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Review of LIP-2016, our previous medium-term business plan We were able to build a platform for future growth even though we fell short of numerical targets.A major achievement of the three years under LIP-2016 was the completion of the Advanced Technology Building, state-of-the-art research facilities in Japan in May 2015. Its large-scale pilot coaters, with their close resemblance to mass-production facilities in our plants, and its cutting-edge analytical equipment have signicantly increased the speed of the product development process. Overseas, we eshed out our production, sales, and delivery network in Southeast Asia and India, and in January 2015 we estab-lished a company in Singapore, LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED, to oversee inclusive overall business strategy planning and imple-mentation in this region. We were also active in strength-ening our business base in Europe and North America with three acquisitions in October–December 2016, buying MACTAC AMERICAS, LLC and VDI, LLC in the U.S. and purchasing stock in LINTEC GRAPHIC FILMS LIMITED in the United Kingdom.However, there were weak performances from some overseas subsidiaries. Reorganization made little head-way at MADICO, INC. in the U.S., and LINTEC (TIANJIN) INDUSTRY CO., LTD. in China, and PT. LINTEC INDONESIA suspended operations for a time due to strike action. We were also affected by an economic slowdown in China and other emerging countries in Asia. As a result, we fell far short of the LIP-2016 targets of ¥240 billion in net sales and ¥20 billion in operating income in the scal year ended March 31, 2017, the plan’s nal year. Overview of LIP-2019 We are building on the previous medium-term business plan’s successes and disappointments as we aim for new goals.The new plan we have drawn up, LIP-2019, reects our desire to learn from the successes and disappointments of LIP-2016 and move on to our next growth stage. Its basic policy is “Deepening innovation aimed at driving new growth.” The key numerical targets are consolidated net sales of ¥270 billion, operating income of ¥25 billion, and an operating prot margin and ROE of more than 9%. The plan has four key initiatives, as shown on the next page.Period: From April 2017 to March 2020Basic Policy: Deepening innovation aimed at driving new growthQuantitative Targets: Major numerical targets in the nal year of LIP-2019, the scal year ending March 31, 2020 (on a consolidated basis)Net sales¥270.0 billionOperating income¥25.0 billionOperating prot marginMore than 9%ROE More than 9%The whole company is working as one to achieve the goals of our new medium-term business plan, LINTEC INNOVATION PLAN 2019 (LIP-2019), which was introduced in April 2017 and continues through the scal year ending March 31, 2020. We will be approaching our tasks in a spirit of innovation and challenge throughout the plan’s three years.LINTEC INNOVATION PLAN 2019 (LIP-2019)11LINTEC ANNUAL REPORT 2017