20222023Hideki MiyakeExecutive Officer Executive General Manager, Industrial & Material Operations, Business Administration Div.202420252026Industrial & Material Operations31.133.325.035.838.039.3Business Strategy (Main Initiatives in Medium–Term Business Plan LSV 2030-Stage 2) Further functional enhancements and growth in sales of window film New product development and systems sales growth to contribute to solving the labor shortage and improving productivity Development and increased sales of digital print media Development of environmentally friendly productsQ&A in Response to Frequently Asked Questions from InvestorsQ Can you provide an overview of your U.S. subsidiary VDI, LLC?A VDI is a functional film manufacturer that possesses Featured Topic(Fiscal years ended / ending March 31) Review of the Fiscal Year Ended March 31, 2025In the fiscal year ended March 31, 2025, domestic sales of window film for buildings increased in response to rising awareness around crime prevention. Additionally, demand for marking film was boosted by large-scale, project-based orders. In the e-commerce sector, increased demand for automation led to strong sales of shipping labels to major operators. Overseas, demand for building safety film for schools and government buildings continued at MADICO., INC. in the United States. Sales of adhesive products for automobiles also expanded at LINTEC INDIA PRIVATE LIMITED, leading to a significant increase in sales at overseas Group companies. As a result, total sales for the business operation exceeded those of the previous fiscal year. Strategic Direction for the Fiscal Year Ending March 31, 2026For the fiscal year ending March 31, 2026, we have set forth a divisional policy: “Based on our commitment to quality, we will develop and deliver the products and services the market demands in order to enhance customer satisfaction.” We will carry over the quality-first approach emphasized in the fiscal year ended March 31, 2025, and position the creation and delivery of new products and services as a core strategic direction. Particularly for window film, we will aim to enhance functionality and expand sales by highlighting our new film for automobiles launched in August 2024, which improves heat shielding performance while maintaining high transparency. To achieve our divisional objectives, we are reorganizing our structure to establish systems that facilitate smoother communi-cation, information sharing, and operational execution. Through these measures and more vigorous sales efforts, we aim to enhance our competitiveness in the marketplace. We also established the Sales Promotion Department to strengthen information and policy sharing among Group companies in Japan and abroad. This department will foster cross-organizational product development and support the broader adoption of both new and existing products.Net Sales¥ Billion50.00(Forecast)metallizing technology used to form thin metallic layers on the surface of film. The LINTEC Group made the company a subsidiary in 2016; however, VDI had previously been a supplier to MADICO. In the fiscal year ended December 31, 2024, the company’s sputtering films, its mainstay product, saw a substantial increase in sales volumes for aerospace applications, contributing to profitability in this business operation.Window Film Attracts Attention for Use in Crime PreventionOne of the key products in this business operation is window film, which offers features such as shatter resistance. Notably, demand has remained strong for safety film manufactured and sold by MADICO in the United States since the fiscal year ended December 31, 2024. With the continued occurrence of school shootings in the United States, multiple states have begun offering subsidies to promote security measures in schools. MADICO’s safety film has been adopted by five states, driving higher sales volumes for products geared toward crime prevention. In Japan as well, window film for buildings is attracting attention due to a rise in robbery cases linked to “underground part-time job” recruitment, an issue that has grown into a significant social concern.41
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