Linkage + Technology

LINTEC

Creating the Future

with Adhesive Technologies

Sep.9, 2013

■Head Office:

Itabashi-ku, Tokyo, Japan

■Security Code:

7966 (Tokyo Stock Exchange, 1st Section)

■Established: October 15, 1934

■Common Stock: 23.2 billion yen (as of March 31, 2013)

■Number of Employees: 4,270 (as of March 31, 2013)

■Net Sales: 190.8 billion yen (as of March 31, 2013)

■Fiscal Year-End: March 31

■Business Activities: Development, manufacture, and marketing of

adhesive products and related equipment,

specialty papers, release papers and films, etc.

■Consolidated Subsidiary: 4 companies (Japan)

1

Company information

20 companies (Overseas)

2

Company history

1934: Establishment of FUJI SHIKO CORPORATION,

1960: Started production and marketing of adhesive papers

and films for labels

Subsequently expanded adhesive operations to such areas

as decorative materials for interior and exterior, motorcycle,

automobile and others.

1984: Developed UV curable dicing tape and made full-scale

entry into field of semiconductor-related products

1987: MADICO, INC. , became a subsidiary

manufacturer of gummed tape (Itabashi, Tokyo)

1990: Merged with SHIKOKU PAPER CO., LTD., and

SOHKEN KAKO CO., LTD.

Name was changed to LINTEC CORPORATION

Expanded business activities from release paper, specialty

papers to the fields of adhesive paper and films, related

equipment

*The name was changed to FSK CORPORATION in 1984

3

1991: Made full-scale entry into LCD-related operations

1993: LINTEC (TIANJIN) INDUSTRY CO., LTD.

was established

1994: PT. LINTEC INDONESIA was established

2000: LINTEC INDUSTRIES (MALAYSIA) SDN. BHD.

was established

2002: LINTEC (SUZHOU) TECH CORPORATION

was established

LINTEC SPECIALITY FILMS (KOREA), INC., was established

2003: LINTEC SPECIALITY FILMS (TAIWAN), INC., was established

2004: LINTEC KOREA, INC., was established

2011: LINTEC (THAILAND) CO., LTD., was established

Company history

4

150.8

212.7

10/3 09/3 11/3 12/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3

7.3

20.9 Net sales

Operating income

Unit: Billion yen

Performance trends ／ Net sales, Operating income

Global

recession

01/3 13/3

The impact of financial crisis in Europe

and the Great East Japan Earthquake, etc.

190.8

10.6

Highest Results on Record

IT recession

5

Overseas

20.8 billion yen

Performance trends ／ Overseas sales

FY2003

Net sales

149.0

billion yen

FY2013

Net sales

190.8

billion yen

Overseas

64.3 billion yen

Japan Japan

Overseas sales have increased 43.5 billion over the last 10 years

with average annual growth of 12.0%.

(Sales in Asia have shown average annual growth of 15.1%)

14.0% 33.7% Ratio of overseas

sales to net sales

Approx. 3.1 times

6

Release paper / film●

Adhesive●

●Surface improvement Printability / imprintability,

Durability, etc.

● Substrate

(Base paper / film)

Me

eti

ng

ne

ed

s w

ith

in

-ho

us

e t

ech

no

log

ies

Basic composition of adhesive products

・Fine and Specialty Paper

Products Operations

・Converted Products

Operations

Core technologies

Surface improvement

１

２

３

４

System development

Specialty papers and

Release materials production

7

Paper and Converted Products

・Printing and Variable Information

Products Operations

・Industrial and Material Operations

Printing and Industrial Materials Products

・Advanced Materials Operations

・Optical Products Operations

Electronic and Optical Products

＋

Adhesive applications

Four core technologies and operational segments

Adhesive

materials

Equipment

●Adhesive papers and films for labels

8

●Main types : Permanent, Removable, Restickable

●Properties : Printability / imprintability, Durability,

Heat resistance, Water resistance,

Cold resistance, Curved-surface adhesion,

Dimensional stability, Design and others.

Printing and Variable Information Products Operations

●Label printing machines, etc.

49.6 billion yen

26.0%

FY2013

Net sales

190.8

billion yen

9

●For commodity items ●For food packaging

●For stationery ●For distribution

・Water resistance

・Curved-surface

adhesion

・Design

・Imprintability

・ Adequacy for

affixing seals

・Cold resistance

■ Usage of LINTEC Label Materials / Required properties

Printing and Variable Information Products Operations

・Water resistance

・Curved-surface

adhesion

・Cold resistance

・Durability

・Dimensional stability

・Design etc.

●For medical and

pharmaceutical ●For industrial

・Printability / imprintability

・Chemical resistance

・Tamper-evident

・Oil- and water-

resistance

・Durability

・Heat resistance

10

Industrial and Material Operations

●Window films

●Films for outdoor signs and advertising

●Interior finishing mounting sheets

●Automobile-use adhesive products

●Industrial-use adhesive tapes

●PV backsheets

●Labeling machines, etc.

