Integrated Report 2019

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A Message from the Executive General Manager, Printing & Variable Information Products Operations27LINTEC INTEGRATED REPORT 2019In the domestic market, we have implemented continued initiatives to develop new demand and expand our market share. However, in the fiscal year ended March 31, 2019, demand for products for food- and beverage-related appli-cations was sluggish due to natural disasters, and conditions were challenging. In the fiscal year ending March 31, 2020, we will work to develop new demand related to the international sports events that will be held in Japan in 2019 and 2020. In addition, we will further step up the development and proposal of environmentally friendly products, for which needs are steadily increasing.Overseas, in Southeast Asia, we have worked to roll out hot-melt adhesive products from MACTAC AMERICAS,a production subsidiary in the U.S., and we have achieved a certain degree of results with these initiatives. In North America, we are steadily increasing sales of LINTEC prod-ucts through the sales routes of MACTAC AMERICAS. However, MACTAC AMERICAS has recorded an operating loss, due in part to the intensification of price competition. Major issues to tackle will be further cost reductions and the rapid realization of synergy effects from the acquisition. In Europe, we are working to expand sales of high-value-added products, such as medical and pharmaceutical products as well as automobile-related products. These efforts are being led by LINTEC EUROPE B.V., a sales subsidiary in the Netherlands, and its subsidiary LINTEC EUROPE (UK) LIMITED. That being said, we recognize that our sales capabilities are still insufficient. Moving forward, we will increase corporate brand recognition and focus on a stable supply and increased sales of high-value-added products, including taking steps to address the issue of the U.K. leaving the EU.Masaaki YoshitakeExecutive OfficerExecutive General Manager, Printing & Variable Information Products Operations,Business Administration Div.Printing & Variable Information Products OperationsBusiness Operations IntroductionAccounting for approximately 35% of the sales of the LINTEC Group, these are its largest operations. They manufacture and sell the Group’s mainstay adhesive papers and films for labels. In particular, these operations have a leading share of Japan’s market for adhesive films, which have particularly high added value. Overseas, we expanded our manufacturing and sales net-work, centered on Asia, and we established a foothold for business development in the North American market with the acquisition of U.S. company MACTAC AMERICAS, LLC in 2016.ESGStrategyOverviewFinancial Information1007550252016201720182019202091.986.687.155.154.10¥ BillionNet Sales: Printing & Variable Information Products Operations(Fiscal year ended / ending March 31)(Forecast)