The keys to achieving the financial indicators in our long-term vision are creating new products and businesses and improving earnings through rationalization and optimization of existing businesses. The fact that the Electronic and Optical Products segment currently accounts for approximately 80% of operating income is not ideal, and we urgently need to address unprofit-able businesses and rebuild overseas Group companies. There have been some comments from shareholders and investors that we should consider withdrawing from low-margin businesses; even the semiconductor industry, which has been on a growth trajectory, periodically goes through a corrective phase. Protecting employment is important from an ESG per-spective, especially amid the aforementioned circumstances, and LINTEC intends to build an optimal business portfolio while reassessing how best to balance its resources and analyzing and addressing issues in each business.LINTEC has set up a variety of development-focused enti- ties—such as the New Project Planning Office, the Technical Planning Office, and the Next Generation Innovation Group—for creating new products and businesses. While keeping abreast of needs in each domain, which vary in terms of target markets Makoto HattoriRepresentative DirectorPresident, CEO and COOand development time frames, LINTEC will build a structure able to supply new products as early as possible. At every opportunity, I convey to all employees of the LINTEC Group that I would like them to think about what kinds of products there should be from a customer perspective, namely their own perspective, when considering market needs. This line of think-ing leads to the development of products that customers truly desire and products that exceed those expectations. Although it is important to create products at the request of customers, I believe the market will come to value LINTEC more if we can create new products by tapping into emerging needs. The LINTEC Group’s long-term vision, LSV 2030, is not perfect. We plan on refining it, incorporating the opinions of outside directors on the Sustainability Committee, and having each division and department hold regular discussions, with consideration paid to changes in business conditions and the state of new product development. With our sights set on real-izing LSV 2030, we are working in unison as a company to achieve the objectives outlined in LSV 2030-Stage 1. I am grate-ful to and ask for the unwavering support of our shareholders and investors in this regard going forward.LINTEC Integrated Report 202123In Closing
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