Integrated Report 2020

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LINTEC Integrated Report 202033A Message from the Executive General Manager, Fine & Specialty Paper Products OperationsSince January 2019, in consideration of the rising pulp prices up to that point, the Company has gradually raised prices. In the fiscal year under review, we basically completed this process. Consequently, our overall results improved, but sales quantity remained extremely challenging. In particular, due to the slump in the semiconductor market, industrial-use special function papers, such as dust-free papers, declined substantially. Furthermore, due to the trend toward paperless solutions, the fine and specialty papers market contracted. In this setting, demand for high-grade printing papers also declined. Moreover, schools have all been closed due to the spread of the COVID-19 infection, and orders for colored construction papers recorded a significant decline. On the other hand, oil- and water-resistant papers for food packaging, principally for convenience stores and fast food restaurants, continued to register solid results. In addition, construction material papers, such as wallpaper base papers and decorative laminate papers, recorded favorable results due to strong renovation demand, etc.With the domestic market contracting each year, this business operation must aggressively develop new products in order to continue to record growth going forward. In par-ticular, we are approaching trends such as the move away from the use of plastics as opportunities, and we are advanc-ing the development and sales of products that address Fine & Specialty Paper Products OperationsBusiness Operations IntroductionWe have the leading share in the domestic 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 products used in business cards and postcards. Currently, these operations are centered on Japan. However, we are strengthening sales activi-ties with a view to developing overseas markets, centered on high-value-added products.20151052021201720182019202016.4016.716.716.416.5¥ BillionNet Sales: Fine & Specialty Paper Products Operations(Fiscal years ended / ending March 31)(Forecast)Toshimi SugayaSenior Executive OfficerDeputy Executive General Manager, Business Administration Div. and Executive General Manager, Fine & Specialty Paper Products Operationsenvironmental needs, such as base paper for paper straws. Furthermore, we are also working proactively with the devel-opment of functional papers. These are utilized as substitute materials for PET films and for synthetic paper, which are used as facestock in adhesive products for labels. Moreover, another important issue will be bolstering overseas develop-ment initiatives, such as in Asia. Moving forward, we will step up our efforts to expand the use of special function papers, for which the LINTEC Group has special strengths.FoundationOverviewFinancial InformationStrategy