Integrated Report 2020

21LINTEC Integrated Report 2020A Message from the CFOI will aim to enhance corporate value by increasing profitability and capital efficiency.Yoichi ShibanoExecutive Officer and CFOExecutive General Manager, Administration Div. and General Manager, Finance & Accounting Dept.Review of the Fiscal Year Ended March 31, 2020Due to an adjustment phase in the electronics-related market, in the Electronic and Optical Products segment, sales declined by approximately ¥8.4 billion year on year. Overall, the Company’s net sales in the fiscal year under review declined by more than ¥10.0 billion. In addition, in Printing & Industrial Materials Products Operations, which account for approximately half of consolidated net sales, operating income was down by 75% year on year. The worsening of earnings in Printing & Variable Information Products Operations on a non-consolidated basis was especially notable. At this point, we have launched a coun-termeasures team and are moving ahead with a detailed analysis. A primary factor was the decline in sales of adhesive films, which have high profitability, due to sluggish sales of seasonal products as a result of unseasonable weather, the suspension of beverage campaigns, etc. However, to build a foundation that is less susceptible to fluctuations in the business environment, further cost reductions will be necessary. We believe that we need to set up cost reductions, including measures to improve plant operations, increase production efficiency, and save labor as well as initiatives to improve procured material costs and distribution costs. In addition, the key to growth in this business will be the expansion of our share in Southeast Asia. In regard to this point, we will consider the use of capital if necessary, such as through M&A initiatives.Influence of COVID-19 and Consolidated Business Results Forecasts for the Current Fiscal YearLooking at our consolidated business results forecasts for the fiscal year ending March 31, 2021, the spread of the COVID-19 infection is expected to lead to the cancellation or postponement of various events, a sluggish automotive market, reduced production of aircraft, etc. Accordingly, we are expecting a certain level of negative influence on a variety of business fields. On the other hand, new demand is also being created, such as the growth of consumption related to people staying at home and tele-working. It is difficult to accurately foresee the influence of the global COVID-19 crisis. At our results presentation in May 2020, our results forecast for the fiscal year ending March 31, 2021, was the same level as in the fiscal year ended March 31, 2020, based on the assumption that business activity would start to return to normal from the third quarter. However, there is still no global resolution in sight, and if it becomes necessary to revise our results forecast due to the lengthening of the spread of the infection, then we will make an announcement promptly.FoundationOverviewFinancial InformationStrategy

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