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Message from the President

Greetings

I am Makoto Hattori and I took office as President and CEO this year. I would like to express our heartfelt sympathy to everyone affected by the novel coronavirus pandemic, and to offer our deepest condolences to all those who lost loved ones in this disaster. I also sincerely appreciate and respect the great efforts made by frontline healthcare workers in fighting against COVID-19. We are now faced with unprecedented hardship on a global scale. Lintec has striven to quickly address the hardship, giving top priority to the safety of our employees and stakeholders.However, there is still no bright prospect in view. To ensure its business continuity, Lintec will continue to work together with all stakeholders to resolve this great challenge. Based on the spirit of the company motto, "Sincerity and Creativity," Lintec has been globalizing its business by offering various products that meet the needs of society and expanding its business scope. I myself have been involved in business operations of the company for nearly four decades, primarily in the field of sales and marketing. Looking back on this period, I realize anew that I always enjoyed freedom and was able to work in spirited manner thanks to the generous support I received from my senior colleagues. Even after I was promoted to a responsible management position, I continued to heed the opinions of various people inside and outside the company, and placed stock in their views in making my own decisions. What has served as a foundation for my final decision-making is the spirit of "Sincerity and Creativity." Now I serve as President and CEO and have serious responsibilities to fulfill, but the aforementioned values and attitudes that I have upheld since my early career will never change. I am determined to listen earnestly to the voices of our stakeholders and to strive to manufacture products that delight a variety of people. While sharing that delight with all stakeholders, and making progress together with them, we strive to achieve sustainable growth.

Makoto Hattori Representative Director, President, CEO and COO LINTEC Corporation Message from the President

First, could you tell us about the business performance for fiscal 2019 and the results of the medium-term business plan, LIP-2019?

Since fiscal 2017, the company has been implementing its threeyear medium-term business plan, called the LINTEC INNOVATION PLAN (LIP-2019), with the objective of deepening innovation with the aim of driving new growth. Although we considered fiscal 2019 important as the final year of LIP-2019, we fell significantly short of the initial targets. The major influential factors for these results were the global economic slowdown due to the USChina trade friction as well as production adjustments in the semiconductor and electronic product-related markets. In fiscal 2019, we launched the global brand "Livasta"* to bolster sales in the domestic and overseas markets for our mainstay adhesive products for labels. Lintec also focused on manufacturing products that contribute to the reduction of environmental impact, by such means as expanding its lineup of adhesive products featuring the plant-derived biomass adhesive. Looking overseas, while steadily enlarging its markets in Asia, in North America the company strived for business restructuring at Madico, Inc. and for business improvement at Mactac Americas, LLC. Although we did not attain the targets set under mediumterm business plan LIP-2019, when looking back on the past three years I think that the company has achieved steady growth. Capitalizing on these valuable achievements, we now renew our commitment to working toward new growth.

* Livasta: Our global brand of adhesive materials for labels. It was launched on July 1, 2019.The brand name incorporates the name "LINTEC" and the words "Value," "Stick," and "Advance." What do you think of the social responsibility to be fulfilled by Lintec?

We will address global challenges through "manufacturing" with a sense of mission,based on the spirit of the company motto of "Sincerity and Creativity."

The global environment surrounding companies is undergoing major changes, not the least being the worldwide spread of the novel coronavirus. The era of passive mass consumption has passed, with the value that society seeks shifting more toward sustainable and recycling-oriented development. To fulfil its corporate social responsibility, Lintec has continuously pushed forward with CSR activities from a global perspective. Our LIP-2019 medium-term business plan has specified "activities for realizing a sustainable society" as one of its key initiatives. The company's CSR activities are based on the spirit of its motto of "Sincerity and Creativity," and these activities to implement the spirit have been widespread not only in Japan but also overseas. One of them is mangrove planting* that we have carried out in cooperation with local residents in Indonesia. We have planted mangroves annually since 2016, and I have visited the planting site in person to participate in this activity. Moreover, we have incorporated the SDGs perspective into our CSR activities. For example, in February 2018, the SDGs Committee was established, with myself serving as the first officer in charge. In this manner, we have been vigorous in promoting activities to make the SDGs part of our corporate management and business. The SDGs Committee is a companywide organization that comprises members selected from a wide variety of sections, regardless of their division and title. These members have engaged in free and frank discussions, through which many ideas have been produced. Meanwhile, the respective business divisions have started initiatives based on their business domains, taking advantage of the technologies and products that they have developed so far. In the future, by combining approaches on these two aspects, we will take more proactive action, including product development that embraces the SDGs as a business opportunity. Among themes related to the SDGs, some may be difficult for the company to address. Examples include the elimination of the use of solvent from a manufacturing process. Nevertheless, we should not avert our eyes from these difficult themes but rather take action step by step to accomplish the targets. I believe that all companies that conduct business must have a social license to operate in order to engage in tasks to address the SDGs. This has something in common with our CSR activities, which are centered on the company motto, "Sincerity and Creativity." By reminding all employees including myself of this spirit, we will contribute to resolving social issues, thereby pressing ahead with the company's distinctive activities that will delight people around the world.

* Mangrove planting: PT. Lintec Indonesia has been carrying out mangrove planting since 2016,in cooperation with its sales office, PT. Lintec Jakarta, local residents, and students of a localfisheries university. Participants in this activity plant mangrove seeds and follow up on theirgrowth through periodic observation of the growing conditions.

Mangrove Planting SDGs Committee members holding a meeting Message from the President

What kind of initiatives are you going to drive forward in order to generate innovation?

To generate innovation, it is essential to create an environment that enables all employees to maximize their abilities. The company will therefore put its energies into establishing flexible organizations that foster employees' positive attitudes.

To bring about innovation by quickly responding to changes in society, it is essential to create an environment that enables each individual employee to maximize his or her abilities. I believe that developing flexible and positive attitudes in employees is truly important.

In this sense, the SDGs Committee, which brings together a diverse group of people transcending the boundaries of their divisions and positions, may provide a clue. We intend to develop an organization that encourages people with different characteristics to work in collaboration toward the goals to be achieved, and that leverages its diversity to create new value. We will continue to promote work style reforms as well as diversity*1 to facilitate the improved performance and active contributions of diverse employees.

The company's Iidabashi Office is scheduled to move to the Bunkyo Kasuga Office in November 2020. In addition to encouraging paperless operations, the new office will introduce a "hot-desking"*2 (or "non- territorial office") system to realize a flexible working style. Going forward, we will also focus on creating a breeding ground for innovation.

*1 Diversity: Diversity means the existence of people in different positions and with different values in a single group. When the diverse characteristics of people and groups are respected, the right people will be able to exercise their abilities in the right place, and problem-solving from a diverse perspective as well as the generation of ingenious ideas will be facilitated. *2 Hot-desking: A work style in which employees do not have their own personal desks in the office, but freely select the desk at which to do their work each day. It is likely to have such advantages as cost savings and improved security, and to prove effective in encouraging communication among employees. Could you tell us about Lintec's long-term future vision for fiscal 2020 and beyond?

We are in the process of preparing a longterm vision for 2030 to steadfastly maintain sustainable growth while flexibly responding to social trends.

In accordance with global changes, value that is sought by society has become diversified, and this trend will be further accelerated in the future. Under these circumstances, to achieve sustainable growth, it is important for the company to flexibly formulate strategies in anticipation of such changes and swiftly put them into practice. The company also needs to establish a long-term goal that can be shared by all employees, to ensure that their efforts are aligned in the same direction. Furthermore, the company should not be shortsighted but should have a longterm perspective in order to develop innovative technologies and products that pioneer new business fields. The company is in the process of formulating a long-term vision toward 2030 as its target year—2030 being the last year by which the SDGs should be achieved. Discussions are currently underway in the company to clearly envisage what the Lintec Group should be like 10 years hence, and determine that ideal as our vision. By compiling specific measures suggested through these discussions, we will also draw up the medium-term business plan for the next fiscal period. We have decided to establish a single-year business plan for fiscal 2020, in line with the new guide to action, "A Year to Gain Foothold for Next Stage of Growth," which positions 2020 as a preparatory period. We will then implement three-year mediumterm business plans from fiscal 2021 as the milestones for achieving the long-term vision. Taking a look back over our history up until today, we can see that the company has developed many epoch-making technologies and products, which range from gummed tape for packaging, adhesive paper, and adhesive films, to semiconductorrelated products. We hope that our next 10 years will prove to be likewise characterized by the development of many innovative technologies and products. Under the long- term vision looking ahead to the future, we intend to drive innovation forward.

Guide to Action for the 127th Fiscal Period

Continue addressing with all Group employees the abiding challenge of creating new value that inspires the future Refine sales, manufacturing, and development capabilities in pursuit of what customers truly need Strengthen initiatives focused on meeting SDGs as a company that resolves a diverse array of social issues Finally, what is your message to stakeholders?

To become a company that can share in the delight with its all stakeholders, we will gather the combined wisdom of everyone and create innovation together with everyone.

When attending in-company meetings, I often hear many people saying, "Let's create products that delight everyone." These are my favorite words, which I myself frequently use. By the word "everyone" here I mean a variety of people, including employees, their families, our clients' customers, end consumers, suppliers, and shareholders. It could even be said that the word refers to all people living on Earth. I also feel that the word "delight" implies significantly diverse value. I believe that the word essentially has something in common with the concept of the SDGs. As stated above, we aim to become a global company that can delight everyone in the world and whose existence is valued by society. To this end, we will gather the combined wisdom of everyone and create innovation together with everyone.

[Profile]

Joined the company in 1980. He has pursued a career primarily in the field of sales and marketing. After having served as Executive General Manager of the Advanced Materials Operations, in 2017 he was appointed the Executive General Manager of the Business Administration Division, which has control over six business segments, before taking office as President and CEO. His motto is "To do the right thing in the right way." As his personal creed, he attaches importance to being humble and making persistent efforts, while always maintaining a sense of gratitude. His hobbies are playing golf (although he says he is"not so good at it") and walking, which he enjoys every morning.

Established in February 2018, the SDGs Committee is a company-wide organization with the objectives of promoting contribution to achieving the SDGs and of creating new business. The previous officer and current officer in charge of the committee talked about its roles and innovation from the perspective of the SDGs.

SDGs—Now an inseparable part of our daily lives and work

Kaiya: It is two years since the SDGs Committee was set up. It feels to me like the past two years have seen social values changing, with public interest in the SDGs increasingly growing.

Hattori: I agree. I think that the general public have also become more familiar with environmental problems than before. One of the notable examples is plastic waste. Commonly found plastic products are used and then discarded as waste, which is getting into the ocean and having significant impacts on marine ecosystems. This problem stems from our conventional consumption-oriented lifestyles, characterized by a one-way flow of resources. Recently, however, changes have been taking place in a shift toward a sustainable, recycling-oriented society. Kaiya: These changes can be observed in the business world as well. In a field that the company is deeply engaged with, a major manufacturer in the autumn of 2019 announced that it would totally abolish plastic

POP labels, a move that attracted much public attention. The purpose was to reduce plastic waste and CO2 emissions from the disposal of waste.

Hattori: Semiconductor manufacturers have also been active in promoting activities informed by the SDGs. These customers require their suppliers, including Lintec, to conduct the same activities, and incorporate environmental protection into their supplier evaluation items. If we lag behind in these activities, it will unfavorably affect our business transactions and may cause us to lose business, depending on the circumstances.

Kaiya: When the SDGs Committee was launched, I myself did not well understand the SDGs. Probably this was also true of many Lintec employees. Nevertheless, the SDGs have recently become a theme that is inseparable from our daily lives and work. What I feel now is that the SDGs will provide us with a new perspective that we can harness to generate innovation within the company.

Creating new business from the perspective of the SDGs

Kaiya: President Hattori, you acted as the corporate officer in charge of the committee for the past two years. What do you think are the major characteristics of the committee?

Hattori: The SDGs Committee comprises members gathered from a wide variety of sections beyond the corporate framework of the company, and each of them has a strong enthusiasm for the SDGs. In this respect, I think the committee is an unprecedented organization in the company. I also find it novel that the committee takes an outreach approach. Specifically, it tries to actively introduce third-party viewpoints by interviewing university researchers and observing facilities in other industries, so as to develop a business model that had not previously existed in the company.

Kaiya: Recently the committee has attracted increasing attention in the company. I have heard that new members joining in fiscal 2020 include many young employees who hoped to participate in the committee voluntarily. Although its activities were previously conducted mainly in eastern Japan, after a subcommittee was newly established in western Japan the scope of the committee's activities was further broadened.

Hattori: To contribute to the achievement of the SDGs, it is important to promote community-based activities in each region. In the future, I am planning to develop these activities as a global corporate group by encouraging the participation of overseas Group companies. Inquiring minds and power to accomplish goals are a driving force for innovation

Kaiya: The company has always assigned the name "LIP" ("Lintec Innovation Plan") to each of its respective medium-term business plans. Despite such naming, I fear that it has become difficult for the company to generate innovation.

Hattori: I feel that way too. We tend to be too obsessed with the conventional technologies and products that we have been developing for many years, making it difficult to take on new challenges. This tendency may narrow our own range of possibilities not only in technological development and product planning, but also in other various aspects of our daily operations. I hope that our employees become aware of this.

Kaiya: I am afraid that there are many cases where even technologies that actually have great potential are buried and unutilized because we cannot come up with new ideas for practical application. It is true that innovation could be generated by introducing external technologies and ideas, but this method involves considerable difficulties around having the innovation take root within the company. We should therefore favor a method of discovering technologies that remain obscure in the company and identifying their new value. It is important to constantly carry out these activities. I consider that contribution to achieving the SDGs will provide us with a new perspective.

Hattori: If I could talk a little about my personal experience, during family conversations we seldom say the word "SDGs." However, when I talk with my family about sorting waste, for example, we often comment on how hard it is to remove the labels from PET bottles. Then a question my family frequently asks me is: "Why can't you resolve this problem with Lintec's technology?" This kind of inquiring mindset is important for bringing about innovation. I would like to create a corporate culture where employees will naturally have conversations like this, both at their workplace and at home. In addition, the power to accomplish goals is another essential element for generating innovation. Remaining committed to activities to help achieve the SDGs, looking at the vision for where we want to be 10 years from now

Hattori: You have taken over my position as the officer in charge of the SDGs Committee as of fiscal 2020. How are you going to conduct the committee's activities?

Kaiya: Well, I feel that contribution to achieving the SDGs is a theme that would assess how seriously a company addresses social issues. Since you have clearly declared that the company will incorporate the SDGs into its corporate management, I will steadfastly maintain your intent.

Hattori: Ever since the inception of the SDGs Committee, I have continued to say these words as the officer in charge. This intent will remain unchanged in the future.

Kaiya: Currently, the company is preparing the long-term vision, looking ahead to 2030. We will henceforth flexibly implement three-year medium-term plans as the milestones for achieving the goals for a decade from now. Likewise, I think that we should also promote SDGs-related initiatives on a long-term basis and in a flexible manner. If we go too fast, our activities will be short-sighted. I essentially believe that we should not take such kind of approach to attaining the SDGs.

Hattori: Exactly. I therefore hope that our employees will work on their daily activities, while always being aware of the vision for where we want to be as a company 10 years from now. This attitude will enable us to generate innovation.

Lintec has set up the Corporate Ethics Committee, the Customer Satisfaction Committee, the Social Contribution Committee, and the SDGs Committee, each of which include an officer in charge, in order to foster high ethical standards and disseminate information on CSR across the company. The officers in charge of the respective committees bring together findings and insights obtained through meetings of each committee, examine them from various angles, and make decisions at meetings of the Board of Directors. This leads to a final decision for the Lintec Group. The CSR in the Lintec Group is built on its company motto "Sincerity and Creativity". All Lintec people are committed to CSR activities with this motto.

Practicing CSR through the Core Business

Many stakeholders support the business of the Lintec Group. To meet these stakeholders' expectations and be trusted by them, all Lintec Group employees actively conduct CSR activities with the company motto "Sincerity and Creativity" at the center and in accordance with "LINTEC WAY" which is an important value supporting the company motto, the Basic CSR Approaches and the Lintec Group Compliance Guidelines.