33.2

billion yen

17.4%

FY2013

Net sales

190.8

billion yen

●Paint replacement films

for door sashes

11

●Automobile-use adhesive products

Original material design increases

the passage of air and makes it simple to apply

With air bubbles With no air bubbles

●Protection films

for aluminum wheels ●Marking films

●Window films

Industrial and Material Operations

▼

▼

▼

・The sheet protects the back-side of

photovoltaic module

・Desirable features include outside durability,

efficient electricity generation through

high-reflectivity, and high dielectronic performance

12

●PV backsheets

Structure of PV module

(EVA*)

Glass

Backsheet

Light Light Light

Encapsulant Cell (Silicon)

*EVA = Ethylene-Vinyl Acetate ・Strengthen competitiveness to launch next

generation backsheets by new manufacturing method

Our Strategy

Realizing to raise durability and reduce the cost

by adopting non-adhesive structure

Durable fluorine coating layer

Durable fluorine

coating layer

PET film

Adhesive

EVA film

(Conventional Product) (New manufacturing method)

New manufacturing method layer

Durable PET film

Industrial and Material Operations

13

Advanced Materials Operations

●Semiconductor-related tapes

●Semiconductor-related equipment

●Coated films for multilayer ceramic

capacitor production

●Touch screen-related products, etc. 34.0 billion yen

17.8%

FY2013

Net sales

190.8

billion yen

14

Wafer

剥離

■ Manufacturing process for semiconductor chip

【Fabrication】

Single crystal silicon ingot

Wafer following

circuit formation

Back grinding

(wafer thinning)

Lamination of

dicing tape*

Removal of surface

protection tape*

Dicing

(wafer cutting) UV irradiation oｆ tape* Picking up Mounting Molding

Lamination of surface

protection tape*

Wafer following

circuit formation

*Uses of our tapes and equipment

【Back-end process】

Advanced Materials Operations

●Dicing die bonding tape

●Surface protection tape for thin & high-bump wafers

Back grinding process

Surface protection tape

Stress

Wafer

Dispersing the stress

Bump

・Specially designed to prevent thin wafers from bowing

after back grinding.

・Protects the surface of wafers from contamination by

attaching to bumps formed on the surface of the circuitry.

・Prevents wafer damage by dispersing the stress placed

upon wafers during back grinding.

■ Key tape products related to semiconductors

Chips are firmly fixed Adhesive is transcribed to

the reverse side of chips

No need for

paste application during

the mounting process

Dicing process Picking up process Die bonding process

Adhesive Base film Substrate

Wafer

Advanced Materials Operations

15

●Coated films for multilayer ceramic capacitor (MLCC) production

16

Advanced Materials Operations

LINTEC’s coated film Dielectric paste (Slurry) Ceramic sheet

Coating Heat drying

Internal electrode printing Die cutting and releasing Stacking, compression

bonding and cutting

Firing and external

electrode forming

Plating

Forming several hundred

layers in a 1mm square

or less

■ Manufacturing process for MLCC

17

●Touch screen-related products

Optically clear

adhesive sheet

(OCA)

LCD

ITO film

Cover glass

Anti-shatter film

(ASF)

ITO

Polyester film

Hard coat

Hard coat

Hard coat film

for ITO

Cover glass / Touch screen

Polyester film

Hard coat

Adhesive

Structure of ASF

Advanced Materials Operations

Structure of ITO film

This is a hard coated adhesive film designed to

prevent the shattering of glass type touch screen.

This is a hard coated film ideal for the base

material of ITO film.

Primary release film

Adhesive

Secondary release film

Structure of OCA

18

Optical Products Operations

●Polarizing films and retardation films for LCDs

/ Adhesive processing

●Polarizing films for LCDs

/ Surface improvement processing

●Protection films for polarizing films, etc.

38.4

billion yen

20.1%

FY2013

Net sales

190.8

billion yen

●Protection films for polarizing films

Dirt-resistance /

Water-resistance /

Anti-static

Adhesive

19

Surface improvement

Substrate (film)

Adhesive

Adhesive

Adhesive

■ Structure of LCD

Anti-reflection / Anti-glare /

Abrasion-resistance properties

Surface improvement

Light source

Polarizing film

Polarizing film

Liquid crystal cell

Retardation film

Optical Products Operations

20

Fine and Specialty Paper Products Operations

●Color papers for envelopes

●Colored construction papers

●Lint-free paper

●High-grade printing papers

●High-grade papers for paper products, etc.

15.9 billion yen

8.3%

FY2013

Net sales

190.8

billion yen

21

Converted Products Operations

●Release papers and films for adhesive labels

●Release films for optical-related products

●Release papers for FPC* cover layers

●Casting papers for synthetic leather (release paper)

●Casting papers for carbon fiber composite

materials (release paper), etc.

