,” we worked to generate synergies with MACTAC AMERICAS, LLC, a U.S. manufacturer of adhesive products for labels that we acquired at the end of 2016. We also exhibited at label-related exhibitions in Thailand and the U.S. Through these types of initiatives, we worked to introduce the prod-ucts of MACTAC AMERICAS in Southeast Asia and to expand sales of LINTEC products in the North American market. Next, in regard to “creation of new value,” we implemented technical development in growth fields and took steps to advance product development by making the most of our technologies. As a result, we are starting to see progress with promising new products. Also, in April 2018, we established the New Project Planning Office in the Business Administration Div. with the objective of furthering the creation of new businesses. Through close cooperation between each area of operations and the Research & Development Div., we will work to identify new market needs and rapidly develop products and establish businesses. Next, in regard to “bolstering the corporate structure,” at MADICO, INC., a production subsidiary in the U.S. that had been posting losses for a number of years, we implemented management rationalization measures, such as base consolidation and workforce reductions, and MADICO was able to achieve a return to profitability. The final key initiative is “activities for realizing a sustainable society.” We are aggressively promoting work-style reforms, and we are steadily seeing results from these (Fiscal year ended March 31)ESGStrategyOverviewFinancial Information