We continuously promote CSR initiatives on a global basis in line with our policy to promote concerted management as a group under the LINTEC INNOVATION PLAN 2019 (LIP-2019), our medium-term business plan started in April 2017. Viewing business and the promotion of CSR activities as being directly linked, the Lintec Group practices CSR through our core business. In implementing CSR activities, we identify important issues (materiality), set key evaluation indicators*, and strategically apply the PDCA cycle.

* Key evaluation indicators: Evaluation indicators are important indicators of organizational strategies, and quantitatively measure progress toward targets. The Way to Go "LINTEC WAY"

The Lintec Group developed the LINTEC WAY, guidance to be followed by all Lintec people in order to move forward in the same business direction. The LINTEC WAY comprises ten rules as important values supporting the company motto "Sincerity and Creativity" and states the ideal way of being a Lintec employee.

Lintec Group Code of Conduct

Code of conduct

Guided by the Code of Conduct based on the company motto, "Sincerity and Creativity," officers and employees of the Lintec Group shall act in compliance with high ethical standards and social norms.

[ Sincerity at the Lintec Group ]

1. Respect for human rights We respect the human rights and dignity of all stakeholders.

2. Management and utilization of company assets We strictly manage company assets and utilize them according to specific business purposes.

3. Prohibition of acts involving conflicts of interest We will act in the best interest of the Company and its stakeholders.

4. Anti-corruption We shall not offer or accept any entertainment or gifts that may have the appearance of serving as bribes.

5. Compliance with domestic and international law We abide by all applicable laws and regulations as a corporate group trusted by the global community.

6. Fair and transparent transactions In conformity with the competitive order, we conduct appropriate transactions with customers and business partners.

7. Prohibition of Bribery of Regulatory Bodies and Governments We maintain sound relations with regulatory bodies and governments.

8. Policy on anti-social forces We prevent any involvement with anti-social organizations.

[ Creativity at the Lintec Group ]

9. Sustainable manufacturing and service operations We contribute to the resolution of social issues through our products and services. 10. Enhancement of customer satisfaction To enhance customer satisfaction, we are committed to offering high quality and high added value.

11. Symbiosis with the global environment We strive to reduce the burden of our operations on the environment to achieve harmonious existence with the global environment.

12. Sound workplace environment We create a workplace environment where employees can perform at their full potential.

13. Challenge for Creativity We will take on the challenge of creating new value.

14. Social contribution activities As a corporate citizen, we contribute to the development of more affluent regional and local communities.

15. Building a relationship of trust with society We establish relationships of trust with our stakeholders through appropriate information disclosure and dialogue.

Established January 2003 Revised April 2011 Revised January 2020

Participation in UN Global Compact

Having participated in the United Nations Global Compact since April 2011, the Lintec Group conducts business activities based on the following Ten Principles to contribute to the sustainable growth of society.

Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.

Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. ISO26000

ISO 26000 is an international standard that defines social responsibilities of all organizations. By referring to the seven core subjects, the Lintec Group promotes CSR activities.

Seven core subjects

Core subjects in social responsibility Subjects

Organizational governance Decision-making process and structure

(1) Due diligence (2) Human rights risk situations (3) Avoidance of complicity (4) Resolving grievances Human rights (5) Discrimination and vulnerable groups (6) Civil and political rights (7) Economic, social and cultural rights (8) Fundamental principles and rights at work

(1) Employment and employment relationships (2) Conditions of work and social protection Labour practices (3) Social dialogue (4) Health and safety at work (5) Human development and training in the workplace

(1) Prevention of pollution (2) Sustainable resource use The environment (3) Climate change mitigation and adaptation (4) Protection of the environment, biodiversity and restoration of natural habitats

(1) Anti-corruption (2) Responsible political involvement Fair operating practices (3) Fair competition (4) Promoting social responsibility in the value chain (5) Respect for property rights

(1) Fair marketing, factual and unbiased information and fair contractual practices (2) Protecting consumers' health and safety (3) Sustainable consumption Consumer issues (4) Consumer service, support, and complaint and dispute resolution (5) Consumer data protection and privacy (6) Access to essential services (7) Education and awareness (1) Community involvement (2) Education and culture (3) Employment creation and skills development Community involvement and (4) Technology development and access development (5) Wealth and income creation (6) Health (7) Social investment

Materiality means issues that a company should particularly focus on, identified from among a wide range of CSR activities. While the Lintec Group identified its materiality in 2014, the Group has been reviewing its materiality themes in light of ever-changing social issues, and through a series of dialogues with stakeholders. The Lintec Groups is currently at STEP 2 of the reviewing process, with the new materiality incorporating the SDGs point of view. In the future, we also plan to update key performance indicators (KPIs)*.

* Key performance indicators (KPIs): KPIs are important indicators related to organizational strategies, and quantitatively measure progress toward targets.

Five themes of the Lintec Group's materiality (important issues)

Governance Enhance and operate the management system. Operating global governance

The environment Reduce environmental impact and comply with environmental laws and regulations. Effectively using raw materials Reducing atmospheric emissions Making environmental contributions through products and services Ensuring environmental compliance

Labor practices Provide workplace environments where employees can work with peace of mind and ensure the safety of our employees in emergencies. Ensuring occupational health and safety Achieving workplace diversity Improving employee satisfaction

Society Promote stakeholder-friendly global communication. Conducting human rights due diligence Ensuring social compliance Ensuring product compliance Making contributions to sustainable consumption Achieving harmonious co-existence with local communities Contribution to business Promote business models that are friendly to the environment and society, and create businesses that can contribute to solving social issues. Developing business models for local production & consumption in emerging countries Entering new areas

Goals and results of CSR activities by theme

Issues we should Materiality Specific actions work on

Enhance and operate Operating global Governance the management Enhance global governance. governance system.

Procure materials that will help to reduce Effectively using raw environmental impact based materials on the Lintec Procurement Policy.

Reduce emissions into the Reducing atmosphere based on our atmospheric mid-term environmental emissions Reduce environmental impact and comply target. The environment Making with environmental environmental laws and regulations. Develop and spread contributions environmentally friendly through products products through LCA*1 . and services

Ensure and manage Ensuring environmental compliance environmental using the environmental compliance management system.

Conduct activities to ensure Ensuring occupational safety occupational health according to the Provide workplace and safety occupational safety and environments where health management system. employees can work Labor practices with peace of mind and Respect the diversity of Achieving workplace ensure the safety of employees and provide diversity our employees in rewarding workplaces. emergencies. Build working environments Improving employee where employees feel satisfaction motivated to work. Conducting human Respect human rights and rights due determine risks throughout diligence*2 the supply chain.

Ensuring social Instill and ensure group- compliance wide compliance.

Use the quality management Ensuring product Promote stakeholder- system to eliminate and compliance Society friendly global prevent accidents. communication. Making contributions Publicize the effects of to sustainable environmentally friendly consumption products to stakeholders.

Achieving Introduce social contribution harmonious co- activities for local existence with local communities as a good communities corporate citizen.

Developing business Promote business modes that are friendly models for local Conduct R&D for products to the environment and Contribution to production & intended for local society, and create business consumption in procurement and for solving businesses that can emerging countries social issues. contribute to solving Entering new areas social issues.

*1 LCA (Life Cycle Assessment): A method for comprehensively assessing effects on the environment by calculating items

such as the amount of energy and water input, the amount of raw materials used, and the amount of CO2 and hazardous chemical substances emitted throughout a product's lifecycle *2 Human rights due diligence: A process exercised by an organization not only to comply with laws but also to address and reduce the risk of human rights violations (ISO 26000 6.3.3. Human Rights Issue 1) Process of reviewing materiality

We identified and narrowed down important ESG* topics based on STEP1 changes in various international guidelines and frameworks, such as the Identify social SDGs, GRI Standards, the United Nations Global Compact, and ISO demands 26000, as well as on information from ESG rating agencies.

We discuss hypotheses with internal organizations, such as the STEP2 Research & Development Division and the New Project Planning Office, Internal and determine the importance. engagement (Determine priority)

Based on the results of STEPs 1 and 2, we identify key initiatives, and STEP3 have them evaluated by and obtain the approval of the president, the Identify key final decision maker. initiatives

Based on the identified materiality, we set performance indicators for STEP4 our activities and proceed with implementation. Set KPIs again

* ESG: ESG collectively refers to the following three elements: environmental, social, and governance. It is used as an index to judge whether a company can achieve sustainable growth.

Lintec creates varied products in a wide range of fields, including adhesive materials and related equipment, specialty papers, and release papers and films. The company's products play an active role in all areas of life.

Architectural window films

In addition to preventing the scattering/falling of glass fragments when glass is broken, such as in an earthquake, Lintec's window films also provide such features as UV protection, insulation, crime prevention, and privacy maintenance by covering the entire pane of window glass. With a diverse lineup of items, including clear, tinted, and reflective films, the company's window films have recently been gathering considerable attention especially with a view toward safety and energy- saving measures. Marking films

Lintec offers durable adhesive films in a rich assortment of colors and various outstanding features such as weather resistance, heat resistance, water resistance, and oil resistance, making them perfect for applications such as outdoor signs and logos attached to automobile bodies. The company also has a lineup of materials that enable varied visual expressions through large-sized printing. These are used widely for applications such as large advertisements in commercial facilities and vehicle wrap advertising on trains and buses.

Automotive window films

Automotive window film in a wide variety of colors and textures allows drivers to create a posh external appearance and internal space in tune with one's sensitivities. At the same time, excellent insulation performance enables the creation of a comfortable space with improved air conditioning efficiency inside the vehicle. Lintec's broad lineup includes various high-transparency films.

Adhesive papers and films for labels

Lintec has developed and provides a truly diverse range of label materials, from labels for brand display on various products and eye- catching stand-type labels to nameplates an warning labels on automobiles and electrical devices, labels on food packages that can be put into freezers and refrigerators or undergo heat processing, distribution labels suited to barcode printing, re-sealable labels for wet tissue packs, and adhesive memos.

Semiconductor-related tapes and equipment

Lintec has developed a truly diverse range of highly functional tapes such as tape that protects circuit surfaces, which is used in the process of making semiconductor wafers thinner through back grinding after circuit formation; tape that fixes wafers in a ring frame during the process of dicing wafers into individual chips; and tape that contributes to the simplification of the chip mounting and laminating processes by transferring adhesive directly to the back surface of chips after dicing. The company has also developed various electronic devices for attaching and detaching its tapes. LCD films

Lintec conducts adhesive processing to attach polarizing film, phase difference film, and other films that are indispensable components of LCDs, supplies double-sided adhesive sheets for attaching, and conducts glare-proof hard coating of film surfaces to protect display surfaces from scratches and prevent background reflections of fluorescent and other lights.

Coated films for manufacturing multilayer ceramic capacitors

Release film is crucial in the formation of ultra-thin ceramic layers during the manufacturing process for laminated ceramic capacitors, which are incorporated into numerous electronic devices. There is a need to apply a thin and even coat of ceramic dielectric paste and to then remove the film cleanly. The company's products combine the sophistication of Lintec's release technology with precision, thin coating technology.

Casting paper for carbon fiber composite material

Carbon fiber is used in golf clubs, fishing poles, and components of aircraft bodies as a strong and light material. Lintec's release paper products called "casting paper" are used in the process of hardening carbon fiber into sheets with resin. Heat resistance and dimensional stability are important in addition to ease of release.

Specialty papers

Lintec has developed and provides a truly diverse range of specialty and functional papers, including envelop papers in a rich variety of colors in which different textures provide distinctive characteristics; oil-resistant and water-resistant papers for food packaging; washing-resistant paper for cleaning tags; dust-free paper used in clean rooms such as in semiconductor factories; and incombustible paper that has a self- extinguishing feature.

What Is the Lintec Group?

To realize the company motto, "Sincerity and Creativity", the Lintec Group is creating new value by evolving four basic technologies in accordance with the LINTEC WAY and the Lintec Group Compliance Guidelines. The Lintec Group aims for the sustainable development of society by implementing initiatives both in terms of "economic value" and "social value," in line with the Guide to Action for Fiscal 2020, defined as "A Year to Gain Foothold for Next Stage of Growth."

We provide products to which various functions are Sales added to suit the purpose or usage environment, including: adhesive papers and films for labels on household goods, food products and home electronics, tapes for fixing parts of mobile devices, adhesive products for automobiles, industrial barcode printers, labeling machines for automatic labeling, window films for buildings and automobiles, materials for outdoor signage and advertisements, marking films for decorating car bodies, and interior decorative sheets.

We provide products that leverage our unique R&D Sales and technologies, including special tapes for semiconductor chip manufacturing and mounting processes, devices to make the best of these tapes' properties, release films indispensable for laminated ceramic capacitor manufacturing, LED- related adhesive products, and touch screen- related products. We play a part in expanding the IoT* society by providing materials for manufacturing processes used in producing smartphone and other electronic devices and highly functional tapes required for flash memory production.

* IoT: IoT stands for Internet of Things, which collectively refers to a wide variety of "things", such as buildings, appliances, automobiles and medical equipment, connected to the Internet for the purpose of exchanging information. Taking advantage of paper-making technologies, we Sales provide a wide variety of products, including: color envelop paper and color paper in a wide array of colors, function paper including greaseproof paper and dust-free paper for food packaging, high- quality printing paper, and release paper and release film for protecting adhesive coated surfaces, as well as casting paper used when manufacturing synthetic leather and carbon fiber composite materials. Recently, we have developed highly water-repellent yet printable craft paper, which is used for envelopes, wrapping and book printing. We continue to improve our products according to market needs.

Four core technologies

Working with four core technologies (technologies for adhesive applications, for surface improvement, for system development, and for specialty papers and release materials production), the Lintec Group develops differentiated and highly distinctive products by integrating the technologies at a high level.

Adhesive applications

By developing adhesives and various base materials, as well as through their composite technologies, we apply the basic functions of adhesive products (attaching and releasing) to a broader range of areas.

Surface improvement

Through chemical and physical treatment on the surface of paper and film, we improve their performance and add new functions.

System development

In addition to system development for machines and devices, we propose advanced solutions through the establishment of sophisticated systems that take advantage of the properties of materials. Specialty papers and release materials production

By leveraging our unique papermaking technologies and technologies for coating, impregnation, and pasting, we develop paper with special functions beyond those of conventional paper as well as high value-added materials.

Global Network Supports Our Activities

In response to the views of our stakeholders, all employees of the Lintec Group are engaged in CSR activities to help build a better society.

Sales by region

● Sites certified to ISO 14001, the international standard for environmental management systems Japan

LINTEC CORPORATION (Group Companies) Head Office● LINTEC COMMERCE, INC. Iidabashi Office LINTEC SIGN SYSTEM, INC. SHONAN LINTEC KAKO, INC. (Branches) LINTEC SERVICES, INC. Sapporo Branch LINTEC CUSTOMER SERVICE, INC. Sendai Branch PRINTEC, INC. Hokuriku Branch TOKYO LINTEC KAKO, INC.● Shizuoka Branch

Nagoya Branch *1 Shingu Plant and Shigu Plant Tatsuno Office obtained ISO Osaka Branch 14001 certificate as one site. Hiroshima Branch *2 Mishima Plant and Doi Plant obtained ISO 14001 certificate as one site. Shikoku Branch Fukuoka Branch Kumamoto Office

(Plants and Research Laboratory) Agatsuma Plant● Kumagaya Plant● Chiba Plant● Tatsuno Plant● Shingu Plant●*1 Tatsuno Office●*1 Komatsushima Plant● Mishima Plant●*2 Doi Plant●*2 Niihama Plant● Ina Technology Center● Research Center● Asia

LINTEC (SUZHOU) TECH CORPORATION● LINTEC ASIA PACIFIC REGIONAL Beijing Branch HEADQUARTERS PRIVATE LIMITED Shanghai Branch LINTEC SINGAPORE PRIVATE LIMITED● Shenzhen Branch Chongqing Branch PT. LINTEC INDONESIA●

LINTEC PRINTING & TECHNOLOGY (TIANJIN) PT. LINTEC JAKARTA

CORPORATION● LINTEC (THAILAND) CO., LTD

LINTEC ADVANCED TECHNOLOGIES LINTEC INDUSTRIES (MALAYSIA) SDN. BHD● (SHANGHAI), INC. Suzhou Branch LINTEC INDUSTRIES (SARAWAK) SDN. BHD● Tianjin Branch LINTEC KUALA LUMPUR SDN. BHD Shenzhen Branch LINTEC ADVANCED TECHNOLOGIES (MALAYSIA) Chengdu Branch SDN. BHD LINTEC SPECIALITY FILMS (TAIWAN), INC. Kuala Lumpur Office

LINTEC HI-TECH (TAIWAN), INC. Penang Office

LINTEC ADVANCED TECHNOLOGIES (TAIWAN), LINTEC VIETNAM CO., LTD INC● LINTEC HANOI VIETNAM CO., LTD Hsinchu Office LINTEC ADVANCED TECHNOLOGIES LINTEC KOREA, INC.● (PHILIPPINES), INC

LINTEC SPECIALITY FILMS (KOREA), INC. LINTEC PHILIPPINES (PEZA), INC

INTEC ADVANCED TECHNOLOGIES (KOREA), LINTEC INDIA PRIVATE LIMITED INC.

