Integrated Report 2020

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In Converted Products Operations, sales of release papers for electronic materials were firm. However, sales of release papers for general-use adhesive products and release films for optical-related products were sluggish.As a result, the segment’s net sales were down 3.5% year on year, to ¥36.4 billion, while operating income rose 17.9%, to ¥3.5 billion, due in part to lower prices for pulp.Financial PositionAssetsTotal assets as of March 31, 2020, were ¥279.0 billion, a decrease of ¥11.3 billion from the end of the previous fiscal year. The main changes were as follows:· Cash and deposits–¥5.0 billion· Trade notes and accounts receivable–¥6.6 billion· Property, plant and equipment, net+¥5.4 billion· Goodwill–¥4.0 billionLiabilitiesTotal liabilities as of March 31, 2020, were ¥86.7 billion, a decrease of ¥13.4 billion from the end of the previous fiscal year. The main changes were as follows:· Trade notes and accounts payable–¥11.4 billion· Current portion of long-term loans payable+¥6.2 billion· Long-term loans payable–¥9.3 billion· Net defined benefit liability+¥1.5 billionNet AssetsNet assets as of March 31, 2020, were ¥192.3 billion, an increase of ¥2.1 billion from the end of the previous fiscal year. The main changes were as follows:· Retained earnings+¥4.0 billion· Foreign currency translation adjustments–¥1.0 billionCash FlowsCash and cash equivalents as of March 31, 2020, amounted to ¥52.3 billion, a decrease of ¥6.0 billion year on year.Cash Flows from Operating ActivitiesCash flows from operating activities decreased ¥4.4 billion year on year, to a cash inflow of ¥18.5 billion. The principal movements were as follows:· Profit before income taxes–¥4.4 billion· Trade notes and accounts receivable+¥4.0 billion· Inventories+¥2.9 billion· Trade notes and accounts payable–¥10.3 billion· Income taxes paid+¥1.4 billionCash Flows from Investing ActivitiesCash flows from investing activities decreased ¥3.5 billion year on year, to a cash outflow of ¥13.8 billion. The principal movements were as follows:· Payments into time deposits–¥2.9 billion· Proceeds from withdrawal of time deposits+¥2.9 billion· Purchase of property, plant and equipment–¥1.7 billion· Proceeds from sales of property, plant and equipment–¥0.9 billionCash Flows from Financing ActivitiesCash flows from financing activities decreased ¥2.0 billion year on year, to a cash outflow of ¥10.3 billion. The principal movement was as follows:· Short-term loans payable–¥1.1 billionNet AssetsCash Flows¥ Billion¥ Billion(Fiscal years ended March 31)(Fiscal years ended March 31)190.2192.3Total shareholders’ equity+4.1Total accumulated other comprehensive income–1.9Sharesubscriptionrights–0.0Non-controllinginterests–0.12020201958.352.3Net cash provided byoperating activities+18.5Net cash used ininvesting activities –13.8Net cash used in financing activities –10.3Effect of exchange ratechange on cashand cash equivalents –0.420202019LINTEC Integrated Report 2020FoundationStrategyOverviewFinancial Information69