Integrated Report 2019

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23LINTEC INTEGRATED REPORT 2019Decisively Implementing Thorough Management Rationalization Searching for New Possibilities for Industrial-Use FilmsMADICO, INC.MADICO is a manufacturer acquired by LINTEC in 1987. The company’s main products are window films for buildings and automobiles, and by simply applying these films to windows, users can enjoy functional benefits such as thermal insulation and UV reduction. With a high level of brand strength and a wide-ranging sales network centered on North America, MADICO currently has a share of approximately 10% of the North American market. In September 2010, MADICO estab-lished a two-plant system with the acquisition of a window film manufacturer in Florida. However, due to weak results in the business of PV backsheets, which had been expected to be the company’s second business pillar along with window films, MADICO’s results worsened, and the company has been recording operating losses since 2012. To break away from this unprofitable situation, in 2017 we began to implement a thorough management rationalization. In the fiscal year ended December 31, 2018, MADICO achieved a return to profitability at the operating level as a result of a complete withdrawal from the backsheet business and the consolidation of manufacturing bases following the acquisition of a new site and building in Florida.Multifaceted Strategy Centered on the Window Film BusinessIn addition to its core window films business, MADICO is currently targeting new growth by advanc-ing the development and proposal of special functional films. These include protective films for smartphones, which are provided to mobile phone stores along with a cutting machine. In this way, MADICO is proposing a business model that makes it easy to create and sell films matching the size of the smartphone in the store. There is no need to keep inventories of film for each phone model, and this system can also accommodate older models. As a result, sales are recording favorable growth. As well, industrial materials for special applications are recording steady improvement in results. For example, an interior finishing material with high levels of heat resis-tance and fire resistance has been designated as a material for use in aircraft.In October 2016, the LINTEC Group acquired VDI, LLC (Kentucky, U.S.), a manufacturer of functional films working in thin film formation processing, such as metal deposition and sputtering, principally for window films. This acquisition enabled the LINTEC Group to secure processing technologies for film substrates, which it did not possess. We are steadily advancing joint research into the utilization of these technologies in the LINTEC Group’s operations, such as in MADICO’s window film and special functional film businesses.Company name:MADICO, INC.Location: Florida, U.S.Number of employees:158 (as of December 31, 2018)Net sales: ¥6.6 billion (fiscal year ended December 31, 2018)Business description:Manufacturing and sales of window films, special functional films, etc. Leveraging VDI’s Film Processing TechnologiesMADICO, INC.MACTAC AMERICAS, LLCVDI, LLCESGStrategyOverviewFinancial Information