North America

LINTEC USA HOLDING, INC. MACTAC AMERICAS, LLC

LINTEC OF AMERICA, INC. MADICO, INC● Chicago Office VDI, LLC Dallas Office NANO-SCIENCE & TECHNOLOGY CENTER

Europe

LINTEC EUROPE B.V. Hungary Office

LINTEC EUROPE (UK) LIMITED

LINTEC ADVANCED TECHNOLOGIES (EUROPE) GMBH Israel Office

Based on the company motto of "Sincerity and Creativity," the Lintec Group works to contribute to addressing social issues through our core business by incorporating the SDGs into corporate management. Strengthen initiatives focused on meeting SDGs as a company that resolves a diverse array of social issues. For example, one of the items contained in the Guide to Action for the 127th Fiscal Period is "Strengthen initiatives focused on meeting SDGs as a company that resolves a diverse array of social issues." To this end, all employees will continue group-wide efforts. We are also currently preparing the long-term vision for 2030.

Highlight: Dialogue on SDGs To Achieve Sustainable Growth together with Society

What are the SDGs?

Stands for Sustainable Development Goals, which were adopted by the United Nations in 2015. The SDGs comprise 17 goals and 169 targets to be achieved by 2030 as a set of common goals for the international community. To achieve the SDGs by 2030 and thereby realize a better world, various countries and entities around the globe are expected to hold discussions and take action. System to Promote SDGs-related Activities

The Lintec Group believes that SDGs-related initiatives should be undertaken by all employees. The Group established the SDGs Committee to think about a sustainable future and accelerate the creation of businesses that will contribute to addressing social issues. The SDGs Committee is a company-wide organization that comprises members selected from a wide variety of sections, including research, production, sales, corporate strategy, and general affairs. The officer in charge assigned to the committee takes the lead in promoting SDGs-related activities in a responsible manner from a management standpoint.

The Relationship between the Lintec Group and the SDGs

In 2018, the Lintec Group identified the SDGs targets that were closely related to its materiality (important issues), under the initiative of the CSR Management Office and the SDGs Committee. We also verified the corresponding relationships between the SDGs and existing businesses as well as with R&D themes. As for existing businesses, we summarized the positive and negative influences on the company's value chain, in line with the SDG Compass. The Lintec Group understands that we must develop those fields in which we can contribute to addressing social issues through business activities, while seeking radical solutions to reduce the environmental impact of our business activities.

Furthermore, the SDGs Committee will work to create businesses aimed at resolving social issues, in addition to existing businesses, from a broad perspective. Activities of the SDGs Committee

Since February 2018, the SDGs Committee has been studying the SDGs, and has also engaged in a series of discussions on how our Group should work on the SDGs. The committee has considered how our business should look over a long period of time using the backcasting methodology. Team discussions were held to develop the business plans, which are presented once a year to the president and officers. Committee members made such comments as: "Our subcommittee made several visits to an external organization. Although we sometimes face difficulties in forming a network, we can build good relationships by meeting other people, which makes our activities enjoyable" and "I can see how I have grown as a person, as I have learned about the process of finding new business-related items through the committee activities."

Archive : Activities of the SDGs Committee: Addressing Social Issues through Business Archive : Starting the SDGs Committee to Build a Sustainable Future Impressions on serving as an outside advisor to the SDGs Committee

In-house Education about the SDGs

To achieve the SDGs, it is important to not only deepen our understanding of them, but also to obtain knowledge about backcasting and innovation. For this reason, Lintec invites guest speakers to present lectures on a variety of topics.

Titles of lectures held so far (examples):

What makes a good company?-A valuable company that can survive November 2018 the 21st century

June 2019 How to create an organization that achieves innovation

July 2019 Business model innovation

We also provide e-learning programs and put up newsletter posters on the theme of the SDGs. Furthermore, we plan to hold an internal face-to-face workshop on the SDGs for employees, beginning in fiscal 2020. The Lintec Group is working to familiarize all employees with the SDGs and encourage them to engage in SDGs-related activities.

Lintec's Thinking about the Value Chain

Business activities of the Lintec Group have impacts on every link of the value chain. We proactively review and improve business operations nformed by the SDGs at each phase and promote interdepartmental collaboration, aiming at the realization of a sustainable society. We also provide opportunities for dialogue with stakeholders, and reflect the input obtained through these dialogues in our business activities.

Lintec Group's Value Chain and Stakeholder Communication * Modal shift: An initiative to reduce CO2 emissions by changing the mod of transport for passenger or cargo transportation from truck to railway or ship, allowing mass transport Raw material procurement

To meet customer needs regarding delivery dates and product performance, it is essential to ensure close coordination between sales, technology, and quality control sections. In countries overseas, since product life cycles are often very short, if we develop a product at the same speed as in Japan, we may lag other companies. We therefore need to procure and evaluate raw materials that enable a fast development cycle. I think that it is important for technical staff to proactively grasp customer needs. Raising the local procurement ratio will have favorable and synergic effects on other value chain processes (R&D, production, logistics, sales & use, disposal & recycling) in terms of delivery time, foreign exchange risk, and costs. If we place orders for materials with a Japanese supplier, we must allow around two or three months for delivery. Conversely, local procurement will provide great benefits regarding delivery time and costs. However, in countries overseas the attitudes to quality lag those in Japan, making quality control difficult. For this reason, we provide education for local suppliers to help them achieve the same quality level as in Japan. At Lintec (Suzhou) Tech Corporation, staff members in technical, quality control, materials, manufacturing, and production management sections work in close concert to develop products suited to the local market in a speedy manner. This is the strength of our company. I will continue to actively gather information and strive to increase the local procurement ratio and reduce costs.

Takashi Muroi Purchase Section Lintec (Suzhou) Tech Corporation R&D

Individual customers have adopted different policies for reducing environmental impact. To cater to these different policies, we are working on the development of various environmentally friendly products with the keywords of "recycling," "biomass," "biodegradability," and "plastic-free." In fiscal 2019, we developed the KP3802L labelstock, which combines a facestock made from 100% recycled PET resin with an emulsion-type adhesive, and the BF1205 laminate film, which uses PET film with a 20% biomass content. The KP3802L labelstock achieves the same levels of transparency and physical properties as conventional non-recycled PET film-based labelstocks. This new product also helps reduce CO2 emissions by combining its facestock with a solvent-free emulsion-type adhesive. Based on the carbon neutral concept, biomass films and biomass adhesives are also conducive to reducing environmental impact. While we observe a growing trend toward recycling, we have increasing numbers of opportunities to learn about customer requirements for plastic-free products, i.e., switching over from synthetic resin made from petroleum to "paper" made from plant materials. Paper is less resistant to water and more easily torn than synthetic resin. Due to these properties, we review raw materials for paper, and work on the development of adhesive products using paper with high water-resistance. Although biodegradable resin has many problems to be addressed in terms of performance, durability, and cost, we will continue to develop this material, together with suppliers and customers. I believe that the roles to be fulfilled by the R&D section are to provide customers with products that are valuable for them and to offer support for their stable production. Taking general-use adhesive labels as an example, it is important to achieve practical adhesive performance, such as high adhesion and durability. At the same time, these products should have suitability for processing at the customer's site as well as printability on the facestocks. To ensure that adhesive labels will have no adverse effects during the recycling of a final product with an adhesive label attached, our work also includes the selection of adhesives that allow the labels to be easily removed in the cleaning process as well as raw materials that have the same quality as the adherend. In this manner, we strive to develop a product that customers will find valuable by working on raw material design, taking into account the processes involved from the time of product use to disposal. Meanwhile, we promote adjustment and improvement of raw materials through discussions with the plant about how to improve productivity and resolve problems in adhesive processing, in order to ensure stable production. I believe that achieving product quality improvement and cost reductions will lead to an increase in customer satisfaction.

Shinya Suzuki Adhesive Materials Labs Product Research Department Research Center Manufacturing

By conducting on-site information sharing in our daily operation, we can be aware of a problem if a coater or cutter is performing under abnormal conditions. As part of our efforts to maintain product quality, we leave these machines idle for the purpose of quality control. By cleaning, inspecting, and maintaining each facility, we strive to ensure that manufacturing machinery can be operated normally. I make it a rule to visit the production floor every day and talk to individual employees to call on them to strictly observe the rules, since it is important that everyone wears protective gear (gas masks, safety goggles, and solvent gloves). To prevent an environmental pollution incident caused by the spillage of solvent, the plant conducts a spill prevention drill once a year, simulating a situation in which a solvent or waste liquid is found leaking out of a drum. The contents of the drill include exercises to prevent environmental contamination and the reading aloud of the disaster prevention procedures. I also take part in the disaster drill for the entire plant to secure the safety and health of employees working on the production floor. 12 As for problems during the coating and cutting processes, I use P-FMEA* ・FTA* to improve these processes as a measure to avoid the occurrence of such problems, with the cooperation of the sections concerned. Additionally, I work on waste reduction by optimizing the raw material standards (width and winding length) to increase yield.

Hitoshi Harada Second Production Section Agatsuma Plant

*1 P-FMEA︓Stands for Process Failure Mode and Effects Analysis. A technique for identifying factors that may cause a failure in processes involved in production, logistics, etc. and avoiding these potential causes *2 FTA︓Stands for Fault Tree Analysis. A technique used for identifying top-level events and the relationship with their causes, both qualitatively and quantitatively Lintec Group's Value Chain and Stakeholder Communication

The Lintec Group proactively holds dialogues with stakeholders to carry out initiatives that meet social expectations.

Impressions on serving as an outside advisor to the SDGs Committee

In a nutshell, the Lintec SDGs Committee can be thought of as a "sustainable innovation community." I feel that these words well express the true nature of the committee. The characteristics of the committee are that it transcends departmental boundaries, position titles, and gender to bring together a diverse group of employees, and that it actively holds a series of dialogues with various stakeholders from both inside and outside the company in order to embed diverse value in the company. After all, innovation, in short, means the "combination of Mr. Hiroyuki Tada heterogeneous elements." Representative of Sustainability Business The SDGs Committee is likened to an incubator* of value, in which its Research Laboratory members strive for the "creation" of something during the limited period of one year, on the basis of "diversity" and "partnership." I am astonished to see the remarkable growth achieved by each committee member within such a short period. When these members leave the committee and return to their original workplaces, I expect that they will serve as communicators who share the essence of CSR and the SDGs with other employees and raise their awareness. In addition to the SDGs Committee covering the head office area, a subcommittee will be set up in western Japan this year. I think that the committee's future task is to rapidly apply these SDGs activities to overseas sites, so a to develop them into company-wide initiatives on a global basis. For transforming our world as called for by the SDGs, it is crucial to accumulate innovation In actuality, however, many companies and organizations have great difficulties creating innovation. I earnestly hope that the SDGs Committee will break this barrier and demonstrate that CSR is the very driving force behind innovation. This will pave the way for resolving social issues.

* Incubator: A piece of equipment used to house eggs in order to artificially hatch them. Here, the word “incubator” means a place for discovering and cultivating value. SDGs Committee members holding a meeting

Through communication with stakeholders

Lintec embraces occasions to communicate with people in the local community. In fiscal 2019, the company organized various communication events. For example, we held the Lintec Fureai Concert, and invited local residents to watch a baseball game at Tokyo Dome. The baseball game spectator event drew a total of 616 participants living in Itabashi City, including people with disabilities and their caregivers as well as members of a children's baseball team and their families. Aki Hoshino During the event, Lintec employees had opportunities to support the Finance & Accounting Section mobility of people with disabilities. In such cases, we make efforts to Finance & Accounting Department ensure these invitees can fully enjoy the event in comfort by carefully guiding them and talking to them. When seeing them off, we received favorable comments from the invitees, such as "Thank you. I had a great time." We also received a handwritten letter saying "I really want to participate again." For those who are pleased with our support, we will continue devising better ways to bring smiles to the faces of local residents, based on their opinions and comments.

Participants enjoy watching a baseball game at Tokyo Dome To fight the spread of the novel coronavirus, we donated 1,000 sets of masks, 40 bottles of antiseptic solution, and other items to Pinellas County, Florida in the United States, which is where Madico, Inc. is based. At the same time, Madico contacted its suppliers to call for support. In addition, the company preferentially hired the family members of employees who were economically affected by COVID-19. They worked to mass-produce face shields, and 150,000 sets of these face shields Kelli Houdek Human Resources were donated to the county. For this initiative, the local emergency Madico, Inc. rescue team gave us a letter of thanks expressing their sincere appreciation for our company for providing personal protection gear for medical staff in the region. We are proud that our company can help protect the safety of local residents and contribute to the life of the community through the above-mentioned initiative and other support activities. I am greatly delighted that we can form and strengthen special bonds with the local community.

Face shield

Lintec's Approach

"We adhere to the fundamentals of 'manufacturing'. We shall develop, manufacture, and sell 'quality', 'environment friendly', and 'safe' products, and pursue business activities that are trusted by all stakeholders". While upholding this Quality Policy, the Lintec Group is making efforts for improving the added value of our products and services to meet customer expectations.

Materiality KPIs Results★

Number of patent applications (activity 354 applications Entering new areas evaluation) [A]

Number of serious product accidents Ensuring product compliance 0 accidents [C] reported

Number of exhibitions participated in Making contributions to sustainable as an exhibitor in and outside Japan 47 times [A] consumption (activity evaluation)

Organizations covered in Results: [A] Lintec Corp.; [C] Lintec Corp., Tokyo Lintec Kako, Inc.

★ For detailed data, click here Improving Customer Satisfaction

Promoting One-stop Development

Lintec's Research & Development Division promotes "one-stop development," which is an approach whereby product design is performed in consideration of the establishment of the mass production process from the early development stage. In designing products, the division conducts not only small-scale manual experiments, but also large-scale testing. The division is equipped with large test facilities for adhesive coating and silicone coating, and the scale of these facilities is nearly equivalent to that of mass production machinery found in a plant. Capitalizing on these test facilities, the Research & Development Division conducts prototyping with a view to establishing the mass production process. At each stage of product design, verification is carried out using a variety of analytical instruments, including transmission-type electron microscopes. The verification results are fed back to the product design section in short cycles, which leads to faster development of new products and their earlier introduction into the market. In fiscal 2019, the division undertook the development of biomass adhesives and recycled materials, enabling Lintec to expand its lineup of environmentally friendly products.

