Message from the President and CEO

To Our Shareholders and Investors Representative Director, President, CEO and COO Makoto Hattori

April 2022

A Year of All-Out Effort Pushing to Achieve Our Long-term Vision

At the start of the fiscal year ended March 31, 2022, the Lintec Group announced the Lintec Sustainability Vision 2030 (LSV 2030) to clarify its long-term vision for where it wants to be in 2030. Setting us on the road to achieving this vision, we simultaneously launched LSV 2030-Stage 1, a three-year medium-term business plan.

Our performance in the first year of the plan was strong, underpinned by robust demand for products related to semiconductors and electronic components. Moreover, compared with the fiscal year ended March 31, 2021, in which performance was severely impacted by the COVID-19 pandemic, overall demand for other products recovered. As a result, we expect to exceed the quantitative management targets for the plan’s final year (the fiscal year ending March 31, 2024) and achieve record-high results. However, we cannot claim that all of the results attained in the first year of the plan were sufficient. And, considering the currently surging raw material and fuel costs, supply chain disruptions, and the impacts of recurring spikes in COVID-19 cases and geopolitical risks, we cannot afford to be overly optimistic.

We have positioned the second year under the plan, namely the current fiscal year ending March 31, 2023, as a year in which we will make an all-out effort pushing to achieve LSV 2030, and we are therefore focusing all our might on promoting the various measures we now need to take. It is imperative that we improve the profitability of low-earning businesses while accelerating investment in growth fields, such as semiconductor- and electronic component-related products. In both our long-term vision and medium-term business plan, we have adopted operating profit margin and return on equity (ROE) as key indicators. To achieve an ROE that substantially exceeds the current cost of capital of between 5% and 6%, we will work hard to improve profitability in each business and enhance shareholder returns, thereby increasing capital efficiency.

In addition, as laid out in the key initiatives of our long-term vision, this year we will strengthen ESG and SDG initiatives, especially those regarding environmentally oriented adaptation aimed at decarbonization. We are striving to create new products and businesses and to strengthen the corporate structure through process innovation using digital transformation (DX) with the aim of helping solve social issues and realize a sustainable world. I would like to thank our shareholders and investors for their continued support in the years ahead.

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