Integrated Report 2019

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Strategy20LINTEC INTEGRATED REPORT 2019Review of Consolidated Results in the Fiscal Year Ended March 31, 2019, and Forecasts for the Fiscal Year Ending March 31, 2020LINTEC achieved record-high net sales for the second consecutive year, but the scale of the increase was small, and our operating income declined, falling substantially below the forecast at the beginning of the fiscal year. The principal reasons were that sales of our mainstay adhesive products for labels were sluggish as a result of the influ-ence of heavy rains and the severely hot summer, and that earnings worsened, centered on Fine & Specialty Paper Products Operations, due to higher prices for pulp and other raw materials and fuel. Moreover, in the second half of the fiscal year, the semiconductor market entered a stage of production adjustments, and lower sales of semiconductor-related tapes, which have high profitability, also had a major influence on our results. Profit attribut-able to owners of parent increased, due in part to the fact that in the previous fiscal year, extraordinary loss included ¥1.0 billion in impairment loss of goodwill and ¥1.0 billion in provision for business structure improvement for a U.S. subsidiary.Looking at the consolidated business results forecasts for the fiscal year ending March 31, 2020, we anticipate an increase in personnel expenses and other fixed costs. However, we will endeavor to further expand sales and reduce costs, and we expect prices of raw materials and fuel to decline. Accordingly, we are forecasting increases in sales and profits.A Message from the CFOI will strive to increase corporate value by raising capital efficiency and enhancing shareholder returns.Yoichi ShibanoExecutive Officer and CFO Executive General Manager, Administration Div. and General Manager, Finance & Accounting Dept.FY2019 Consolidated Results and FY2020 ForecastsFiscal year ended March 31, 2019 (year on year)Fiscal year ending March 31, 2020 (year on year)Net Sales¥250.9 billion(+0.8%)¥260.0 billion(+3.6%)Operating Income¥18.0 billion(-10.5%)¥19.0 billion(+5.7%)Profit Attributable to Owners of Parent¥12.9 billion(+14.9%)¥13.5 billion(+4.3%)