★ For detailed data, click here

Advanced Technology Wing Large test coaters My Next Stage

In recent years, there has been growing demand for emulsion-type adhesives for environmental reasons. Emulsion-type adhesives* using water as a medium do have some coating-related problems, however, such as cissing and streaking. Reducing these problems was a great challenge for us. We used the test coating facilities for mass production installed in the laboratory to fabricate prototypes in advance of trial manufacturing. Shohei Asaina This enabled us to minimize the time for trial manufacturing at the plant, Adhesive Materials Lab which led to the early release of a new product to the market. Product Research In fiscal 2019, we worked on the development of biomass adhesives and Department recycled materials in order to create more environmentally friendly Research Center adhesives. As a result, we were able to help the company strengthen its lineup of environmentally friendly products at a rapid speed. Going forward, I will make effective use of test coating facilities for mass production, not only for the early launch of new products, but also for adding new functionality and considering the introduction of new coating methods, which will enable us to further improve product quality and productivity.

*Emulsion-type adhesives: Since no organic solvents are used, these adhesives contribute to

conserving fossil resources and to reducing CO2 emissions

Disclosing Product Information

To ensure the safe and secure use of our products by customers, the Lintec Group provides product information through our website and written documents. The information regarding product characteristics is available from technical documents and product specifications that state the product structure and physical property standards. As for confirmation and evaluation of our products, measurers qualified for each test item make measurements in accordance with the Japanese Industrial Standards and other official criteria, and using the company's own measuring methods. We will continue to produce high-quality products and disclose information properly.

Quality Assurance

Lintec Group is based on the company motto "Sincerity and Creativity". Individual employees work on manufacturing with an awareness of quality, the environment and safety. We are taking on new challenges, never satisfied with the status quo, to deliver safer, more reliable products. The Lintec Group continues to address challenges in manufacturing for the future.

Lintec Group Quality, Environmental and Business Continuity Policies

Quality Assurance System

The Lintec Group has established a quality assurance system based on ISO 9001*. In Japan, we have integrated the quality assurance systems of six divisions into a group-wide QMS. As for overseas group companies, the quality assurance system has been set up and put into operation at 11 business sites. We will continue to work for effective QMS operations and work efficiency improvement in order to further enhance our product quality.

Acquisition of ISO 9001 certification

FY2017 FY2018 FY2019

Number of sites certified 19 16 16

Japan 9 5 5

Asia and By region 998 others

Americas 1 2 3

Notes: The number of certifications obtained decreased or increased in a couple of locations as a result of the integration. (In Asia, there was one fewer site since the certification of Lintec BKK Pte Limited [Bangkok] was integrated into that of Lintec [Thailand] Co., Ltd. In the Americas, there is one more site due to the addition of VDI, LLC, which became a subsidiary in October 2016.) * ISO9001: The international standard for quality management systems Quality Incident Prevention and Education

To improve customer satisfaction, it is first important to effectively operate the quality management system as part of our daily routine. What is also important is that employees involved in the respective sales, development, and production processes are well aware of our customers, needs and deliver high-quality products and services to ※ Scope: Lintec Corp., Tokyo Lintec Kako, Inc., Shonan Lintec Kako, customers, so that they can use these products and services with peace Inc., Lintec Customer Service, of mind. Inc. and Printec Corp. To ensure that we can deliver reliable products and services to customers, we implement in-house education programs in a systematic manner. These programs are designed to raise employees' quality awareness and enable employees to deepen their QMS-related knowledge (on the management methods using statistical techniques, development of internal auditors, etc.). By continuing these activities, we aim to further refine our products and services to win the trust of customers.

Ratio of quality accidents

※1 Ratio of quality accidents at Lintec Corp., Tokyo Lintec Kako, Inc. and Shonan Lintec Kako, Inc. ※2 Ratio to the number recorded in fiscal 2010 as 100%. My Next Stage

PT. Lintec Indonesia obtained the ISO 9001:2015 certification in 2017. We are making constant efforts not only for document management and system administration and operation, but also for production process improvement and information sharing. Additionally, we held an ISO workshop taught by an external instructor on January 24 and 27, 2020. We also focus on in-house quality education, with employees demonstrating a Eva Liyana strong desire to participate. Quality Assurance All the employees will work closely together to address various issues, PT. Lintec Indonesia aiming to further develop our systems and improve product quality, to ensure that we can continue to please our customers.

Assessment of health and safety impacts

The Lintec Group handles many materials for industrial products, which relate to a large component of its businesses. Being aware that some of the materials we offer contain hazardous chemicals, we work to ensure that such materials will never affect users, specifically by selecting appropriate raw materials in compliance with standards and guidelines based on the RoHS Directive*, the Industrial Safety and Health Act, and other regulations, while implementing measures to prevent contamination during manufacturing processes. In fiscal 2019, no noncompliance or violation was reported in relation to our business activities.With regard to the newly added restricted substances, we will conduct investigations into substances contained in them, and will consider the use of alternatives if necessary.

* RoHS Directive: Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment issued by the EU Communicating with Customers

Exhibiting at Exhibitions in and Outside Japan

In order to communicate with even more customers, Lintec actively participates in exhibitions held in and outside Japan. In fiscal 2019, Lintec took part in a total of 47 exhibitions and received valuable feedback on its products and technologies.

Exhibited at ECO PRODUCTS 2019

Fiscal 2019 Exhibitions

Japan Outside Japan

LABEL FORUM JAPAN 2019 SEMICON West 2019 (Kuala Lumpur, Malaysia) SIGN & DISPLAY SHOW2019 Philippine Semiconductor & Electronics JAPANTEX 2019 Convention and Exhibition 2019 (Pasay, ECO PRODUCTS 2019 Phillipines) Tokyo International Gift Show Spring 2020 SEMICON West 2019 (San Francisco, U.S.A) All China Leather Exhibition 2019 (Shanghai, China) SEMICON Taiwan 2019 (Taipei, Taiwan) NEPCON Vietnam 2019 (Ho Chi Minh, Vietnam) LABELEXPO EUROPE 2019 (Brussels, Belgium) SEMA Show 2019 (Las Vegas, US) IDTechEx 2019 (Santa Clara, U.S.A.) LABELEXPO ASIA 2019 (Shanghai, China)

Lintec's Approach

Considering all suppliers as "partners who should grow together with Lintec", the Lintec Group strives to establish relationships built on trust with them. When selecting suppliers, we evaluate them appropriately based on the principle of free competition. We engage in fair and transparent transactions, and ensure legal and ethical compliance in our procurement activities.

Materiality KPIs Results★

Conducting human rights due 107 companies Number of responses to supplier survey diligence* [A]

Search system for global raw Developing business models for local Development of a system for material production & consumption in emerging registering local raw materials at sites information countries outside Japan (activity evaluation) management under development [B]

Organizations covered in Results: [A] Lintec Corp.; [B] Lintec Group

★ For detailed data, click here

* Human rights due diligence: A process exercised by an organization not only to comply with laws but also to address and reduce the risk of human rights violations (ISO 26000 6.3.3. Human Rights Issue 1) Fair Transactions

CSR Procurement

Lintec has established the Lintec Procurement Policy, the Lintec Green Procurement Policy, and the Lintec Lumber Pulp Procurement Policy, all of which are based on CSR. Its procurement activities follow the Policies. We request suppliers, on various occasions, to ensure CSR activities from multiple perspectives, including respect for human rights, occupational health and safety, information security, and corporate ethics. In fiscal 2019, we asked 114 companies, which we selected out of roughly 500 domestic material suppliers based on the transaction amount and from the BCP* perspective, to complete a questionnaire, and 107★ of them did so. The survey covered CSR-related items, including legal compliance, prohibition of child labor, and safe/ healthy working environments. Of the survey respondents, we required 10 suppliers to make improvements regarding chemical substances management and costs. We are also using the survey results in supplier evaluation. We will continue to improve procurement activities and enhance cooperation with our suppliers.

★ For detailed data, click here

* BCP stands for a Business Continuity Plan. It is a plan developed in advance to enable the minimization of damage and the continuation or early resumption of business in the event that a company encounters an emergency situation such as an accident or disaster.

Supplier questionnaire survey Questionnaire items (overview)

Corporate Financial status management

Legal compliance / Corporate ethics Labor (respect for human rights, working hours, wages, etc.) Management / Labor BCP Information security

Cost Service Deadline Information provision (information on products, technology, industry, etc.)

Third-party certification (ISO 9001, etc.) Quality Management system (suppliers, raw materials, manufacturing processes, products, etc.)

Third-party certification (ISO 14001, etc.) Environment Chemical substances management system

Environmental Assessment at Suppliers

Lintec asks its suppliers to respond to the supplier questionnaire survey in order to strengthen the relationship of trust we have with our suppliers. The survey is compiled jointly by our Procurement Department, Quality Assurance Department, CSR Management Office, and Environmental & Safety Department. Using the collected responses, we perform supplier evaluations and feed results back to the suppliers. We may request in writing companies with low scores to take improvement measures, or may visit such suppliers to conduct on-site inspections.

In the evaluation regarding the environment, particular importance is placed on the management of raw materials containing hazardous chemicals. We also check the chemical substances management frameworks of suppliers through questionnaire items asking about the presence of chemical substance control systems, raw material lot traceability, etc. Green Procurement

For procurement with lower environmental impact, the Lintec Group is ensuring thorough chemical substance management for raw materials, parts, and secondary materials. We conduct investigations into substances contained not only in new materials that we procure for the first time but also in materials that we have continuously procured in order to ensure compliance with new regulations. In fiscal 2019, we asked suppliers to respond to our survey based on the REACH Regulation*1 (21th and 22th candidate lists) and chemSHERPA*2 (version 2.00), covering around 5,000 raw materials. Together with suppliers, we will continue to promote environmental protection activities and ensure control of chemical substances.

Lintec Green Procurement Policy Lintec Lumber Pulp Procurement Policy Lintec Procurement Policy

*1 REACH Regulation: A chemical substance regulation in the EU on the ""Registration, Evaluation, Authorization and Restriction of Chemicals"". Registration is required when exporting a chemical substance into EU states in quantities of one metric ton or more per year. Notification must also be submitted to the authorities when a chemical substance falling under the category of ""candidate for required authorization"" is present in a product at more than 0.1 percent of the mass of the object. *2 chemSHERPA: A scheme, recommended by Japan's Ministry of Economy, Trade and Industry, for communicating information about chemical substances contained in products. The mechanism is aimed at properly managing chemical substances contained in products across supply chains, from upstream to downstream, to ensure continued compliance with tighter regulations.

Conflict Minerals*

Lintec recognizes that conflict minerals, mined to fund armed conflict, are a serious social problem, and investigates whether materials it uses include metals from mines that serve as funding sources for armed groups. We will continue to confirm that our supply chain is not funding armed groups and conduct procurement management that avoids ]the use of conflict minerals.

* Conflict Minerals: Metals derived from conflict minerals defined in the Dodd-Frank Wall Street Reform and Consumer Protection Act include tantalum, tin, tungsten and gold.

Child Labor/Forced Labor

The Lintec Group is aware of the grave issues relating to child labor and forced labor. As such, Lintec conducts a supplier survey every year to monitor the relevant situation. In fiscal 2019, no risks associated with child labor or forced labor were identified at our business sites and suppliers. BCP with Suppliers

The ability of suppliers to continue their businesses in the event of a disaster is critical for Lintec to secure the stable supply of its products to customers. Lintec conducts evaluation of the suppliers to determine their business continuance ability. Lintec has evaluated suppliers for all products to confirm the following statuses: (1) the stock volumes of the raw materials for Lintec, (2) procurement routes for the raw materials, (3) disaster control measures taken in their production sites and facilities, and (4) availability of a substitute production site.

Lintec also conducted examinations of some suppliers to confirm whether they had BCPs and a management system to implement the BCPs, and whether they had organizations and procedures to cope with an incident*. All our suppliers will be subject to these examinations in the future.

* Incident: a situation which cause or may cause business interruption, disturbance, loss, emergency or hazard.

Lintec's Approach

All employees of the Lintec Group work together under the company motto, "Sincerity and Creativity." To ensure that all employees have the opportunity to engage in equally rewarding work, the group respects the diversity* of its employees and prohibits any kind of discrimination, including that based on race, creed, gender, education, nationality, religion, age, origin, physical disabilities, native inhabitation, immigrant status, sexual orientation, or gender identity. In 2011, Lintec joined the United Nations Global Compact, which seeks to eliminate the use of child and forced labor. The Lintec Group will continue to promote diversity so that all employees can grow through mutual understanding and respect.

Materiality KPIs Results★

(1) Ratio of female managers (1) 13% [B] Achieving workplace diversity (2) Return to work after taking time off (2) 100% [A] for childcare leave

Turnover in three years of employees Improving employee satisfaction 12.6% [A] hired as new graduates

Organizations covered in Results: [A] Lintec Corp.; [B] Lintec Group

★ For detailed data, click here

* Diversity: Diversity means the existence of people in different positions and with different values in a single group. When the diverse characteristics of people and groups are respected, the right people will be able to exercise their abilities in the right place, and problem-solving from a diverse perspective as well as the generation of ingenious ideas will be facilitated. Respecting Human Rights and Diversity

Employment

* Percentage of each gender in management positions. ★ For detailed data, click here

Diversity Committee

Lintec's Diversity Committee has been carrying out activities to realize a workplace environment where a diverse team of employees, who each have different lifestyles and ways of thinking, can exercise their abilities to the full and make active contributions. So far, the committee has held ongoing and constructive discussions to enhance in-company programs and environments for supporting childcare and nursing care of family members. In fiscal 2019, the committee focused on supporting sick or injured employees, and launched a new program to support such employees to ensure that they can continue working while receiving treatment. The related work regulations were also revised. In addition, we made a revision to the Support Programs Guidebook. The committee will promote improved understanding of the details of Support Programs Guidebook, the programs among employees. distributed to all employees Increasing Career Development Opportunities for Female Employees

Based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace (Phase 2), Lintec has established targets for the period from April 1, 2019 to March 31, 2022 to increase career development opportunities for female employees. The company aims to raise the average percentage of females in the total number of new hires (graduates from a junior college or technical college/university/graduate school) to over 35%. The percentage of female employees hired in fiscal 2019 stood at 34.7%. Initiatives are also underway to develop role models for female employees on a continuous basis, setting the target of increasing the percentage of female managers/supervisors by 10% from the fiscal 2018 level by March 31, 2022. In fiscal 2019, the company held a roundtable discussion meeting at which female employees working at the Head Office exchanged views with female managers/supervisors. In addition, we held interviews with young female employees hired at the Head Office (in their fourth and seventh year) on an ongoing basis to support their career development.

Measures to Support the Development of the Next Generation of Children

Based on the Act on Advancement of Measures to Support Raising Next-Generation Children (Phase 4), Lintec has established targets for the period from April 1, 2019 to March 31, 2022 in order to promote measures to support the development of the next generation. We review and advertise company programs to support employees who are raising children on an ongoing basis. To enhance initiatives to support appropriate activities, the company helps employees understand how to use the programs using the Support Programs Guidebook and other tools. Aiming to create a work environment where employees with family responsibilities can continue to make a meaningful contribution, we also provide an opportunity for employees who have returned from parental leave to communicate with their superiors using an interview sheet. To continue to promote initiatives to allow all employees to maintain their health and a sustainable way of working, we encourage the planned use of annual paid leave, looking to narrow gaps in the usage rate by workplace, job category, and person, while considering reviewing and improving operational efficiency, thereby increasing the company's overall usage rate. In fiscal 2019, the percentage of paid leave taken was 66.58% (up 1.37% from the previous year). The work-interval system has been implemented as part of our efforts to build a workplace that enables employee health management and sustainable ways of working. The number of employees who did not have a break of the specified number of hours between the end of one work day and the beginning of the next has been on the decline, indicating increasing recognition of this system among employees.

Revision of work regulations, etc.

Easing requirements for taking time off (for continuous treatment, available Accumulated time off on a day-to-day basis, within the period stated in a medical certificate)

Program to support A newly established program to support sick or injured employees (If sick or injured employees are in need of support in the performance of their work due to a employees in disease or injury that requires repeated or ongoing treatment, they are continuing to work allowed to work shorter hours.)

