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15LINTEC ANNUAL REPORT 2018FINANCIAL INFORMATIONESGSTRATEGYOVERVIEWAchievements and Progress of Key Initiatives (1)The Group is implementing regional strategy in Japan, Asia, North America, and Europe.With respect to “Strengthening of regional strategy,” in Japan we continued to advance initiatives aimed at unearthing new demand. Overseas, we are also actively developing markets. In the Southeast Asian market, LINTEC ASIA PACIFIC REGIONAL HEADQUARTERS PRIVATE LIMITED, which is in Singapore, is spearheading efforts to expand and increase the efficiency of operations. In particular, last year we merged LINTEC BKK PTE LIMITED, which was an adhesive products sales subsidiary in Thailand, with LINTEC (THAILAND) CO., LTD., a manufacturing subsidiary in the same country. Going forward, we will introduce high-performance slitting facilities; roll out the products of MACTAC AMERICAS, LLC, an adhesive products manufacturer that we acquired, in the Southeast Asian market; and under-take the new development of local distributors of window films for automobiles. As for the North American market, we will leverage the sales net-work of MACTAC AMERICAS to grow sales of our high-value-added products. Labelexpo Americas 2018, which is to be held in the suburbs of Chicago in September this year, will provide an extremely important foothold for our development going for-ward. In Europe, also aiming to grow sales of the LINTEC Group’s products, we will further strengthen coordination between our sales subsidiary in the Netherlands, LINTEC EUROPE B.V., and the United Kingdom’s LINTEC EUROPE (UK) LIMITED, a sales subsidiary that we acquired.Next, let me turn to the “creation of new value.” In April last year, we internally reorganized the Research & Development Div. and introduced a new R&D scheme. Under the new scheme, the Research & Development Div. and the Sales Div. coordinate more closely at early development stages and con-duct full verifications at key points, thereby prevent-ing setbacks in the development process and ensuring that each theme quickly takes shape with-out fail. Through this scheme, we will accelerate new product development and provide new value that caters to customers’ needs.Achievements and Progress of Key Initiatives (2)We reorganized Group companies in Japan and overseas.Regarding “bolstering the corporate structure,” as a measure aimed at ensuring the soundness of Group companies and a continual increase in earnings, we embarked on a radical management rationalization of U.S. subsidiary MADICO, INC., which was performing poorly. We are taking a range of measures to improve earnings. For example, we have fully withdrawn from PV backsheets, and we are rebuilding the manufac-turing system. Other initiatives included merging two companies in Thailand. In Japan, meanwhile, we merged the adhesive products slitting and processing In May, the LINTEC Group exhibited at Labelexpo Southeast Asia 2018 in Thailand. Targeting the Southeast Asian market, we displayed and promoted the products of MACTAC AMERICAS.

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