Integrated Report 2020

LINTEC Integrated Report 202031A Message from the Executive General Manager, Optical Products OperationsLooking at our results in the fiscal year under review, our mainstay adhesive processing business for films for LCDs and OLEDs recorded a small gain in sales quantity. Nonetheless, we registered a significant decline in net sales. There were a variety of reasons for this decline. In particular, high-value-added products for small and medium-sized items, such as smartphones, were significantly affected by U.S.-China trade friction.Changes in the optical display-related market are accel-erating, and, in this environment, we will work together with the polarizing film manufacturers that cooperate with the Group as we continue aiming to build a more-efficient manu-facturing system at our production bases in Japan, South Korea, and Taiwan. In addition, another major issue will be the rapid commercialization of new optical-related products, for which we have continued to implement development initiatives. Our current focus items include thick optical adhesive sheets, which are optimal for lamination of compo-nents, such as touch panels, and glass anti-shatter films for displays. These items are starting to generate results, including on-board applications, centered on China. Moving forward, we will also take steps to strengthen sales promo-tion activities targeting not only display manufacturers but also component punching processing companies.Furthermore, for our light diffusion films, which can Business Operations IntroductionWe deploy our development technologies for special adhesives and surface coating agents as well as precision coating technol-ogy and use leading-edge production facilities to provide adhe-sive 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) dis-plays. In addition, through the development of innovative adhe-sives and films, we are working to start new optical-related businesses.¥ BillionNet Sales: Optical Products Operations29.734.338.037.240.248362412202120172018201920200(Fiscal years ended / ending March 31)(Forecast)Optical Products Operationsefficiently diffuse incident light in the optimal direction, we expect to see growing demand for various display applica-tions, such as reflective displays which do not use backlight-ing. These films can make the screens on reflective displays brighter and more vivid, and accordingly we will work to increase the adoption of these products as highly functional films that can contribute to the expanded use of reflective displays in such applications as smart watches and touch panels. Satoru ShoshiExecutive OfficerExecutive General Manager, Optical Products Operations, Business Administration Div.FoundationOverviewFinancial InformationStrategy

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