The above revision was made in October 2019. Respect for Human Rights in Labor Management and Education

The Lintec Group believes that compliance forms a foundation forits activities and thoroughly adheres to both social rules and relevant laws and regulations in and outside Japan. This also applies to the recruitment and treatment of employees. Labor management is performed in accordance with relevant laws. Unfair discrimination, child labor, and harassment are prohibited. Lintec incorporates human rights education into its rank-based training programs. So far, the company has held a training session on the theme "UN Global Compact and CSR," and provided training on sexual harassment and workplace bullying.

Employment of Persons with Disabilities

Lintec provides employment opportunities to persons with disabilities. The full-year employment rate at Lintec for persons with disabilities in fiscal 2019 was 2.2%, satisfy the legally mandated rate of 2.2%.

The Operation Support Office, which was established under the Human Resources Department on April 1, 2015, creates an environment for employees with disabilities to undertake specific tasks requested by individual departments and recruits new employees to support Improved accessibility* in a new operations of individual departments. head office building

Over the five years since the office opened, the office has accordingly expanded its staff numbers from the initial three to five at present. The average number of years of continuous service of staff members exceeds three.Based on the past results, we have begun to introduce the function to other areas, mainly for plant operations.

Employment rate for Persons with Disabilities

FY2017 FY2018 FY2019

Number of 59 63 57 employees

Full-year employment 2.3 2.4 2.2 rate (%)

* Accessibility: Enabling older persons and those with disabilities to have easy access to facilities, products, and services. Job Return Program

In April 2010, Lintec introduced a job return program. Under this program, the company re-hires employees who had retired for personal reasons such as childbirth, childcare, nursing care of a family member, or other family circumstances such as the transfer of spouses to a different work location. In August 2014, we revised re-employment systems, introduced the registration system, and advertised the program to employees. As a result, the number of registrations for the program increased.In fiscal 2019, one registered job return program user was re-hired.

Number of registered Job Return Program Users (Persons)

FY2017 FY2018 FY2019

Registered users 13 16 19 (total)

Employment of Older Person

Lintec continues to offer employment to its retirees. All interested retirees are re-hired, in principle. In fiscal 2019, the Company re-hired 32 out of 37 retirees. Re-hired employees are making meaningful contributions, making use of the skills and experience they have developed over many years.

Number of re-employed retirees (Persons)

FY2017 FY2018 FY2019

Number of mandatory 44 48 37 retirees

Number of retirees 35(80%) 42(88%) 32(87%) rehired (%)

Respecting Human Rights and Diversity

Management Labor Relations

Lintec Forest is the labor union (union shop) organized at Lintec. Lintec Forest and the company engage in labor-management consultations in a way that demonstrates respect for each other's standpoints and promotes constructive discussion for the purpose of resolving issues. Also, for addressing workplace safety issues, the two parties join forces to carry out various activities to achieve zero accidents.

Status of the Lintec Forest

FY2017 FY2018 FY2019

Labor union 2,034 2,057 2,067 members

Average age 38.8 38.7 38.7

Average 9 months 16 8 months 16 17 years service years years years

※ As of the end of the fiscal year. Minimum period of notice regarding changes in service

Employees who receive a transfer order shall leave for their new assignment within two weeks from the day on which the order is issued. In conducting personnel changes, the company takes into account the employee's aptitudes, intent, and physical condition.

Related Data

Employees by region and by gender

(Persons)

Male Female Total

Japan 3,032 670 3,702

Asia 1,095 371 1,466

Other 544 235 779

Total 4,671 1,276 5,947

(Outside Japan: as of December 31, 2019; In Japan: as of March 31, 2020)

Local employees at sites outside Japan

(Persons)

Male Female Total

Total number of 1,738 606 2,344 employees

Total number of local 1,639 606 2,245 employees

Managers* 258 113 371

* Managers: Managers as defined in each country or at each site.

Three-year turnover of employees hired as new graduates ★

(Persons)

New employees joined in 2016 Male Female (group-wide)

Joined 79 58 21

Left 1082

Turnover (%) 12.6% 13.7% 9.5%

※ Non-consolidated data for LINTEC Corporation. ★ For detailed data, click here Number of new hires and retirees

(Persons)

Male Female Total

New hires 86 19 105

Percentage of total employment (%) 3.9 5.4 4.1

Teens 31 1 32

20s 44 17 61

30s 5 0 5 Breakdown 40s 3 1 4

50s 3 0 3

60s 0 0 0

Male Female Total

Retirees 84 12 96

(1) Mandatory retirement 38 3 41

(2) Transfer to a group company / Contract 606 expiration

(3) Voluntary retirement 33 8 41

Teens 4 0 4

Breakdown 20s 15 3 18

30s 8 3 11 Breakdown 40s 4 1 5

50s 1 1 2

60s 1 0 1

(4) Other reason 7 1 8

※ Non-consolidated data for LINTEC Corporation.

Average length of service

Total Male Female

Average length of 18.8 19.4 15.5 service (Year)

Average age 41.1 41.6 38.1

Work-life Balance

Achieving work-life balance is indispensable to help employees perform their jobs with peace of mind and exercise the full range of their abilities. For creating workplace environments where diverse employees can make active contributions and promoting career development, the Diversity Committee has led discussions and the implementation of multifaceted initiatives.

Retirement planning seminar

Lintec has held a retirement planning seminar for employees in their 40s and above. The program aims to provide employees with an opportunity to consider preparing for life after retirement well before reaching the mandatory age, and has been newly included in the annual seminar on systems to re-hire retirees. Through these programs, we will provide appropriate information to help our employees lead a meaningful post-retirement life, despite ever-changing social circumstances.

Employee Support Programs

【Family Care Support】 Family care leave program (up to one year [365 days] in total) Special work hours for employees with family care responsibilities (3 years [1,095 days] in total) Family care time off (10 days/fiscal year, available on a half-day basis) This leave can be taken to care for relatives within the second degree of kinship, including relatives by marriage, who are "in need of care" or "in need of support. Accumulated time off (for family care)(80 days/fiscal year) Unused annual paid time-off can be used for the purpose of providing nursing and other forms of care to family members. This leave can be taken to care for relatives within the second degree of kinship, including relatives by marriage, who are "in need of care" or "in need of support. Providing benefits during family care time-off Providing 30% of standard wages as benefits to employees on family care leave for whom the family care benefit eligibility period set under the employment insurance system has expired, from the day of expiration up to the 365th day 【Parenting Support】 Maternity leave (14 weeks in total before and after birth) Childcare leave Intended for employed parents of a child under one year of age (the period can be extended to the day when the child reaches two years of age, if necessary) Child nursing care time-off program (10 days/fiscal year, available on a half-day basis) Special work hours for parenting employees Intended for parents of a child in or below third grade, mainly for shorter work hours

【Volunteer Support】 Paid social contribution time-off (5 days/fiscal year, available on a half-day basis) Intended for the purpose of participating in local volunteer activities, PTA activities, and other social contribution programs.

Introduction/expansion of the following systems from October 2019

【Support for sick or injured employees】 Program to support sick or injured employees Intended to assist employees in need of support in the performance of their work due to cancer, cerebral stroke, diabetes, hepatitis, or other intractable diseases, or injuries they received during work or on the way to/from work, which require repeated or ongoing treatment. This program allows applicable employees to work shorter hours. Accumulated time off Sick or injured employees can take accumulated time off for continuous treatment on a day-to-day basis, within the period stated in a medical certificate. Use of programs★ Program FY2017 FY2018 FY2019

Family care leave 010 program (persons)

Family care time off 300 (persons)

Accumulated time off 74 89 92 (persons)

Childbirth leave 23 19 20 (persons)

Childcare leave 36 39 41 (persons)

Return to work after taking time off for 100 100 100 childcare leave (%)

Child nursing care time off program 7913 (persons)

Shorter hours/ﬂex 36 45 57 time (persons)

Paid social 21 38 22 contribution time off (total of 54) (total of 71.5) (total of 40) (persons)

Percentage of paid 64.0 65.2 66.5 leave taken (%)

※ Non-consolidated data for LINTEC Corporation. ★ For detailed data, click here

Mental Health Measures

The Lintec Group has introduced a precautionary Employee Assistance Program (EAP)* that provides employees with opportunities to obtain a mental health checkup once a year. Through this checkup, employees understand their own stress level, which is useful for personal mental health management. The manager of each business unit receives the results and analysis for employees in the unit, and takes appropriate improvement measures as needed. In fiscal 2019, the checkup was offered across the Group to a total of 3,660 employees, 94.2% of whom actually had it.The Lintec Group has also set up an employee support hotline to which employees and their families can personally contact and talk confidentially with a specialist about their worries, including physical and mental health, childcare, nursing care, legal issues, or personal finances.

* Precautionary EAP: an employee program that aims to improve productivity through the creation of comfortable workplaces and by focusing on precautions for healthy employees in addition to addressing the concerns of employees who already have a health issue. Precautionary EAP System Overview

Company Vaccination Program

As part of its voluntary employee health programs, Lintec recommends receiving a flu vaccination. The company has introduced the relevant subsidy program offered by the health insurance society to partially bear the expense for employees and their dependent family members. We encourage individual employees to use the opportunity to get vaccinated at a subsidized cost.

Expansion of Eligibility for Breast Cancer Screening

As a measure to support its employees and their families to stay healthy and enjoy a fulfilling life, Lintec offers a range of health checkup plans provided by the health insurance society. Those plans include breast cancer and uterus cancer screenings for female employees and dependent family members aged 35 or older, offered on a request basis, in addition to examinations for lifestyle-related diseases.

Measures against Working Long Hours

Lintec proactively promotes measures to ensure that employees can remain in good health. In order to prevent long working hours and late-night work, which impose an excessive physical and mental strain, we strive to ensure appropriate personnel assignment and the proper sharing of workloads, and that supervisors are responsible for managing the overtime of individual subordinates. In particular, we have introduced no-overtime days set in each workplace, flextime programs, and a discretionary labor system. Additionally, in fiscal 2019 the company adopted a work interval system and a work-from-home system. Work hour management has been enhanced, specifically by expanding the scope to the entire workforce, including executives and discretionary workers, adopting an attendance system that enables detailed labor management, and checking individual requests for overtime on a daily basis. As a result of these efforts, long working hours have been significantly reduced from the previous year. In addition, the Company provides employees with a mental checkup once a year to help them assess their stress level and manage their own mental health. Anti-smoking Initiative

In July 2013, as a measure to improve the health of employees and their families as well as enhance productivity in the workplace, we started to offer health promotion incentives for non-smokers in line with the objective of the Health Promotion Act. To be eligible, employees must be non-smokers or have a record of 60 or more consecutive days of no smoking. A monthly incentive of 3,000 yen is offered based on a self-declaration basis. At the end of March 2019, the percentage of incentive recipients stood at 68.4%, up 10.8% percentage points from the figure of 57.6% recorded in the year of introduction. We will continue with these efforts to provide a work environment that encourages employees to maintain their health.

The Lintec Group prepares educational programs tailored to Employees' work assignments and abilities and strives to develop competent human resources with a global mindset.

Concept of Human Resource Development

Lintec has introduced a human resource development program for the professional development of workers exhibiting "pyramid-shaped" competency, comprising expertise supported by broad knowledge and sense. Rank-based programs are targeted at: new hires, third-year follow-up, fifth-year follow-up, new section chiefs, and new managers. In the theme-based category, we introduced a number of new programs in April 2019, in response to recent changes in the social situation. Specifically, such programs are organized for legal training, retirement planning, harassment prevention to improve the workplace environment, and information security. In addition, correspondence courses for various business skills are provided to mid-level employees and new manager candidates preparing for promotion.

* Career design refers to the planning of one's own career so as to use one's own abilities by taking into account one's own experiences, skills, and ideal future. ★ For detailed data, click here Rank-based Training and Career Planning

Aiming at developing people who can contribute to the growth of the Toward Zero Accidents company and society, Lintec, as part of its human resources training, has introduced company-wide rank-based training programs that allow individual employees with diverse values to realize their personal growth according to the current stage of their career building, starting from training for new employees provided when they join the company. Through the training programs, Lintec supports individuals in both skill acquisition and career design*.

Fiscal 2019 Schedule of Rank-based Training Programs

Fiscal 2019 training details and number of participants

Number of participants Training details (trainee category)

① New managers training (group training) 27 Participants acquire the management knowledge, skills, and practical (New managers) frontline abilities necessary for managers.

② New managers training (correspondence course) 43 Participants acquire the basic business administration knowledge, (New section chiefs) management knowledge, and skills necessary for managers.

③ Fifth-year follow-up training (group training) While looking back on the previous four years, participants affirm their 26 own roles and acquire skills to develop their subordinates, primarily (Fifth-yearemployees) through experience-based learning, since these skills will be further required in the future.

④ Third-year follow-up training (group training) 41 Participants look back their second year and discuss their current (Third-year employees) situations in groups to clarify what they aim to achieve in the future.

⑤ New hires training (group training) Participants acquire business skills and work-related knowledge, along 42 with basic skills specific to their own companies. They get an (New hires) understanding of basic knowledge and occupational theory as members of society and professionals. ⑥ Retirement planning seminar (group training) Participants learn about the financial resources required to maintain 27 their lifestyle after retirement and asset building plans in preparation (Lintec Group employees in for their post-retirement life. This seminar aims to create an their 40s and early 50s) environment for employees to practice sound asset formation while engaging in their work with peace of mind.

⑦ Retirement planning seminar (Videoconference) 208 The same as above. (The same as above)

⑧ Harassment training to improve the workplace environment (group training) 1,376 Participants learn about the impact of various kinds of harassment on (Each business site) the workplace environment. The aim of this training is to create a pleasant and productive workplace environment.

⑨ Information security training (group training) 39 Participants learn about measures for information security and its (Mainly network importance, primarily based on actual examples of routine behavior. administrators)

⑩ Information security training (Videoconference) 454 The same as above. (The same as above)

⑪ Legal training for salespersons (division recommendation) Participants acquire legal knowledge and related skills relating to transactions and contracts. The training is provided for the purpose of 16 preventing salespersons from facing legal problems concerning (Mid-level employees in transactions, breach of contract, and violation of law in relation to their charge of sales) activities and enabling them to deal with the risks of facing such problems appropriately and in a timely manner.

※ In addition to the above list, Lintec offers correspondence training courses for newly appointed managers as well as employees promoted to Grade 5 (group leaders) and Grade 4 (mid-level leaders), and provides language training.

Company-wide rank-based training programs★ Total training hours 11,791.5 hours

Total number of participants 2,299 persons

Average training hours per 5.1 hours person

Notes: 1. The above table indicates non-consolidated data for LINTEC Corporation. However, only the data on the harassment training to improve the workplace environment include the figures for Group companies. 2. Calculated for time-based programs only. ★ For detailed data, click here

Individual Education Programs

CSR Briefing and Information Security Education

Since fiscal 2010, the Lintec Group has hosted various CSR study sessions to share awareness of CSR activities.We plan to revise and publish the Lintec Group Compliance Guidelines in April 2020, which will be followed by a CSR study session.

Global Education

The Information Systems Department introduces the Lintec Standard Package (LSP), a common core system developed in-house for production and sales operations, broadly to business sites in and outside of Japan. The department has provided guidance on the LSP to IT staff from target sites to deepen their understanding and ensure proper, efficient, and stable operation of the system. Going forward, the department plans to host global-scale training programs involving planning, design, development, and other functions, aiming to enhance the system operations across the group.

Information Security Education

Lintec has developed the Information Security Management Rules and conducts a self-check every year at each department based on the Information Security Operational Rules and Internal Audit Checklist. In fiscal 2019, Lintec launched an e-learning program for performing a self-audit of information security as part of its efforts to promote understanding and raise awareness among employees concerning information management. In light of the fact that the posting of inappropriate contents has become a social issue, Lintec provides comprehensive education that includes things to note when using social media in a personal capacity, as well as internal rules on information management. Environmental Education

We provided training to internal auditors at each site using common training materials, with qualified assistant assessors serving as lecturers. With regard to mutual auditors, in fiscal 2019 new auditor education was not conducted. Instead, all qualified mutual auditors received training to enhance their skills through both face-to-face group meetings and videoconferences. In fiscal 2020 and onward, we are planning to implement training for new mutual auditors and training to enhance mutual auditors' skills on an as-needed basis. We also provide external education in order to assign one or more qualified assistant assessors to each business site.

