March 18, 2021

Lintec Group Announces Lintec Sustainability Vision 2030 (LSV 2030) and New Medium-term Business Plan LSV 2030 - Stage 1

The Lintec Group announced today the outline of its long-term vision, Lintec Sustainability Vision 2030 (LSV 2030), with the fiscal year ending March 31, 2030 as its final year. The Group also announced the outline of its new three-year medium-term business plan, entitled, "LSV 2030 - Stage 1," which covers the three years from April 2021 to March 2024, and is formulated as a milestone on the road to achieving its long-term vision.

Under the previous medium-term business plan, LIP-2019, the final year of which was the fiscal year ended March 31, 2020, the Lintec Group has been addressing various measures based on the four key initiatives of "strengthening of regional strategy," "creation of new value," "bolstering the corporate structure," and "activities for realizing a sustainable society" under the basic policy of "deepening innovation aimed at driving new growth." However, the consolidated financial results of the final year were far below the initial target due to the economic slowdown in China and the moderation of IT demand caused by the US-China trade frictions since the second year of the plan, as well as the soaring prices of raw materials such as pulp.

Originally, the Group planned to start a new medium-term business plan in April 2020, but since the application of the accounting standards for revenue recognition were to become mandatory in April 2021 and that was likely to have an impact on net sales and operating profit margin, the Group decided to make fiscal 2020 a single-year plan and start the new medium-term business plan in April 2021.

The management and business environments are expected to enter an era of increasing future uncertainty due to climate change and global population growth, Japan's declining birthrate, aging population, and shrinking population, and fiercer competition due to a shrinking market. To address these challenges and achieve sustainable growth, the Lintec Group has set a clear vision for the future, and is encouraging all Group employees to work together as one to achieve it. The basic concept of the long-term vision is to contribute to society broadly and continually by creating and developing new products and business fields while making the most of the unique technological capabilities the Group has acquired, while steadily working to solve various social issues, for instance by addressing global environmental issues. Based on this vision, the Lintec Group will work proactively on each key initiative from a sustainability perspective.

Outline of the Long-term Vision

I. Name

Lintec Sustainability Vision 2030
(Abbreviation: LSV 2030)

II. Basic Policy

Contribute to realizing a sustainable world by strengthening the corporate structure through innovation and creating new products and businesses for sustainable growth

III. Key Initiatives

  1. Solve social issues
    1. Environment: Help to shape a carbon-free, recycling-oriented world
    2. Society: Respect human rights, provide proper information disclosure to stakeholders, improve communication
    3. Governance: Strengthen corporate governance, further increase effectiveness of the Board of Directors
    4. Ensure that business activities help to achieve the Sustainable Development Goals (SDGs)
  2. Foster innovation to build a robust corporate structure
    1. Transform business processes including design, development, manufacturing, and logistics through digital transformation (DX)
    2. Install new production equipment through scrap and build, with the aim to conserve energy, raise quality, increase efficiency, and reduce labor
    3. Strengthen cost competitiveness with innovation in production processes
    4. Reform the structure of low-growth and unprofitable businesses and soundly manage Group companies
    5. Maintain a solid financial base and improve capital efficiency
  3. Create new products and businesses to deliver sustainable growth
    1. Expand strategic investment and flexibly conduct mergers and acquisitions (M&A)
    2. Create new products and businesses driven by technological innovation
    3. Move aggressively to win a greater presence in the global market
    4. Establish localization

IV. Financial indicators for the fiscal year ending March 31, 2030

Operating profit margin: 12% or more
ROE (Return on Equity): 10% or more

Outline of New Medium-term Business Plan

I. Name and Term

"LSV 2030 - Stage 1" -- April 2021 to March 2024

II. Main Initiatives for Each Business Segment

  • Printing and Industrial Materials Products
    • Printing & Variable Information Products Operations
      • Expand production bases and strengthen sales capabilities outside Japan, including in the United States and Asia
      • Pursue initiatives to ensure harmonious co-existence with the global environment and help build a recycling-oriented world
    • Industrial & Material Operations
      • Expand sales of window film and expand/develop high-performance products in Japan and overseas
      • Expand sales of automated systems centered on labeling technology
  • Electronic and Optical Products
    • Advanced Materials Operations
      • Expand market share of semiconductor and electronic component-related products through aggressive investment
      • Develop thin-film, high-density, multi-layer products for next-generation device manufacturing processes
    • Optical Products Operations
      • Develop and expand sales of new Optical Clear Adhesive (OCA) products
      • Enter new markets for light diffusion film
  • Paper and Converted Products
    • Fine & Specialty Paper Products Operations
      • Develop and expand sales of new products that are plastic-free and reduce food loss
      • Develop new applications by strengthening the competitiveness of existing products
    • Converted Products Operations
      • Promote solventless and polyethylene-free release paper
      • Develop and expand sales of casting paper for enamel finish and automotive synthetic leathers

III. Management targets for the fiscal year ending March 31, 2024 (final year)

Net Sales: 240 billion yen
Operating Income: 21 billion yen
Profit Attributable to Owners of Parent: 14 billion yen
Operating Profit Margin: 8% or more
ROE (Return on Equity): 7% or more

The contents of the News Release are as of the announcement date. Please note that they may differ from the latest information.