Under its previous medium-term business plan, “LINTEC SUSTAINABILITY VISION 2030 (LSV 2030) - Stage 1,” the LINTEC Group was able to reduce its CO₂ emissions by 51% compared to FY2013 levels. It hit this milestone ahead of schedule, with the original target of a 50% or more reduction set for 2030. This achievement was largely attributable to the significant emissions reduction brought about by improvements in the paper machine drying process, which conventionally produces a large volume of CO₂, as well as quality improvement and cost-cutting efforts. These resulted from actions taken to move forward the initial phase-in facility improvement schedule in view of the importance of accelerating the implementation of effective measures in order to maximize profitability. I personally asked on-site operations teams to do everything they possibly could to achieve the environmental target and they responded to my request by making a sincere and serious effort to perform operational and environmental tasks at the same time, even while dealing with a number of other operational issues and problems. When I visited operation sites to conduct a Top Management Patrol, I was pleased to see employees expressing greater confidence in their efforts while confirming the visible effects. Having achieved the emissions target ahead of schedule, we set a new target in the new medium-term management plan, “LSV 2030 - Stage 2.” The new target is to reduce CO₂ emissions by 75% or more compared to FY2013 levels by 2030.

We are also promoting production of solvent-free release materials and adhesives and proactive development and marketing of environmentally friendly products, such as “mono-material” labelstock. In addition, we are taking necessary steps to protect the natural environment in locations where we conduct production activities to fulfill our responsibilities as a manufacturer. Furthermore, in accordance with “LSV 2030 - Stage 2,” we have reviewed our materiality (material issues) based on an adequate understanding of the environment surrounding the company. Mindful of the mission of maintaining LINTEC’s reputation for reliability, which is one of our key material issues, we will endeavor to build good relationships with local communities and continue to be an employer of choice for local residents.

• Special Feature: Reviewing Materiality and KPIs [PDF: 129KB]

Respecting human rights is a basic principle that companies must observe when developing their business and sourcing their materials at home and abroad. Our customers in the semiconductor industry began early on to encourage their suppliers to address this issue by including related items in supplier surveys. They are now increasing their requirements for corporate activities in accordance with various guidelines related to their codes of conduct. In response, the LINTEC Group defined respect for human rights as one of the priority themes of “LSV 2030” and established the LINTEC Group Human Rights Policy in January 2024. Going forward, we will take appropriate steps and make improvements as needed while seeking external advice and support.

In my view, true diversity in the workplace means different but talented people working together in a natural manner.
In accordance with “LSV 2030 - Stage 1,” we have implemented an array of work practice reforms, including extending the mandatory retirement age to 65. In years to come, I hope that diverse personnel will enjoy fair opportunities at LINTEC regardless of age, gender, and other factors and will thrive at work. At the same time, we will strive to create a less stressful environment so that every employee can strive to fulfill their potential, which is vital for the sustainable development of the company. I think it is very important that the company has a diverse workforce and that it engages with its customers and other stakeholders continuously.

One of the core principles of corporate governance is disclosure and transparency. This is becoming an important issue for the LINTEC Group as it expands its global reach through M&As^＊. To make new overseas subsidiaries feel welcome, we work early on to engage in appropriate and respectful communication when negotiating policies and refrain from requiring them to comprehensively follow Japanese business practices and styles. We also place a great deal of importance on the performance of disclosure with speed and transparency. For shareholders and investors, we take particular care to ensure the impartiality of disclosed information. With regard to the disclosure of management information and matters resolved by the Board of Directors, we are working to improve the speed at which this occurs.

• ＊M&As: Mergers and acquisitions

“LSV 2030 - Stage 2” has been formulated based on results of “LSV 2030 - Stage 1.” Among the full set of initiatives defined for the current Stage 2 plan, each of which should in principle have equal weight, in my view, DX^＊ should be given overriding priority. This is in response to the formidable situation we experienced during the second year of the previous Stage 1 plan, which ended with a bad result on our part due largely to the impact of monetary policies of governments around the world to raise interest rates in order to control inflation, as well as to the slowdown in demand related to electronics and optics. In order to be a sustainable company, we must be able to continue to do business even in the harshest environment. To this end, profitability is crucial. To ensure this capacity, we need to agilely respond to changes in surrounding conditions. One such major change that is currently giving rise to concerns right across society is the labor shortage resulting from the aging and shrinking of our national population. In response to this situation, we are planning to adopt DX and robotics technologies to reform work practices so as to reduce dependence on human labor.
The LINTEC Group has managed to remain in business for many years since its founding despite a host of challenges. It has done this thanks to the help of its customers, support of its suppliers, and efforts of all group employees. Based on this robust history, we will continue to advance while contributing to the realization of a sustainable world, which is what I imagine when I think about our vision.

• ＊DX: Digital transformation. Refers to an operational reform approach to adapting to environmental changes by utilizing data and digital technologies to transform product, service, and business models according to customer and social needs as well as promoting makeovers in work contents and processes, organization design, corporate culture, and other business practices with the aim of establishing competitive advantages.