Participants in environmental education in FY2019

Total Invitees Content participants

Awareness training, new employee training, divisional training, transferred employee training, biodiversity Head Office 535 seminar, internal auditor training, mutual auditor training

Awareness training, emergency simulation drills, Agatsuma Plant internal auditor training, mutual auditor training, 2,610 biodiversity activities

Awareness training, chemical substances guidance, Kumagaya Plant internal auditor training, mutual auditor training, 2,336 (Lintec Service) emergency simulation drills, biodiversity activities

Awareness training (EMS, BCMS, safety and health), new employee training, chemical substances guidance Research Center (B-lep), biodiversity activities, ISO 14001 self- 2,606 awareness training, mutual auditor training, emergency drills

Awareness training, new employee training, biodiversity Tokyo Lintec Kako 544 education, mutual auditor training

Awareness training, internal auditor training, mutual Ina Technology Center auditor training, new employee training, biodiversity 336 (nature observation), emergency drills

Awareness training, internal auditor training, mutual auditor training, specific business training, biodiversity Chiba Plant 433 activities, external seminars, emergency simulation drills

Regular awareness training, non-regular awareness training (new employees, transferred employees, new Tatsuno Plant ISO 14001 Chiefs), participation in external seminars, 1,979 specific business training, organic solvents guidance, internal auditor training, emergency drills Awareness training, specific business training, Shingu Plant 390 emergency simulation drills, biodiversity education

New employee training, awareness training, internal auditor training, mutual auditor training, biodiversity education (external seminars, internal workshops), Niihama Plant 233 specified duties training (hazardous materials handling, waste treatment workers, deodorization equipment operation), emergency simulation drills

Awareness training (all employees), new employee Mishima Plant training, biodiversity education, internal auditor (including partner training, mutual auditor training, preparation for 1,553 companies) assistant EMS assessor qualification, emergency simulation drills

Awareness training, biodiversity education, biodiversity Komatsushima Plant activities, internal auditor training, mutual auditor 612 training, emergency simulation drills Lintec Environmental & Safety Information Site

As part of the company's environmental education for employees, Lintec operates the Lintec Environmental & Safety Information site on its intranet to provide to employees updates of information related to the environment, ISO 14001 (activities conducted by Lintec and introduction of the website administrative office), regulations of chemical substances (such as REACH* and information related to other Lintec Environmental & Safety regulations), energy-saving and safety and health. During fiscal 2019, Information Site the intranet site was updated 31 times to share environmental news. Including updates on chemical substance regulations and the like, a total of 41 new and updated items were posted on the site. The site will be updated regularly in order to further strengthen employees' environmental awareness.

* REACH Regulation: a chemical substance regulation in the EU on the "Registration, Evaluation, Authorization and Restriction of Chemicals". Registration is required when exporting a chemical substance into EU states in quantities of one metric ton or more per year. Notification must also be submitted to the authorities when a chemical substance falling under the category of "candidate for required authorization" is present in a product at more than 0.1 percent of the mass of the object.

Technology Familiarity Workshops

The Lintec Group hosts the Technology Familiarity Workshop every year to promote interaction among the R&D, production, and sales divisions in the area of technology. In November 2019, the 70th session was held under the theme of "Lintec's technologies for the future" The workshop was attended by a rough total of 200 employees, including 61 from production and sales divisions. Technology Familiarity Workshops Members from R&D and production divisions gave presentations on advanced technologies being developed by each organization. The speakers and audience engaged in a lively exchange of opinions and shared a wealth of technical information.

Self-motivated Education System

Self-development Correspondence Training Courses

Twice a year, Lintec offers self-development correspondence training courses to interested employees. The Company subsidizes a part of the cost for those who complete a course within a given time frame. There is a wide variety of course content available, such as management, business skills, computer skills, foreign languages, liberal arts, and qualifications certificate programs. The Company will continue offering these courses to encourage employees to keep learning and growing.

Self-development Correspondence Training Course Participants

Total number of participants Completion rate (%) (Persons)

FY2017 235 62

FY2018 241 67.6

FY2019 228 61.4

Language Training

To develop employees who can excel on a global stage, Lintec has introduced a language-training program as a support system for self-motivated study. Employees who want to receive language training apply for the program. Participants are selected by the selection committee from among applicants who obtained a recommendation from their immediate superiors and division general managers. In fiscal 2019, 9 employees received the language training. Although the training time varies depending on each employee's language level, the aim is for participants to reach their target level with about 100 to 150 hours of training. Communicating with Employees

Employee Communication

In commemoration of the 10th anniversary of its founding, LINTEC VIETNAM CO., LTD. hosted a company trip in April 2019, visiting Da Nang in central Vietnam. Participants enjoyed sightseeing at tourist spots, such as Hoi An Ancient Town, which is a World Heritage site located on the outskirts of Da Nang, and the Ba Na Hills theme park, which emulates medieval France. The trip also included a team building training session, as well as a big party held on the second day to celebrate the company's 10th anniversary. Through this trip, all Employees enjoying a company trip employees were encouraged to commit themselves to further self- improvement.

Publication of the Community Magazine

The Lintec Group publishes a quarterly magazine, LINTEC, as a tool for communicating with its stakeholders, in Japanese, English and two Chinese (simplified and traditional characters) languages. The magazine is distributed to all group employees as well as customers, suppliers, retirees, the media, and government offices. Also, Madico and Lintec Advanced Technologies (Taiwan), group companies in the U.S. and Taiwan, issue their own in-house newsletter in PDF format, which is useful in promoting good communication in the workplace.

Community Magazine LINTEC, In-house newsletter of Lintec In-house newsletter of MADICO, INC. published in Japanese, English, and Advanced Technologies (Taiwan), Inc. two Chinese (simplified and traditional) languages. CSR Communication

Lintec recognizes its employees as a major stakeholder, and hosts CSR study sessions as part of its communication with employees. We also raise their CSR awareness by publishing the CSR Report.

The CSR Report was published in seven languages: Japanese, English, Korean, Chinese (simplified and traditional characters), Malay, Indonesian and Thai.

Lintec's Approach

The Lintec Group continues to operate the Occupational Safety and Health Policy, which it established based on ISO 45001.*1 According to the policy, annual safety and health plans are developed. Relevant activities are carried out in accordance with the plans, which set targets and specific activities for individual priority actions. Activity results are evaluated by way of internal audit and management review to assist activities in the following fiscal year.

Materiality KPIs Results★

(1) Number of occupational accidents and accidents (1) 4 accidents [C] Ensuring occupational health resulting in absence from (2) No accidents occurred at five and safety work business sites*2 during the year [C] (2) No occupational accidents

Organizations covered in Results: [C] Lintec Corp., Tokyo Lintec Kako, Inc.

★ For detailed data, click here

*1 ISO 45001: International standard for occupational health and safety management systems *2 Five business sites: Kumagaya Plant, Research Center, Chiba Plant, Shingu Plant, and Komatsushima Plant

Occupational Safety

Occupational Safety and Health Policy

The Lintec Group revised the Lintec Occupational Safety and Health Policy in 2018, in response to the ISO 45001 standard for occupational health and safety published in the same year. In conjunction with this, we revised the Lintec Occupational Safety and Health Manual to provide an appropriate manual and regulations in conformity with the new ISO standard. Mutual safety audits and fire prevention patrol activities are carried out at the corporate-wide level, while annual safety and health plans are developed at individual plants, which implement plan-do-check-act (PDCA) cycles to promote safety activities. Lintec also holds a corporate Safety Convention every year. The convention for 2019 was held at the Mishima Plant in May. The Lintec Group will continue to vigorously conduct activities for accident-free operation.

Lintec Occupational Safety and Health Policy Overview of the Lintec Occupational Safety and Health Manual Annual Safety and Health Plans

Each fiscal year, the Lintec Group formulates annual plans for safety and health activities. The plans indicate top management policies and set priority action items to realize the policies, including safety patrols, risk assessment*, and safety education. More specific activities and targets are set for the priority action items and are reflected in safety and health activities. The results of activities and the progress are reported in the monthly Safety and Health Committee meetings, and all members of the Committee engage in discussions on improvement. By implementing such PDCA cycles that lead to the next round of initiatives, the Lintec Group continues to step up its safety and health activities.

* Risk assessment: Evaluating risks to set safety standards

Annual Safety and Health Plan

Meetings of the Safety and Health Committee

Patrols

Risk assessment* safety education

Inspection and measurement

Inspection planning

Measurement of work environment conditions

Medical checkups

Mental health

Internal audit

Management review

In cooperation with the Tokyo Stationery Industry Health Insurance Society, which Lintec belongs to, the company holds periodic medical checkups. Based on the analysis of the results, each site offers follow-up testing and personal health guidance to employees if necessary. We have established a system that provides all employees with opportunities to obtain mental health checkups conducted by HOKENDOHJINSHA Inc., and offers online services for physical and mental health consultation.

Safety and Health Committee and Health Committee

Every month, the Lintec Group plants in and outside Japan hold Safety and Health Committee meetings, while the Head Office, Iidabashi Office, Osaka Branch, and other business sites having sales departments convene Health Committee meetings. Each of these meetings are attended by representatives of the labor union, and the head of each site acts as the final decision-maker. After risk assessments* and Safety and Health Committee meetings conducted at each business site, employees' opinions submitted at these events are recorded in the proceedings, and relevant information is communicated to all employees.

* Risk assessment: Evaluating risks to set safety standards Committees on workplace safety and health

Committee Invitees Activities

Implement plans Safety and Share information, incl. disaster occurrence, Health Plants, Research Center safety education implementation status, Committee facilities inspection results, feedback and improvements found during patrol

Health Head Office and plants Discuss health, safe driving, and disaster Committee having a sales section prevention activities

Lintec Safety and Health Management System (excluding the head office and sales division)

* Four plants: Agatsuma, Kumagaya, Tastuno, and Mishima

Protection against high-incidence/high-risk diseases related to work duties

The Lintec Group's business unavoidably involves work duties posing high risks of causing disease. Recognizing this, we have established measures to protect employees engaged in such duties from health risks. At worksites where organic solvents are used, for instance, an organic solvent work chief is appointed to provide appropriate work instructions and the work environment is periodically monitored. Related workers are required to receive a special health examination in addition to the standard medical checkup. Measures have been developed for various other special duties carrying high health risks, such as employing legally qualified workers, installing protective equipment, and offering special health examinations. Toward Zero Accidents Resulting in Absence from Work

In fiscal 2019, there was one accident in which a worker was caught in machinery, resulting in a long-term absence from work. For this reason, the number of days of absence from work significantly increased from the previous fiscal year.

Occurrence of accidents resulting in absence from work

FY FY2017 FY2018 FY2019★

Number of accidents resulting in 234 absence from work

Number of days of absence from work 16 177 315

Lintec Corp., Lintec Corp., Lintec Corp., partner partner partner Location of accidents companies companies companies Lintec Corp., Lintec Corp., Lintec Corp., partner partner partner

★ For detailed data, click here

One Million Accident-Free Hours Achieved

In January 2020, the Kumagaya Plant set a record of one million accident-free hours.

Fiscal 2019 accident-free hours achievements (April 1, 2019 to March 31, 2020)

Date achieved Business site

Kumagaya Plant

Chiba Plant

Komatsushima Plant 2020 Mar. Shingu Plant (incl. Niihama)

Research Center

Regular Safety Council Meeting (Kumagaya Plant)

With the aim of preventing on-site accidents involving construction contractors, the Kumagaya Plant holds a periodic safety conference, in addition to safety meetings prior to each construction project. The conference is held in April, July and December every year, giving around 174 internal and external participants an opportunity to exchange opinions on a wide range of safety-related topics. This event chiefly aims to ensure adequate understanding of safety rules, and share information about accidents reported at other companies and safety-related issues identified at sites. The conference helps workers increase their understanding of rules and improve on-site conditions, thereby strengthening safety management. Fiscal 2019 Construction Safety Conferences

Number of Business site conferences Content Participants conducted

Kumagaya Plant 3 174

Komatsushima Plant 5 29 Safety Mishima Plant, Doi 2education 107 Plant

Shingu Plant 1 53

Total 363

Plan for RBA-VAP Audit

The Agatsuma Plant plans to conduct an RBA-VAP audit within fiscal 2020.

Top Management Patrols at Production Bases

In fiscal 2019, the president visited a total of 12 sites, including domestic plants, from September to December to carry out top management patrols. During the inspections, the president called for safety first and talked with numerous employees while touring production floors in order to check on hazardous areas, the progress of improvement measures for issues pointed out during previous patrols, and the implementation of the 5Ss. He also participated in meetings where each site reported their risk assessment* activities, and confirmed that these activities were actively implemented at each plant. Lintec will continue to take improvement measures to address safety-related issues and encourage each plant's efforts to totally eliminate accidents.

* Risk assessment: Evaluating risks to set safety standards

Occupational Health and Safety Training

Lintec offers a variety of safety education and training programs that provide qualifications related to occupational health and safety at educational institutions inside and outside the company. A total of 606 employees, mainly plant workers, have undertaken the various training programs, which include education for foremen, forklift seminars, workshops on handling cutters, KYT leader seminars, and education for team leaders of work related to organic solvents, drying machines, oxygen deficiency, gas welding, etc.

Disaster Control in BCMS

For disaster prevention and mitigation, the Lintec Group practices group-wide BCMS activities based on ISO22301*, and conducts risk assessments, placing top priority on saving human lives. All Lintec sites examine their operations and facilities to identify, analyze and assess risks of damage that may be caused by different types of disasters. It is stipulated in the corporate-wide BCMS activity rules that if it is found that disaster control in a site is not sufficient, the site should plan and take sufficient measures. Moreover, the concreteness and validity of these disaster control measures are checked and improved by carrying out disaster drills.

* ISO22301: An international standard for BCMS that a corporation or organization should follow in establishing and effectively operating a system to prepare for earthquake, fire, trouble in the IT system, financial crisis, bankruptcy of supplier, pandemic, or other natural disaster or accident. Emergency Drills

Each Lintec site carries out emergency drills as part of the corporate- wide BCMS activities, while taking measures to reduce disaster-related risks, including stocking emergency supplies and using satellite telephones to ensure multiple means of communication.

Fiscal 2019 Fire Drills

Number Business site of drills Content Participants conducted

Kumagaya 6 458 Emergency stocks at Iidabashi Office Plant

Komatsushima 14 92 Plant

Mishima Plant, 14 876 Doi Plant

Tokyo Lintec 3 341 Kako Evacuation / Agatsuma Plant 2 1,617 Fire extinguishing Research training, etc. 2 877 Center

Niihama Plant 10 28

Ina Technology 284 Center

Tatsuno Plant 3 677

Chiba Plant 17 221

Shingu Plant 5 527

Total 5,798

※ The above number of drills for Mishima and Kumagaya plants includes departmental drills.

Lintec's Approach

Recognizing that it is part of society and local communities, the Lintec Group is engaged in various initiatives to contribute to society while ensuring harmonious co-existence with society.

Materiality KPIs Results★

(1) Total number of participants Achieving harmonious co- on plant tours (1) 800 persons [C] existence with local communities (2) Implementation of social (2) See below [B] contribution activities

Organizations covered in Results: [B] Lintec Group; [C] Lintec Corp., Tokyo Lintec Kako, Inc.

★ For detailed data, click here

Social Contribution Activities of the Lintec Group

The Lintec Group carries out contribution activities in various communities. In Japan, the group performs the following kinds of activities, some of which are highlighted on these two pages.

