R&D AchievementsIn the scal year under review, R&D expenses incurred by the Group amounted to ¥7.6 billion. The following is an overview of the principal R&D activities conducted by each operational segment.Printing and Industrial Materials ProductsPrinting and Variable Information MaterialsWe continued with our development of functional label materials designed to meet our customers’ required specications with the aim of supplying label materials for a diverse range of appli-cations precisely when customers need them. We developed a label material suitable for cold environments as low as minus 196°C in medical and pharmaceutical elds. It is intended for displays and management labels on blood and cell samples and vaccines that are preserved in a frozen state. For displays and process management in the distribution, medical and pharma-ceutical sectors, we developed a general-use new label material that allows for variable information print-ing and publishing from small lots. This new product features tolerability of heat, humidity, and alcohol and supports direct thermal printers.Electronic and Optical ProductsSemiconductor-Related MaterialsSemiconductor packages with ip chips connected by bumps (protruding electrodes on the circuit) have come into widespread use as electronic devices such as smartphones have become thinner and achieved higher performance. We enhanced our lineup with back grinding tape that protects wafer surfaces within production processes and can be used with bumps of any height. Meanwhile, we also launched a new backside coating tape for ip chips that supports manufacturing processes. Functional tapes are essential in the production of intelligent sensors and 3D NAND ash memories that use thin wafers, and by bringing such products to market, we play a part in the social development of IoT.Optical Functional MaterialsWe are engaging in the development of adhesives for optical displays. We developed a vehicle display adhesive that prevents the formation of bubbles on plastic and is resistant to heat, humidity, and bleaching; an adhesive that inhibits corrosion of indium tin oxide and other materials used in touch sensors while also cutting out UV and blue light; and a functional adhesive for large-screen televisions. As a result of customizing features to produce superior performance in areas that particular custom-ers require, we are close to the adoption of our specialty light diffusion lms, which control the diffusional eld, in many differ-ent types of reective displays. They have also been adopted as projection screens at airports and other locations. As these screens can be attached to the surface of existing structures, we expect them to be widely used.Through these and other R&D activities, this segment incurred R&D expenses of ¥3.7 billion.Example of light diffusion lm in application (left: looking downwards; right: looking upwards)Reective LCD using LINTEC’s light diffusion lm (right)Commercial and Industrial MaterialsWe are constantly engaged in the development of functional adhe-sive materials for use in many different industries. Using the light diffusion lm technology which we have developed for optical displays, we succeeded in developing vision control lms that are uniquely designed for window glass. With these lms, customers are able to control areas they wish to hide from view without compromising on glass transparency or natural lighting. Because windows appear either transparent or frosted depending on the viewing angle, privacy can be protected while preserving the view from the window. The lms are suitable for use in ofces and shops, as well as on windows, doors and partitions in houses, due to the fact that they reduce the likelihood of fragments scattering if a window is broken and also cut out UV. Through these and other R&D activities, this segment incurred R&D expenses of ¥2.7 billion.31LINTEC ANNUAL REPORT 2017

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