Integrated Report 2019

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Strategy32LINTEC INTEGRATED REPORT 2019A Message from the Executive General Manager, Optical Products OperationsLooking at our results in the fiscal year ended March 31, 2019, the LCD film adhesive processing business benefited from solid demand for large-screen televisions, and our net sales increased year on year. However, due to the rise of Chinese panel manufacturers and other factors, we are facing contin-ued difficult price competition, and cost improvement has become an urgent issue. Currently, we are taking steps to strengthen our global business in cooperation with the polar-izing film manufacturer that is collaborating with our manufacturing bases in Japan, South Korea, and Taiwan. In this way, we are working to build a system to further increase our earning power. In addition, LINTEC is also work-ing to cut costs from all angles, such as revising formulas for adhesives and reducing production costs.In new business areas, such as optically functional films for touch screens, we are developing new adhesives, revising sales routes, and implementing other initiatives. We are starting to see steady results from these initiatives, centered on use in onboard displays and smartphones. Moving forward, we will aim to rapidly create new businesses, without limiting ourselves to existing business areas, and aim for a stable business portfolio comprising multiple business pillars.Optical Products OperationsBusiness Operations IntroductionWe deploy our development technologies for special adhesives and surface coating agents as well as precision coating tech-nology and use leading-edge production facilities to provide adhesive processing and surface improvement processing for various types of optically functional films, such as polarizing films that are used in LCDs and organic light-emitting diode (OLED) displays. In addition, through the development of inno-vative adhesives and films, we are working to start new opti-cal-related businesses.Satoru ShoshiExecutive OfficerExecutive General Manager,Optical Products Operations,Business Administration Div.Business Strategy483624122016201720182019202039.237.337.240.241.70Net Sales: Optical Products Operations¥ Billion(Fiscal year ended / ending March 31)(Forecast)