Integrated Report 2019

73/110

Revenues and ExpensesIn the fiscal year ended March 31, 2019, LINTEC achieved a new record high in consolidated net sales for the second consecutive year. However, in Japan, sales of our mainstay adhesive products for labels were weak due to the influence of natural disasters and a severely hot summer. In addition, the semiconductor market was sluggish in the second half of the fiscal year. As a result, net sales recorded only a small amount of growth overall, rising 0.8% year on year, to ¥250.9 billion. Operating income was down 10.5% year on year, to ¥18.0 billion, as a result of such factors as higher prices for raw materials and fuel, centered on pulp. Profit before income taxes rose 10.0% year on year, to ¥18.3 billion in the fiscal year under review, due in part to the extraordinary losses recorded in the previous fiscal year, which included provision for business structure improvement of ¥1.0 billion and impairment loss of good-will of ¥1.0 billion, both of which were related to U.S. subsidiaries. Income taxes following the application of tax effect accounting were ¥5.4 billion, and profit attributable to owners of parent rose 14.9%, to ¥12.9 billion.Net income per share increased from ¥156.02 in the previous fiscal year to ¥179.24, and ROE rose from 6.2% to 6.9%.Performance by Business SegmentPrinting and Industrial Materials ProductsIn Printing & Variable Information Products Operations, looking at adhesive products for labels, in Japan products for the home deliv-ery and mail-order businesses enjoyed solid demand, as did eye-catching labels for cosmetics and other products. However, sales of products for food- and beverage-related applications remained weak due to natural disasters and the severely hot summer in the first half of the fiscal year. Overseas, sales in the ASEAN region were firm, but demand in China was sluggish, and the strong yen had an adverse effect on the sales of U.S. subsidiaries when stated in yen.In Industrial & Material Operations, sales of machines for the mail-order business remained firm in Japan. Overseas, sales of motorcycle- and automobile-use adhesive products were favorable in India and the ASEAN region. In addition, sales of automobile-use window films were also firm.As a result, the segment’s net sales were up 1.0% year on year, to ¥122.9 billion, and operating income rose 23.7%, to ¥3.8 billion, due in part to improved earnings at U.S. subsidiaries.Electronic and Optical ProductsIn Advanced Materials Operations, sales of semiconductor-related adhesive tapes decreased due to the effect of production adjust-ments in the market. Despite the effect of restraints on capital expenditures, sales of semiconductor-related equipment remained at about the same level as in the previous year. Sales of multilayer ceramic capacitor-related tapes increased, due principally to strong demand for products used in smartphones, automobiles, and servers.In Optical Products Operations, looking at optical display-related adhesive products, sales of products for smartphones were affected by sluggish demand in the second half of the fiscal year, but sales of products for large televisions were favorable through-out the year.As a result, the segment’s net sales were up 1.6% year on year, to ¥90.3 billion, while operating income declined 6.9%, to ¥11.2 billion.Paper and Converted ProductsIn Fine & Specialty Paper Products Operations, sales of papers for envelopes with a concealing effect and oil and water resistant papers for fast food were favorable.In Converted Products Operations, sales of casting papers for carbon fiber composite materials were favorable, but sales of release papers for general-use adhesive products and for elec-tronic materials were sluggish.As a result, the segment’s net sales were down 2.0% year on year, to ¥37.7 billion, while operating income declined 40.5%, to ¥3.0 billion, due to higher prices for raw materials and fuel, cen-tered on pulp.Net SalesOperating Income249.0250.9Printing and Industrial Materials Products+1.2Electronic and Optical Products+1.4Paper and Converted Products–0.82019201820.118.0Printing and Industrial Materials Products+0.7Electronic and Optical Products–0.8Paper and Converted Products–2.0Adjustment+0.020192018¥ Billion¥ Billion(Fiscal years ended March 31)(Fiscal years ended March 31)71LINTEC INTEGRATED REPORT 2019Financial InformationESGStrategyOverviewManagement’s Discussion and Analysis