One of my most essential missions is to make sure our employees fully understand the new medium-term business plan, “LSV 2030 - Stage 2.” For this purpose, I am making considered efforts in view of a disappointing past experience when employee satisfaction surveys revealed that measures to explain company policies had failed. To avoid a similar failure, I am taking appropriate opportunities as they become available, such as in-house newsletters, internal meetings, and occasional site visits, to describe the details of the plan in plain yet memorable language.
We are also endeavoring to create an environment in which employees in all departments, regardless of whether or not they are involved in development activities, are encouraged to submit suggestions for new products and businesses. In the past, I myself made such suggestions based on customer requests and market needs that I had identified while working in sales. I therefore suggest that the frontline sales team should be able to voluntarily offer ideas for new products and get involved in development activities. It is important to build a corporate culture in which every employee is willing to participate in new development activities. This concept can be applied not only for product creation but also for improved management and business models. This, I believe, will be a source of LINTEC’s robust strength and innovation.
I will be our employees’ strongest supporter, providing encouragement to each person in our diverse workforce to innovate. This is my vitally important role.

I previously imagined achieving innovation to be a prohibitively difficult issue, thinking it required special magic-like powers and meant coming up with entirely new inventions—a challenge that could never be surmounted by individuals lacking in both knowledge and time. I later changed my thinking after I encountered the theory of innovation developed by economist Joseph Schumpeter, who suggested that innovation is closely linked with existing technologies and activities. This view inspired me to note the possibility of creating new value by delving further into themes we had already been pursuing.

According to my current approach to innovation, the key is to go as deep as possible as you explore your theme. In the course of this journey, you may deviate only slightly from your previous path, but this may be sufficient for you to chance upon something valuable. So dig deep to achieve innovation.
Looking back on the history of the group, you will see how it has successfully weathered change by drawing on its four core technologies^＊ and exploring further possibilities for them. This suggests that continued exploration of these core technologies is likely to be a valid strategy for swift product development, which is the key to innovation. Let’s keep this history in mind as we continue to delve deeper into our current businesses, aiming to become a sustainable company.

• ＊Four core technologies: Adhesive applications, surface improvements, specialty papers and release materials production, and system development

For LINTEC to build and maintain trust and a favorable reputation, all of its group employees must work together as one. One of the keys to doing this is to show respect for others regardless of geographical and cultural differences. Imagine that you are sharing information with the entire group. You need to figure out appropriate ways to communicate according to the characteristics of the recipient. You may struggle in your effort to determine the best way of fulfilling the task, but the struggle itself constitutes your respect. I base this view on the experiences I had as a sales representative working on marketing all over the world. While engaging in negotiations, I made all-out efforts to show my respect to the other party to establish effective communication, and such efforts helped me to build good relationships with local parties in many different regions, which boosted my confidence. A willingness to better understand others is a good basis for building interpersonal relationships characterized by trust. And the key to successful relationship building is to show respect.

I believe that our group employees are the driving force of all of LINTEC’s businesses as well as an engine for generating corporate strength. LINTEC must therefore strive to be a company that its employees are proud to work for, despite the occasional hardships. This is also a basic condition for the company to be appreciated by other stakeholders, who are also our supporters.
Despite the bad results recorded for the period under the previous medium-term business plan, which were due to various factors existing in the business environment, each employee did their utmost to fulfill their role in implementing initiatives. I appreciate those efforts. By stepping up such efforts, I believe we will be able to post good figures under the “LSV 2030 - Stage 2” plan. In order to grow our business, we need to increase our operating income and improve our operating profit margin and ROE^＊. Going forward, we will make appropriate proposals to customers as required and promote “metabolic” activities with suppliers. In this fashion, LINTEC will continue to be a sustainable business operator.

• ＊ROE: Return on equity

Response to the Message from the President

The Message from the President contains essential concepts and views that must be understood if we are to implement the “LSV 2030” long-term vision successfully. All group employees are asked to join forces and align themselves with these views and policies in order to generate strong forward momentum.
In this context, the Sustainability Management Office plays two major roles, as described below.
First, for the achievement of the vision, we must ensure that the intention of top management is effectively conveyed to all employees and that they fully understand it and are willing to act on it.
In light of the president’s message, the following is particularly important. In order for the group to achieve full momentum, each employee needs to develop their own ideas about the reasons behind the long-term vision and “LSV 2030 - Stage 2” and their roles in contributing to the achievement of these plans. Employees must then engage in priority issues as well as group-wide and department-wide initiatives with a sense of ownership. Meanwhile, the president will act as their “strongest supporter,” encouraging each one to innovate and test the limits of their potential.
The second role of the Sustainability Management Office is associated with the recent major changes in the external environment surrounding the group, which are increasing in scope, intensity, depth, and speed. It should be noted that sustainability issues set for materiality (material issues) are organically linked with management strategies in order to contribute to corporate growth and should not be treated separately as independent pre-financial issues. To facilitate the understanding of this notion, we recognize the increasing importance of presenting a reasonable narrative to explain the related issues.
It is our job to map these environmental changes and requirements accurately and offer new suggestions to the Sustainability Committee and other internal organizations, and to plan measures to promote appropriate activities. We then disclose the results of the implementation of the group’s strategies and activities, both internally and externally, in an appropriate and timely manner so that the group is able to enhance its performance through dialogues with stakeholders.
So, in summary, our roles are to convey the intention of top management to serve as the strongest supporter of employees while building a culture that encourages independent thought and action; and to promote new approaches and strategies to be implemented toward realizing the long-term vision. Going forward, we are strongly committed to fulfilling these two roles.

Masaru Hoshi
Executive Officer
General Manager, Sustainability Management Office

August 30, 2024