The Story Bridging the Gap Between Expectations and RealityAkiko OkushimaOutside DirectorCommunication That Aligns ValuesSeiichiro ShirahataOutside DirectorLINTEC’s efforts to achieve management that is conscious of capital cost and stock price have been steadily advancing year by year. In the fiscal year ended March 31, 2025, the Company achieved record-high profit while also addressing profitability concerns in Fine & Specialty Paper Products Operations by recognizing impairment losses. I believe these efforts are commendable. I also recognize enhancements in both the quality and quantity of sustainability initiatives and communication with shareholders and investors. That said, while I understand that there is often a time lag between LINTEC’s ongoing review of business portfolio optimization is an effective means of improving profitability and recovering invested capital. The process of comparing overall company and individual business performance over multiple years using both return on invested capital (ROIC) and economic value added provides insight into performance trends and facilitates strategic discussions. This process is proving effective for enhancing corporate value. With over 60% of sales now generated overseas, and that figure expected to grow, the performance of overseas subsidiaries directly influences overall company valuation. This makes it all the executing initiatives and achieving a fair valuation, I still feel that the current share price does not fully reflect these corporate efforts, and a gap remains between shareholder expectations and the current reality. In Board of Directors meetings, we now receive direct explanations from division heads, including detailed SWOT analyses, regarding their strategic direction and individual initiatives. This has allowed for more in-depth discussions around each business’s aims. I believe that by clearly communicating the narrative behind these initiatives to shareholders and investors, LINTEC can help close the expectation gap. Through thorough briefings by heads of operations, my understanding of the LINTEC Group has certainly deepened. However, I must admit that when it comes to overseas subsidiaries, I do not yet fully grasp their fundamental challenges. As LINTEC operates on a global scale, making the factors that drive change in overseas businesses more visible will be essential for further enhancing corporate value.more important to reemphasize the value of communication with local partners. However, this does not mean applying rigid governance controls over subsidiaries. What matters most is communication grounded in shared values. As partners working toward shared goals, we should empower local teams by delegating authority, encourage proactive engagement, and ensure alignment through the timely sharing of key information, including financial data. Since joining the Board as an outside director following the General Meeting of Shareholders in June 2024, I’ve participated in in-depth discussions, through the Board and other forums, on the growth investment proposals presented by management. To reap future rewards, sustained investment in growth and innovation is essential, and this in turn depends on strengthening our earning power. I look forward to continuing rigorous and constructive discussions with my fellow directors as we pursue sustainable growth.LINTEC is a company that actively invests in growth. 58LINTEC is currently advancing reforms aimed at enhancing corporate value, including management that is conscious of capital cost and stock price, as well as the optimization of its business portfolio. Following their reappointment at the General Meeting of Shareholders in June 2025, we asked the four independent outside directors—Akiko Okushima, Seiichiro Shirahata, Kanako Osawa, and Shigeru Sugimoto—to share their objective views on LINTEC’s management and governance and on the challenges it faces in increasing corporate value.Messages from Independent Outside Directors
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