Integrated Report 2019

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35LINTEC INTEGRATED REPORT 2019A Message from the Executive General Manager, Fine & Specialty Paper Products OperationsDue to such factors as lower demand resulting from the trend toward paperless operations and higher prices for pulp and other raw materials, we are facing an extremely chal-lenging business environment. In the fiscal year ended March 31, 2019, favorable results were recorded by such products as color papers for envelopes that have a high level of concealment functionality and contribute to the protection of personal information, and oil and water resistant papersused in food packaging, centered on fast food. On the other hand, dust-free papers and other industrial-use special function papers faced difficult conditions due to the sluggish semiconductor market. In addition, demand for base papers for total heat exchangers was also sluggish under the influ-ence of reduced air pollution in China.With the domestic market contracting, we face urgent issues to address. We must create hit products that can develop new markets for color papers for envelopes, which account for approximately half of the sales in this operation. Also, in special function papers, we must accelerate the discovery of new applications and the development of new products. Looking at overseas markets that hold significant potential for development, our results are steadily improving, centered on industrial-use special function papers. Furthermore, global environmental awareness is increasing, such as in the move away from the use of plastics and the preservation of forests. In response, we will aggressively take steps to expand our lineup of environmentally friendly products, such as increasing the use of forest-certified pulp, which contributes to appropriate forest management, and developing base paper for paper straws.Fine & Specialty Paper Products OperationsBusiness Operations IntroductionWe have the leading share in the Japanese market for color papers for envelopes and colored construction papers. We also manufacture and sell specialty papers including oil and water resistant papers used in food packaging, dust-free papers for use in places such as clean rooms, high-grade printing papers with special textures, and high-grade papers for paper prod-ucts used in business cards and postcards. Currently, these operations are centered on Japan. Going forward, however, we will also concentrate on sales activities with a view to increas-ing sales overseas.Toshimi SugayaExecutive OfficerExecutive General Manager, Fine & Specialty Paper Products Operations,Business Administration Div.20151052016201720182019202017.516.716.416.517.00¥ BillionNet Sales: Fine & Specialty Paper Products OperationsESGStrategyOverviewFinancial Information(Fiscal year ended / ending March 31)(Forecast)