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Converted Products OperationsThese operations provide release papers and lms that protect the adhesive surfaces of a variety of adhesive products. Additionally, we produce casting papers that are used as patterning papers for placing designs on synthetic leather. We also manufacture casting papers for carbon ber composite materials for which demand is expected to rise in conjunction with increased usage in aircraft.Main Products• Release papers for general-use • Release lms for optical-related products • Casting papers for synthetic leather • Casting papers for carbon ber composite materialsNet Sales: ¥20.5 billion (Fiscal year ended March 31, 2016)As they were in the rst year of LIP-2016, sales in China were lackluster. A series of bankruptcies among local synthetic leather manufacturers and sluggish demand for base papers for abrasive papers used in construction are making for tough business conditions. In relation to casting papers for synthetic leather, we will rebuild operations in China with a particular focus on high-value-added products. At the same time, we will reexamine various measures, including measures to capture demand in such new markets as Southeast Asia, Central and South America, and the Middle and Near East. Based on our conclusions, we intend to take action rapidly.In addition, challenging business conditions are likely to continue due to such factors as the effect of inventory adjustment in the smartphone market on release papers for exible printed circuits (FPCs) cover lay lms. However, we will continue concentrating efforts on membrane production process lms, a new type of functional lm, and other products to create new demand with the potential of forming the future pillars of operations.Business StrategiesYutaka IwasakiExecutive OfcerGeneral Manager, Converted Products Operations, Business Administration Div.This segment comprises Fine & specialty paper products operations and Converted products operations. In the scal year ended March 31, 2016, the business segment recorded net sales of ¥37.4 billion, accounting for 17.8% of the Group’s net sales. Operating income was ¥4.3 billion, or 24.4% of the Group’s operating income.21LINTEC ANNUAL REPORT 2016

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