【最終】AR2018

15/90

13LINTEC ANNUAL REPORT 2018FINANCIAL INFORMATIONESGSTRATEGYOVERVIEWPerformance Review—Year Ended March 2018Since April 2017, we have been advancing initiatives under our medium-term business plan, LINTEC INNOVATION PLAN 2019 (LIP-2019), which continues through the fiscal year ending March 31, 2020. Aiming to achieve its final quantitative targets, we are accelerating innovation—the plan’s overriding theme—and moving forward with key initiatives.We recorded increases of more than 20% in both net sales and operating income.In the fiscal year ended March 31, 2018—LIP-2019’s first fiscal year—the global economy saw economic expansion in the United States as corporate earnings and consumer spending improved. Europe’s economy also continued recovering modestly. Further, China and other parts of Asia showed signs of economic recovery due to increases in internal demand and exports. In Japan, meanwhile, the economy trended steadily overall thanks to better corporate earnings stemming from robust overseas demand, and to a moderate pickup in consumer spending, which resulted from a more favorable job market.In these business conditions, partly due to contri-butions from three companies in Europe and the United States that were acquired at the end of 2016, the LINTEC Group achieved year-on-year increases of 20.9% in consolidated net sales, to ¥249.0 billion; and 21.1% in operating income, to ¥20.1 billion. Profit attributable to owners of parent declined 1.7% year on year, to ¥11.3 billion, due to the recording in extraordinary loss of provision for business structure improvement of ¥1.0 billion in relation to U.S. manu-facturing subsidiary MADICO, INC., and goodwill impairment loss of ¥1.0 billion incurred by U.S. functional film manufacturer VDI, LLC, which we acquired. The operating profit margin was 8.1%, and ROE was 6.2%.Net sales reached a record high due to contribu-tions from the three companies in Europe and the United States that were acquired at the end of 2016 and a favorable performance by businesses related to semiconductors and electronic components. Operating income increased more than 20.0%. However, our business results revealed issues. From a business portfolio perspective, our results were imbalanced. While businesses related to electronics accounted for the majority of earnings, businesses that normally generate stable earnings flagged against a backdrop of fiercer selling-price competition and higher fuel and raw material prices. Further, the performances of certain overseas Group companies remained lacklus-ter, and as a result of recording extraordinary loss related to these companies, profit attributable to owners of parent declined.Operating Profit Margin / ROE%1086426.26.66.47.25.86.88.18.48.18.1020142015201620172018 Operating Profit Margin ROE(Fiscal year ended March 31)