19.8 billion yen

10.4%

FY2013

Net sales

190.8

billion yen

*FPC = Flexible Print Circuit

22

Consolidated financial results for first quarter FY2014

Net sales

Operating

income

Net income

Income

before

income

taxes

FY2014

1Q

results

FY2013

1Q

results

Increase

(decrease)

(Billion yen) (Billion yen)

Net sales Operating income

Income before income taxes Net income

46.9 0.9 2.0％

3.0 0.5 19.3％

3.4 0.8 35.1％

2.4 0.7 38.9％

46.0

2.5

2.6

1.7

2.5

46.0 50.1

3.2

48.3

2.8

46.5

2.1

46.9

3.0

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

1.7 2.6

3.1 2.4

3.1

2.2 2.1 1.3

3.4

2.4

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

23

Net sales / Operating income

by Operational segment

Industrial and

Material Operations

Printing and

Variable Information

Products Operations

Printing and Industrial Materials Products

Printing and

Industrial Materials

Products

Net sales

Operating

income

Increase

(decrease)

Printing and Variable Information

Products Operations sales

Industrial and Material

Operations sales

Segment operating income Segment net sales

(Billion yen)

FY2014

1Q

results

FY2013

1Q

results

(Billion yen)

12.4

8.2

20.6

0.7

0.2 1.9％

(0.7)

(8.4％)

(0.5) (2.2％)

(0.2) (38.6％)

12.6

7.5

20.1

0.5

12.4

8.2

12.8

8.7

12.4

7.9

12.0

8.3

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

12.6

7.5

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

0.7

20.6 21.5

0.8

20.3

0.5

20.4

0.3

20.1

0.5

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

24

8.1

8.7

Electronic and Optical Products

8.6

8.8

16.8 17.5

0.6 1.3

(Billion yen)

Electronic and

Optical Products

Advanced Materials

Operations

Optical Products

Operations

Net sales / Operating income

by Operational segment

Net sales

Operating

income

0.5 5.9%

Increase

(decrease)

0.7 4.0%

0.7 128.6%

0.1 2.2%

Advanced Materials Operations sales Optical Products Operations sales

Segment operating income Segment net sales

(Billion yen)

FY2014

1Q

results

FY2013

1Q

results

8.1 8.7 9.1 10.7

8.4 10.7

8.3 8.4 8.6 8.8

0.6

16.8 19.8

1.1

19.1

1.0

16.7

0.5

17.5

1.3

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

1.3

25

Paper and Converted Products

3.7

4.9

4.0

5.3

8.6 9.3

1.2

(Billion yen)

Paper and

Converted

Products

Fine and

Specialty Paper

Products

Operations

Converted

Products

Operations

Net sales / Operating income

by Operational segment

Net sales

Operating

income

0.3 7.0%

Increase

(decrease)

0.4 9.6%

0.7 8.4%

0.1 11.9%

Fine and Specialty Paper

Products Operations sales Converted Products Operations sales

Segment operating income Segment net sales

(Billion yen)

FY2014

1Q

results

FY2013

1Q

results

1.2

3.7 4.9

8.6

4.0 4.9

8.9 1.3

3.8 5.1

8.9 1.2

4.4 5.0

9.4 1.3

4.0 5.3

9.3 1.3

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

1Q 2Q

FY2014

3Q 4Q

FY2013

1Q 1Q 2Q

FY2014

3Q 4Q

FY2013

1Q

Net sales

26

Forecasts of consolidated financial results for FY2014

Net sales

Operating

income

Net income

Income

before

income

taxes

FY2013

full year

results

FY2014

full year

forecasts

(Billion yen)

2013

190.8 210.0

2014

10.6

15.0

10.8

15.0

7.7

10.5

Operating income

Net income Income before income taxes

Result Unit: Billion yen Forecast

FY 2013 2014 FY

2013 2014 FY 2013 2014 FY

210.0

15.0

15.0

10.5

190.8

10.6

10.8

7.7

FY2014

1Q

results

46.9

3.0

3.4

2.4

46.9 3.0

3.4 2.4

27

Capital expenditure, Depreciation & Amortization, R&D expenses

Result Forecast Unit：Billion yen

Capital expenditure Depreciation & Amortization R&D expenses

11.7 12.3

10.0 10.1 10.1

7.3 6.2

7.2

10.0

2012 2014 2013 FY FY FY 2012 2014 2013 2012 2014 2013

28

● Trend in dividends per share (yen)

Dividend

Result

Forecast

Payout ratio (%) ◆

2007 2008 2009 2010 2011

18

2012 FY

24

20

24 22.2 13.3

19.5

44.6

24.9 29.9 (Forecast)

34

40 40

34.7

2013 2014

42 33.1

All statements contained in this material, such as projected

operating results are based on assumptions regarding

economic conditions, market trends and plans as of the date

of this material.

For various reasons, it is possible that the Company’s future

results, performance, or achievements will differ from the

contents of these forward-looking statements.