Activities by the Entire Lintec Group Volunteer tree planting, blood donation, cleanups, collection of plastic bottle caps and used postage stamps, and donation to the Japan Red Cross, Central Community Chest of Japan, and National Land Afforestation Promotion Organization, contribution to the Green Fund

Support for the Development of the Next Generation Support for Kurarika, offering plant tour, workplace experience opportunity

Support for Sports Sponsoring the Saitama Prefecture Baseball Team, the "Musashi Heat Bears", sponsoring the Komatsushima City team of runners in the Tokushima Ekiden Race

Community Safety Activities Street campaign to eliminate organized criminal groups, an AED* workshop, disaster prevention drill, support to local fire company,sponsoring the Tokushima Smart Driver Safety Rally, the Central Shikoku Region Women's Association for Rehabilitation Aid, fire prevention campaign

Environmental Preservation Participation in NPO Tatsuno Akatombo-wo-fuyasou-kai, firefly preservation project, Tokushima Forestation Association's Mori-he-iko volunteer tree-planting activity, Kumagaya Eco Life Fair, and narcissus bulb planting in Iwai Shinsui Park Support for Persons with Disabilities Friendship concerts, bread sales/purchase by welfare facilities for people with disabilities, sponsoring a charity golf tournament for children with disabilities, inviting disabled persons to a baseball game at Tokyo Dome, visiting workplaces for the disabled, and training on employment of people with disabilities

Support for Community Festivals Hara-machi Gion Festival, Usa Hachiman Shrine, Sengen Shrine Spring and Autumn Festival, Kanai Ichinomiya Shrine Spring and Autumn Festival, Kumagaya Ebisu Commerce Festival, Kumagaya Fan (uchiwa) Festival, Kumagaya Fireworks, portable shrine for three district children's clubs at Rokujo Hachiman Shrine, Rokujo Hachiman Shrine Autumn Festival, Tatsuno City Shingu- cho Summer Festival and Fireworks, Tatsuno City Kamioka-cho Konada Residents Association Summer Festival, Doi-cho Fireworks, Tatsuno Shrine, Oyake Shrine, Kosui (lake) Festival, Suiha Shrine Sukeikai, Mishima Drum Festival, Doi Drum Festival, Enoki Shrine donation, Otsuka Shrine donation, Kasuga Shrine donation, Kogan Temple, Sosa Tulip Festival, Warabi Hata Festival, Awa Dance Festival, Itabashi Fireworks, Itabashi Honcho Kamicho festival donation, Itabashi Citizens Festival, Itabashi Children's Festival, the 39th Asahi Culture Center Festival, contributing money to Suwa Grand Shrine, Higashi Agatsuma Furusato Festival, Tenjin Fireworks, and Mishima Park Cherry Blossom Festival

Donation of Products In-kind donation to preschools and elementary schools

* AED: a medical device designed to return a heart undergoing ventricular fibrillation to its normal condition by applying an electric shock.

Community Support Expenses

In fiscal 2019, expenses for educational support accounted for over half of the total expenses. We also provided support for sports and local communities.

Breakdown of Community Support Expenses Social Contribution Initiatives

Fureai Concert

In October 2019, Lintec held its ninth Lintec Fureai Concert at the Itabashi Culture Hall, inviting persons with disabilities and their helpers living in Tokyo's Itabashi City, as well as people from neighboring areas. A total of about 550 people, including Lintec employees, participated in the concert. The concert program included a dance performance incorporating sign language by children of members of Itabashi "Hohoemi-no-Kai," an association of parents of people with Down syndrome; a chorus by Staff seeing off participants "Harmony Korine" from the Daito Bunka University a cappella club; a jazz performance by "FUN TIME BIG BAND," a group of adults who play big-band music; and a dance performance by a dance team of children living in Itabashi City. We will continue to value opportunities to communicate with local residents.

Support staff

Global Activities

The Lintec Group carries out social contribution activities in locations where it operates. Lintec Singapore Private Limited donated daily necessities, food, and other items to elderly people in neighboring areas through a collaborative event with Lintec Asia Pacific Regional Headquarters Private Limited. Lintec Industries (Sarawak) Sdn. Bhd. planted herbal hedges in a village of the Bidayuh tribe, who are indigenous to the province of Sarawak. The Lintec Group will continue to engage in social contribution activities rooted in the community. My Next Stage

Lintec Advanced Technologies (Taiwan), Inc. has made a social contribution by presenting Christmas gifts and donating used books. In fiscal 2019, our company worked in collaboration with the Li-Shin Foundation to make donations of second-hand goods. This foundation is a public corporation that protects children and women who have suffered domestic violence and sexual abuse, and also provides Pei-Chi Chou employment assistance. Our employees brought in their unneeded Public Relations electrical appliances, kitchen utensils, and clothing, and donated a total of Department ten containers of these items, including 37 kitchen utensils, 22 electrical Lintec Advanced appliances, 70 pieces of clothing, and 14 bags. We also purchased 16 boxes Technologies (Taiwan), Inc. of handmade cookies made by recipients of the foundation's support. This donation program enabled us not only to recycle unwanted items, but also to contribute to saving resources and environmental protection. Through this program, we realized that we can implement CSR activities in various forms. We hope to do something to help others. The feeling that, even if our contribution is small, by actually practicing philanthropy we can please others made me happy.

Donating electrical appliances, kitchen utensils, and clothing collected from employees to the Li-Shin Foundation

Social Contribution Initiatives

Beautification Projects and Cleanups

The Lintec Group carries out neighborhood beautification projects and cleanups around all its factories. For example, the Agatsuma Plant cleaned and beautified the Mt. Iwabitsu trail route, and the Tatsuno Plant did the same for the Ibogawa riverside. Other plants also carry out cleanups in areas around their sites. In fiscal 2019, a total of 3,120 employees of domestic sites participated in these activities. Other plants also carry out cleanups in areas around their sites.

Mt. Iwabitsu trail route cleanup Ibogawa riverside cleanup (Tatsuno Cleanup in areas around the plant site (Agatsuma Plant) Plant) (Komatsushima Plant)

Fiscal 2019 community cleanups

Business site Date Content Participants

Picking up trash around the Twice a month 48 plant Agatsuma Plant Mt. Iwabitsu trail route Nov. 28, 2019 18 cleanup

May 30, 2019 Arakawa riverside cleanup 150 Kumagaya Plant Nov. 10, 2019 Arakawa Clean Aid 27

Picking up trash on public Research Center 8 times a year roads around the Research 1,040 in total Center Cleaning up in and outside the properties (In addition to daily cleanups Apr. 2019 – Mar. of the parking areas on the Tokyo Lintec Kako 2020 (once or 507 in total premises, the company twice a month) cleaned the parking areas outside the premises on May 13, 2019.)

Midori Daira Industrial Park May 22, 2019 6 Zero Trash Campaign Chiba Plant Undergrowth cutting in Jul. 30, 2019 3 Jingujihama

Once a month Cleaning up around the plant 400 Tatsuno Plant Nov. 15, 2019 Ibogawa riverside cleanup 50

8 times a year Cleaning around the plant 443

Shingu Plant Ditch cleanup around the May 9, 2019 13 plant(Tatsuno Office)

May 18, 2019 Grass cutting around Doi plant 22

Ditch cleanup around the May 14, 2019 6 Mishima plant

May 19, 2019 Drain cleaning Tateishi area 2 Mishima Plant Sangawa Toyooka Kaihin Park Jun. 30, 2019 2 beach cleanup

Picking up trash on the public Tuesdays 100 in total roads around the plant

Bountiful Sea Cleanup Campaign May 18, 2019 67 (hosted by NPO Tokushima Kaiseikai)

Gomi-zero-no-hi (zero waste Komatsushima Plant May 20, 2019 40 day) campaign: road cleanup

Refresh Setouchi (beach Jun 18, 2019 45 cleanup)

Jul 7, 2019 Nakagawa riverside cleanup 24

Cleanup of the commuting Ina Technology Center 6 times a year route between the plant and 107 in total Shiku Station

Total 3,120 Blood Donation

The Lintec Group conducts blood donations at all its business sites across Japan in cooperation with the Japanese Red Cross.As a social contribution activity that can be performed right at the worksite, blood donation has been embraced by employees, and the program will be continued.

Fiscal 2019 Blood Donation Results

Business site Times Held Participants

Mishima Plant 2 46

Komatsushima Plant 2 26

Tatsuno Plant/Shingu 250 Plant

Research Center 1 48

Chiba Plant 2 33

Tokyo Lintec Kako 2 5

Kumagaya Plant 2 80

Agatsuma Plant 2 103

Ina Technology Center 1 22

Osaka Branch 2 16

Iidabashi Office 1 42

Head Office 1 37

Total 20 508

Community Safety Activities

In October 2019, Kumagaya Plant participated in the incipient firefighting training event hosted by the city government, marking its 13th participation. This regional event is organized every year to increase the fire protection capabilities of local business sites, inviting them to demonstrate practical skills in handling extinguishers and other equipment as well as in incipient firefighting.

Incipient firefighting training event Support for Persons with Disabilities

In September 2019, Lintec invited persons with disabilities and their helpers living in Tokyo's Itabashi City (166 in total) to a professional baseball game held at Tokyo Dome between the Hokkaido Nippon-Ham Fighters and the Tohoku Rakuten Golden Eagles. This was the 13th such event arranged by Lintec. In return, the company received smiles and many words of thanks from participants, who expressed both their gratitude and enjoyment. "Thank you very much. I look forward to this event every year," said one. Lintec will continue to engage in social contribution activities to bring smiles to local residents.

Going to a professional baseball Volunteer staff game

Support for Local Festivals

Every year from July 20 to 22, the Fan (uchiwa) Festival is held in the city of Kumagaya, where the Kumagaya Plant is located. The festival begins with the Togyo-sai, in which a portable shrine departs from Yasaka Shrine to make a 10.5 km-long procession that lasts for about three and a half hours. In the Junko-sai on the second day, 12 festival floats from each town line up and parade through the city. The festival's climax comes in the third evening, when all the floats march down the streets, competing with one another in terms of their musical and other Festival fans donated by Lintec performances (called "Hikkawase Tatakiai"). Subsequently, the festival concludes with the Kangyo-sai, the solemn procession for returning the portable shrine to its home. As one of the sponsors of the festival, the Kumagaya Plant donates Japanese fans to Yasaka Shrine, which are then distributed to visitors.

Participation in Local Festivals

On August 12, 56 employees from the Komatsushima Plant took part in the Awa Dance Festival held in Tokushima Prefecture. The Awa Dance Festival, which is a nearly 400-year-old tradition, is one of the biggest summer festivals in Japan. Old and young, men and women alike parade through the streets in groups called "ren" made up of a few dozen people, dancing to the musical accompaniment of shamisen, flutes, cymbals, and drums. Every year, the Komatsushima Plant forms a Lintec Ren of volunteers that help enliven the festival. Komatsushima Plant employees participating in the Awa Dance Festival

Social Contribution Initiatives

Developing Next Generation of Leaders

Development of the next generation is an important theme for Lintec as a company developing new products with its proprietary technologies. Lintec sponsors Kurarika, a science program for children operated by the Tokyo Tech Alumni Association. Kurarika instructors visit community centers and local children's centers across Japan. In fiscal 2019, 501 classes were held, attracting a total of more than 13,000 participating children. Lintec's contribution was used to purchase workpiece and experimental teaching materials for 15 classrooms in 6 prefectures: Tokyo, Chiba, Shizuoka, Aichi, Osaka, Hiroshima. We will continue to sponsor and support this program, wishing to help many children develop desirable scientific mind and curiosity.

Lintec's activity is also introduced on Kurarika website. Kurarika website (Japanese Version only)

Measures against the Novel Coronavirus

As the novel coronavirus (COVID-19) pandemic continues to spread, the Lintec Group has been taking measures, such as prohibition of business trips and implementation of remote working, in response to the changing situation. In April 2020, LINTEC Corporation and Printec, Inc.* produced 100 sheets for floor marking that calls for social distancing and 3,000 sheets of stickers that recommend take-out dining, and gave these products to Itabashi City for free. In addition, we donated 10,000 sets of face shields to Itabashi City in May. These donated products were effectively used by medical institutions, restaurants, and other facilities in the city.

Face shield Sticker to recommend takeaway

* Printec, Inc.: A Lintec Group company in Japan Communicating with Local Communities

Offering Plant and Facility Tours

Every year the Lintec Group accepts numerous students, local authorities, NPOs, and community residents for tours of its plants and facilities in Japan. In addition to social studies and environmental learning for elementary school students, career opportunity presentations are given to high school and university students. In fiscal 2019, a total of 800 visitors were welcomed at four Lintec sites.

(Overseas Group companies are excluded.)

A plant and facility tour in fiscal 2019

Business site Date Content Participants

Ehime Prefecture Kawanoe Jul. 11, 2019 67 Senior High School

Ehime Prefecture Doi Senior Jul. 2, 2019 67 High School

Shikokuchuo City Association of Public Elementary and Mishima Plant Aug. 7, 2019 26 Junior High School Vice- Principals

Oct. 29, 2019 Shohaku Elementary School 92

Ehime Prefecture Kawanoe Jul. 30-Aug 1, Senior High School (for 2 2019 internship)

Warabi City Chuo Higashi Oct. 16, 2019 59 Elementary School

Warabi City Chuo Elementary Oct. 24, 2019 68 School

Warabi City Minami Oct. 30, 2019 95 Elementary School Tokyo Lintec Kako Warabi City Kita Elementary Nov. 12, 2019 107 School

Warabi City Tsukagoshi Nov. 13, 2019 79 Elementary School

Warabi City Nishi Elementary Nov. 22, 2019 70 School

March 2020 new high school Agatsuma Plant Jul. 25, 2019 24 graduates-to-be Welbe Himeji (a facility to Mar. 25 2019 assist persons with disabilities 5 in finding employment)

Welbe Himeji (for hands-on Jul. 22-26, 2019 1 training)

Dec. 12, 2019 Institutional investors 2

Tatsuno Kita Senior High Aug. 20-22, 2019 3 School (for internship) Tatsuno Plant Tour to Manufacturing Companies conducted by Dec. 9, 2019 Tatsuno Chamber of 28 Commerce and Industry (for plant tour)

Tatsuno Higashi Junior High Nov. 11-15, 2019 4 School (Trial Week program)

Welbe Himeji (for hands-on Nov. 25-29, 2019 1 training)

Total 800

Communicating with Shareholders and Other Investors

Dialogue with shareholders and investors

Lintec carries out various IR* initiatives with the aim of achieving appropriate share pricing and increasing corporate value. The Company holds IR meetings and gives media interviews each quarter in addition to organizing semiannual business results briefings for institutional investors and securities analysts in Japan. For institutional investors outside Japan, Lintec offers telephone conferences and participates in IR events in Japan arranged by securities companies, while making regular overseas visits. In order to help a broader range of investors understand Lintec, the company also holds briefings for individual investors as appropriate. Additionally, we publish a quarterly shareholder magazine, WAVE, and perform a reader survey on a regular basis, feeding back collected responses to management. In addition to the above, we work to enhance public relations tools, such as our IR website and Integrated Report, aiming to help a broad range of investors gain a better understanding of Lintec.

* IR stands for investor relations and refers to corporate activities through which companies provide corporate information in an appropriate, fair and ongoing manner for shareholders and investors to use when making investment decisions.

Shareholders and investors information

In order to better understand the expectations of society, it is essential to have continual communication with stakeholders. Therefore, in addition to providing information, the Lintec Group works to maintain a dialogue with its stakeholders.

Communicating with Customers

Lintec makes use of a variety of opportunities to communicate with customers, including through products and services, sales activities, manuals, MSDSs, points of contact for inquiries, websites, and exhibitions. Through this communication, the company aims to improve its products and services, build relationships of trust, and improve customer satisfaction.

Exhibiting at Exhibitions in and Outside Japan

Communicating with Suppliers

Lintec utilizes a variety of opportunities to communicate with suppliers, including through purchasing activities, briefings, and questionnaires. Through this communication, the company aims to achieve fair transactions and mutual understanding, to ensure compliance, and to build relationships of trust.

Communicating with Employees

Lintec uses a variety of opportunities to communicate with employees, including through business activities, educational programs, briefings, social get-togethers, the intranet, and company newsletters. Through this communication the company aims to create workplaces where all employees can work with satisfaction based on the company motto.

