Integrated Report 2020

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A Message from the Executive General Manager, Converted Products OperationsIn the fiscal year under review, demand was sluggish overall. Release papers for electronic materials were solid, but lower sales were recorded by release papers for general-use adhe-sive products, release films for optical-related products, cast-ing papers for synthetic leather, and casting papers for carbon fiber composite materials. In particular, we believe that a recovery in casting papers for synthetic leather will take some time, due to continued sluggish conditions in the Chinese Business StrategyBusiness Operations IntroductionWe manufacture and sell release papers and films that protect the adhesive surfaces of various adhesive products, casting papers that are used as patterning papers for placing designs on synthetic leather, casting papers used in the manufacture of carbon fiber composite material sheets from fibers, and other products. These are endowed with a variety of special functions, including not only releasability but also resistance to water, heat, and abrasion.241812618.92021201720182019202019.621.022.020.60¥ BillionNet Sales: Converted Products Operations(Fiscal years ended / ending March 31)(Forecast)Yutaka IwasakiSenior Executive OfficerExecutive General Manager, Converted Products Operations, Business Administration Div.market and to the influence of the spread of the COVID-19 infection since the beginning of 2020, which is expected to lead to a decline in consumption of apparel, sports shoes, etc. Looking at casting papers for carbon fiber composite materi-als, a recovery in aircraft demand is expected to occur after the normalization of the global economy. In casting papers, we will need to implement new initia-tives to break through this type of challenging business environment. In casting papers for synthetic leather, due to such factors as higher personnel costs, stronger environ-mental regulations, and U.S.-China trade friction, there is a trend for Chinese manufacturers to relocate production bases from China, which had been a major production area for synthetic leather, to Southeast Asia and other markets. To follow these relocations, if the conditions are favorable, we will aggressively bolster sales outside of China of products from LINTEC (SUZHOU) TECH CORPORATION, a production subsidiary that had been targeting the Chinese market. Looking at casting papers for carbon fiber composite materi-als, we will work to strengthen sales promotion in overseas markets, including for sports and leisure applications. In addition, in release papers for electronic materials, overseas competitors are enhancing their market presence, and, going forward, we will aim to expand our business by taking such steps as developing and proposing less-expensive products.Strategy34LINTEC Integrated Report 2020Converted Products Operations