AR2017

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Revenues and ExpensesIn the scal year under review, consolidated net sales declined 2.2% year-on-year, to ¥206.0 billion, due mainly to sluggish demand result-ing from an economic slowdown in China and Southeast Asia and to foreign currency translation differences involving a strong yen.Gross prot beneted from a decline in fuel and raw material prices but decreased 1.4% year-on-year, to ¥52.9 billion, due to factors such as lower sales. Operating income declined 6.2%, to ¥16.6 billion, due to costs related to the acquisition of three companies in Europe and the United States and foreign currency translation differences. Prot before income taxes decreased 8.3%, to ¥15.4 billion, due to losses arising from xed-asset disposal and the liquidation of subsid-iaries. Prot attributable to owners of parent increased 5.1%, to ¥11.5 billion, owing mainly to a 30.5% decline, to ¥4.2 billion, in income taxes following the application of tax effect accounting.Net income per share increased from ¥151.07 in the previous scal year to ¥158.69, and ROE rose from 6.4% to 6.6%.Performance by Business SegmentPrinting and Industrial Materials ProductsIn Printing & variable information products operations in Japan, adhesive products for seals and labels were impacted by unseason-able weather conditions for food-use products but sales of medical- and distribution-use products were solid. Overseas, sales were impacted by an economic slowdown, mainly in China.In Industrial & material operations, equipment for mail-order business sold well, but sales of motorcycle- and automobile-use adhesive products and window lms were sluggish due to an eco-nomic slowdown in emerging countries in Asia.As a result of the above, net sales in Printing and Industrial Materials Products declined 2.3% year-on-year, to ¥85.7 billion, and operating income declined 39.9%, to ¥1.7 billion.Electronic and Optical ProductsIn Advanced materials operations, sales of semiconductor-related adhesive tapes and equipment were maintained at the same level as the previous scal year, owing to a recovery in demand for products for smartphones and other devices from the second quarter. Multilayer ceramic capacitor-related tapes experienced a recovery in demand from the autumn but declined year-on-year due to a weak rst half.In Optical products operations, sales of LCD-related adhesive products were low due to sluggish demand for products for large televisions and others.As a result of the above, net sales in Electronic and Optical Products were down 2.6% year-on-year, at ¥83.2 billion, and operating income decreased 13.3%, to ¥9.2 billion.Paper and Converted ProductsIn Fine & specialty paper products operations, sales of mainstay color papers for envelopes were low and there were also declines for construction material papers and oil resistant papers.In Converted products operations, sales of casting papers for carbon ber composite materials were solid for aircraft use. Sales of release papers for FPC cover lay lms and release lms for optical-related products were also steady.As a result of the above, net sales in Paper and Converted Products declined 0.9% year-on-year, to ¥37.1 billion, while operating income rose 34.0%, to ¥5.8 billion.Management’s Discussion and AnalysisNet SalesOperating Income210.5206.020162017Printing and Industrial Materials Products–2.0ElectronicandOpticalProducts–2.2Paper and Converted Products–0.317.716.620162017Printing and IndustrialMaterials Products–1.1Electronic andOptical Products–1.4Paper andConverted Products+1.5Adjustment–0.0¥ Billion¥ Billion(Fiscal years ended March 31)(Fiscal years ended March 31)51LINTEC ANNUAL REPORT 2017FINANCIAL SECTION