Long-term Vision: Three Key Initiatives* Price-to-earnings ratioCash allocation for sustainable growth• Solve social issues• Foster innovation to build a robust corporate structure• Create new products and businesses to deliver sustainable growthTarget for final year of Stage 2: 8% or higherlogistics bases and reviewing the supply chain. We expect efficiency gains and cost reductions, and with the roughly ¥4 billion annual burden of amortization of goodwill scheduled to end during the period of our medium-term business plan, we anticipate increased profitability moving forward. In Optical Products Operations, we dissolved LINTEC SPECIALITY FILMS (KOREA), INC. and LINTEC SPECIALITY FILMS (TAIWAN), INC., which had been engaged in the adhesive processing business for polarizing films, during the previous fiscal year. This decision was based on the view that recovery in performance at both locations was unlikely due to the recent rise of Chinese companies in the LCD-related business. Going forward, in Optical Products Operations, we will continue to focus on polarizing film products for organic light- emitting diode displays and promote the expansion of proprietary products, such as adhesive products for in-vehicle displays and light diffusion films, while also steadily working to reduce fixed costs.launch of new products and businesses. At the same time, we will work toward continuous improvement in ROE through appropriate capital allocation and agile shareholder returns. In the past, we tended to prioritize sales growth, and there was relatively less focus on profitability and capital efficiency. In fact, we intentionally did not disclose numerical targets for net sales or operating income for the fiscal year ending March 31, 2030, to encourage internal awareness reform. March 31, 2024, we transitioned to a framework in which each business operation analyzes and utilizes its own balance sheet. Furthermore, starting from the fiscal year ended • Strengthen QCD for existing businesses to make them highly profitable• Optimize business portfolio through extensive restructuring• Swiftly launch new products and businesses• Transform business processes including development, manufacturing, and Increase Profitability logistics through digital transformation (DX)Improve capital • Increase turnover of trade receivables, inventories, and fixed assets to improve asset efficiency efficiency• Enhance shareholder returns Actively engage in dialogue with • Strengthen IR activities for individual and institutional investors• Improve the LINTEC IR site and Integrated Report shareholders and implement IR activitiesPromote sustainability management• Strengthening ESG Initiatives• Enhancement of disclosure of information regarding sustainability management28Initiatives to Achieve Management Mindful of Cost of Capital and the Stock PriceStrategiesFinancial Strategy： A Message from the CFOFine & Specialty Paper Products Operations, which recorded impairment losses in the previous fiscal year, continue to face profitability challenges due to persistently high pulp raw prices and declining sales volumes. However, this business also plays a role in manufacturing raw materials for our adhesive business by supplying release base paper internally. Therefore, we recognize that withdrawing or selling this business at this time could risk negatively impacting the profitability of other business operations. However, as we recognize that structural reforms in the business are essential, in July 2025 we decided to take the first step by shutting down one of the paper machines operating at the Kumagaya Plant. We are also promoting structural reforms in other areas, such as MACTAC AMERICAS, LLC, which belongs to Printing & Variable Information Products Operations, and Optical Products Operations. MACTAC AMERICAS is working on consolidating production and Currently, LINTEC’s price-to-book value ratio (PBR) remains below 1.0, a level that reflects undervaluation, and we recognize the urgent need to establish a proper stock valuation. We estimate that our WACC for the previous fiscal year was around 6%. To consistently achieve a PBR above 1.0, we recognize the importance of consistently generating ROE that exceeds WACC. Under LSV 2030, we have set financial targets of an operating profit margin of 12% or more and ROE of 10% or more, with the aim of improving corporate value over the medium to long term. To achieve this, we will pursue growth in sales and profit margins through structural reforms; enhancement of quality, cost, and delivery; and the early Financial domainsNon-financial domainsPromotion of Structural ReformsFurther Improvement of ROEPBR ROE PER*
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