Publication of the Community Magazine／CSR Communication Communicating with Local Communities

Lintec makes use of a variety of opportunities to communicate with local communities, including through plant and facility tours, opinion exchange meetings with local governments, social contribution activities, websites, and company brochures. Through this communication, the company aims to foster mutual understanding with community residents and give back to local communities.

Offering Plant and Facility Tours

Communicating with Shareholders and Other Investors

Lintec utilizes a variety of opportunities to communicate with shareholders and investors, including through shareholder meetings, business results briefings, IR meetings and company information sessions. We also use websites and shareholder correspondence to enhance information communication activities, aiming to help stakeholders deepen their understanding of our corporate activities, thereby achieving appropriate share pricing and building relationships of trust.

Dialogue with shareholders and investors

Communication with the Media

Lintec uses a variety of opportunities to communicate with the mass media?and by extension society? Including through the acceptance of requests regarding news coverage and the writing of manuscripts, responding to questionnaires, websites, and news releases. Through this communication, the company aims to disclose information with integrity to society and build relationships of trust.

Media Relations

In addition to distributing news releases on new products and events to various media outlets, the company welcomes requests for interviews as well as articles written by Lintec representatives. In fiscal 2018, the Company issued about 20 releases and granted about 50 requests for interviews and articles.

Communication with Local Governments

Lintec actively collects legal and regulatory information related to businesses operated in each country and develops appropriate systems. Also, to promote social contribution activities for local communities, we communicate and cooperate with relevant governments in various ways.

Communication with Students/Industry-Academia-Government Collaboration

The Lintec Group participates in joint research projects involving the industrial, academic, and government sectors. Through these activities, we bring together technical and non-technical insights from inside and outside of the group to explore possibilities in various fields. Communication with NGOs/NPOs

To promote social contribution activities, Lintec communicates and collaborates with NPOs and NGOs working to solve various social and environmental issues, thereby participating in efforts aimed at creating a better society.

Social Contribution Initiatives

Main Awards for Activities

Agatsuma Plant Agatsuma Association for Safety of Hazardous Materials: "Outstanding Hazardous Materials Officer Award"

Tatsuno Plant Tatsuno City Private Fire Brigade Competition: Ranked third in fire hydrant category; ranked third in fire extinguisher category Challenge 100 Campaign: Three teams

Mishima Plant Pulp & Paper Industrial Association: Superior Employee Award Shikokuchuo Chamber of Commerce and Industry: Superior Employee Award

Ina Technology Center 28th Ina-machi Indoor Firefighting Competition: Ranked second

Head Office Tokyo Metropolitan Government: 2019 certification for sports promotion efforts Japan Sports Agency: 2019 certification as a Sports Yell Company

Under the slogan, "We have to broaden our scope when working to support the environment. There is only one Earth", Lintec has established, operates and is constantly improving its environment management system, and is carrying out a variety of environmental protection initiatives.

Lintec Group Quality, Environmental and Business Continuity Policies

The Lintec Group sets forth its Basic Policy in the Lintec Group Quality, Environmental and Business Continuity Policy. To practice specific activities, the Group has drawn up a Quality Policy, Environmental Policy, and Business Continuity Policy, as well as Action Guidelines for each. For climate change mitigation and adaptation, based on the Action Guidelines for Environmental Policy, we promote the development of environmentally friendly products at the research division, and work to reduce VOC* and CO2 emissions, energy (electricity and fuel) usage, and waste discharge, among others, at the production division.

Lintec Group Quality, Environmental and Business Continuity Policies

* VOCs: VOCs stands for volatile organic compounds. VOCs collectively refers to organic compounds that become gas in the atmosphere.

Medium-Term Targets (2017 to 2019) and Results

With regard to CO2 emissions and electric power consumption, the amount of self-generated electricity increased from 51,000 MWh to 56,000 MWh, and the amount of purchased power decreased. This is due to the introduction of cogeneration systems. We achieved the targets as increased efficiency in fuel use resulted in the reduction of CO2 emissions. We did not achieve the target for production water usage as the amount of water used for washing increased to fulfill orders for a wide variety of products sought in small quantities. We will redouble our reduction efforts by devising a better method of reusing water used in manufacturing one product for producing another product. The target for waste discharge was achieved as a result of improvements made to increase the yield rate and thorough classification. FY2019 results Item Target (year-on-year reduction)

1% reduction from the previous year CO2 emissions 9.0% (per unit of production)

Electric power 1% reduction from the previous year 4.8% consumption (per unit of production)

1% reduction from the previous year Production water (per unit of production) 0.3% usage (Paper production at the Mishima and Kumagaya plants)

Waste discharge 0.1% reduction from the previous year 5.3 %

Environmental Management System

Based on the Lintec Group Quality, Environmental and Business Continuity Policy, the Lintec Group proactively works on conservation of the global environment. With regard to worldwide integrated ISO 14001 certification, in fiscal 2019 we received an examination due to the relocation of Madico, Inc. We have been promoting information sharing among 12 domestic sites and 10 overseas sites covered by the integrated certification. Also in fiscal 2019, we started to undergo third-party verification regarding VOC emissions, in addition to the conventional four items—CO2 emissions, electric power consumption, production water usage, and waste discharge. The verification found no important issues requiring correction. For biodiversity conservation, we continue to engage in relevant activities, such as tree planting and beach cleanups. Moreover, LINTEC Corporation became a member of CLOMA* as part of our efforts to propose and promote environmentally friendly products.

* CLOMA: CLOMA stands for Clean Ocean Material Alliance. It is a platform to promote thesustainable use of plastic products and development and introduction of plastic alternatives, and to accelerate innovation through public-private partnerships, toward thereduction of marine plastic litter. CLOMA was established under the initiative of the Ministry of Economy, Trade and Industry

Internal Environmental Auditing

In order to ensure proper implementation of environmental management systems in connection with its business activities, the Lintec Group conducts internal audits and mutual audits of its business sites, and runs the PDCA cycle for improvement with respect to legal compliance and system operations.

In fiscal 2019, as in the previous year, the Lintec Group conducted mutual audits of its business sites in Japan. By auditing other sites, each site learned about the best practices of other sites and were also able to recognize their own best practices. Both negative and positive audit findings are applied to other business sites to improve related activities across the company. In fiscal 2019, we began preparations to carry out mutual audits at overseas sites (Taiwan) in addition to those in Japan. To enable mutual audits between domestic and overseas sites, relevant documents are currently being translated into Japanese. Environmental Compliance

The Lintec Group's operations in and outside of Japan are subject to numerous national and regional environmental laws and regulations. To ensure legal compliance at each site, the environmental management department constantly checks for revisions to relevant laws and regulations, and monitors the compliance status of respective site operations. Identified revisions are incorporated into the Group's environmental management systems on a regular basis to prevent oversights and omissions. No major legal violations* have been reported in the 7 years from fiscal 2013 to 2019.

* Major legal violations refers to offences that are subject to fines or other penalties

Biodiversity Conservation Initiatives

The Lintec Group has incorporated biodiversity conservation into its Quality, Environment and Business Continuity Policy, and accordingly promotes biodiversity conservation activities at individual sites in and outside of Japan. Every year, Lintec Industries (Sarawak) Sdn. Bhd. carries out cleanups in national parks and learns about their resident species. On Saturday, September 7, 2019, employees of the company learned about native plants in Sarawak that have long been used in daily life, and participated in activities to plant them. Sarawak is a province of Malaysia that lies on the northern part of the island of Borneo. This province is home to rainforests blessed with tremendous biodiversity, as well as more than 28 ethnic groups. Each of these ethnic groups has a rich inheritance of traditional knowledge about plant utilization passed down by their ancestors. The traditional knowledge has been registered as a heritage by the Sarawak Biodiversity Centre (SBC), which works to protect and make effective use of biodiversity and achieve sustainable development. In cooperation with staff from the SBC and the Rajah Brooke Heritage Garden, 26 employees of the company created planters in which they planted about 200 seedlings of several herb species. We will continue these efforts for biodiversity conservation.

As a responsible manufacturing enterprise, the Lintec Group strives to develop products that reduce environmental impact. The group also works to reduce impact on the environment from resource extraction and the procurement of raw materials through production processes to disposal by including life-cycle assessments (LCA) right from the design stage.

Guidelines for Environmentally Friendly Products

Lintec has been developing new environment-friendly products, as defined based on LCA*1 assessments, and developed 59 such products in fiscal 2019. Lintec has also developed and uses guidelines for "self- declared environment-friendly products" which are in accordance with ISO 14021*2 . Lintec will continue to develop environment-friendly products.

*1 LCA: a method for comprehensively assessing effects on the environment by calculating items such as the amount of energy and water input, the amount of

raw materials used, and the amount of CO2 and hazardous chemical substance emitted throughout a product's lifecycle. *2 ISO14021: an international standard for "Environmental labels and declarations -- Self-declared environmental claims (Type II environmental labeling)" A business operator sets its own standard and may place environmental claims on the labeling of a product which satisfy that standard.

Developing Products That Help Reduce Environmental Impact

The Lintec Group has positioned environmental and energy businesses as an important focus. Some of the main products are window films with superior heat insulation, which reduce consumption of energy, and film base label materials, which promote recycling and reuse. Lintec is committed to developing products that help reduce environmental impact and save energy, and satisfy customers. New item "KP3802L" (transparent-type) using recycled PET film

Despite utilizing 100% recycled PET resin for its facestock material, the KP3802L transparent-type labelstock achieves the same level of physical properties as non-recycled PET film-based labelstocks, which do not utilize recycled PET. Since the facestock is also thin in comparison with general-purpose facestocks (which measure 50 µm), at a thickness of only 38 µm, it also contributes to reducing overall consumption of recycled raw materials. The adhesive used in KP3802L is also a new environmentally friendly emulsion-type adhesive*. It can also be used KINATH KP3802L for a wide range of applications, such as product labelling, POP (point of purchase) advertisements, and eye-catching labels. Going forward, Lintec will continue striving to develop and propose labelstocks that lead to reduced environmental impacts.

* Emulsion-type adhesives: Since these adhesives do not use organic solvents,

they contribute to reducing CO2 emissions.

WINCOS AUTOMOTIVE FILMS—High-quality automobile window films with excellent design and functionality

Lintec has added six varieties of medium-grade films to its standard lineup of WINCOS AUTOMOTIVE FILMS, which offer both a diverse range of functionalities and high-class design. The products, which have already been well received in Southeast Asia, have become part of the standard lineup in Japan and overseas. With their luxurious coloring and metallic look and feel, these films provide automobile window glass with high-class design features while helping prevent in-car facilities from discoloring by filtering out UV rays, and helping to improve air- Application image of WINCOS conditioning energy efficiency by blocking solar heat, thereby AUTOMOTIVE FILMS contributing to energy saving.

Over-laminate films using biomass materials

Lintec offers a range of over-laminate films which can be affixed to the printing surface of labels to give added durability and enhanced aesthetic design features. The latest addition to the lineup is a new over-laminate film utilizing biomass facestock (product no.: BF1205), for which Lintec has acquired Biomass Mark certification under a program operated by the Japan Organics Recycling Association (JORA, December 2019, certification no.: 190132). The new film was launched both in Japan and overseas. The new film can be used to laminate a wide range of items, including labels for food products and cosmetics New item in our lineup of labelstocks that use adhesives containing biomass materials Strong-adhesive type suitable for use in low-temperature environments

In July 2019, we expanded our lineup of biomass adhesive labelstocks with the addition of a new item, which is a strong-adhesive type. This labelstock exhibits strong adhesion suitable for use in low-temperature environments and on uneven surfaces, both of which generally make adhesion difficult. As with the case of our conventional biomass labelstocks, the new item carries the Biomass Mark*. This labelstock features an adhesive layer for which Lintec obtained the Biomass Mark certification under a scheme BA6956-80: Can be firmly affixed to operated by the Japan Organics Recycling Association (JORA, an uneven food packaging surface certification no: 190025). Achieving a biomass level of 20%, this strong adhesive product contributes to conserving fossil resources and reducing CO2 emissions. It can be used as labels for refrigerated and frozen foods, cold sake, wine, and beverage cans, etc.

* The Biomass Mark has been introduced by the Japan Organics Recycling Association to certify products that use biomass (renewable resources of biological origin) material and conform to a set of requirements and standards for quality and production methods.

Lintec's Approach

The domestic Lintec Group is committed to carrying out various environmental activities to mitigate climate change and other environmental issues that impose risks on the continuity of its business.

Materiality KPIs Results★

Effectively using raw materials Amount of organic solvents used 18,000 t [A]

CO2 emissions from business activities Reducing atmospheric emissions 163,000 t [C] in Japan

Making environmental contributions Number of environmentally friendly 59 products [A] through products and services products developed

Organizations covered in Results: [A] Lintec Corp.; [C] Lintec Corp., Tokyo Lintec Kako, Inc.

★ For detailed data, click here

Efforts in Manufacturing

Status of Compliance with Japan's Energy Conservation Law

Energy use by the entire Lintec Group in Japan* exceeds 1,500 kl of crude oil equivalent each year. As a result, the Group was designated as a "specified business operator", pursuant to the provisions of the Act on the Rational Use of Energy ("Energy Conservation Act") in Japan, and is required to improve its energy use per production unit as well as its weighted electricity use per production unit (for reducing peak hour demand) by 1% per year. Additionally, many Lintec plants were designated as "specified business establishments" whose energy use is above 1,500 kl of crude oil equivalent. Since nine plants in Japan account for 95% of the Group's total energy consumption, it is important for each plant to take measures to reduce energy use. In fiscal 2019, the Lintec Group in Japan implemented a variety of energy-saving measures, such as effective operation of production facilities and boilers, air-conditioning control, and promoting the introduction of LED lighting.

* Lintec Group in Japan: Lintec Corporation and its sales offices; Tokyo Lintec Kako, Inc.; Osaka Lintec Kako, Inc.; Printec, Inc.; Lintec Services, Inc.; and Lintec Commerce, Inc. Energy Savings Promotion Committee

To comply with the Energy Conservation Act, the Lintec Group in Japan* collects monthly data on energy consumption of individual sites under the direction of the Lintec Energy Savings Promotion Committee. In fiscal 2019, the Lintec Group in Japan implemented corporate-wide energy-saving measures aimed at improving its energy use per production unit. We request the respective plants to submit their plans and measures to achieve the target of 1% reduction per production unit, and compile data on the progress and results of these measures. Moreover, energy-saving practices that have proven effective are applied to other production sites.

* Lintec Group in Japan: Lintec Corporation and its sales offices; Tokyo Lintec Kako, Inc.; Osaka Lintec Kako, Inc.; Printec, Inc.; Lintec Services, Inc.; and Lintec Commerce, Inc.

Total Energy Use and CO2 Emissions

In fiscal 2019, total energy use (crude oil equivalent, covered by the Energy Conservation Act) for the Lintec Group in Japan decreased by 1.3% from the previous year due to a decrease in production volume.

Energy use per unit of production improved by 0.7% to 0.309 kl per ton. CO2 emissions were 163 thousand tons, down from 179 thousand tons in fiscal 2018. In fiscal 2020, Lintec aims to reduce its CO2 emissions and electricity consumption by 1.0% each on a per-unit of production basis compared to fiscal 2019, by facilitating the use of low-carbon electric power.

Green electricity purchased 36GWh

Calorie equivalent 351 thousand GJ

CO2 reduced by green electricity 16.9 thousand t

Reduction effects of investment in reducing

CO2 242tCO2 (Actual value for investment effect evaluation)

Notes: Calculated on the basis of the Energy Conservation Act (CO2 emissions coefficient of the business operator) Notes: Calculated on the basis of the Energy Conservation Act (Act on Promotion of Global Warming Countermeasures) Total energy use (crude oil equivalent)

※ Fuel means kerosene, Bunker-A oil, liquid natural gas (LNG)

CO2 Emissions

※1 The amount of CO22 emissions is calculated by applying a CO emission coefficient to the amounts of electricity and fuel used.

※2 The CO2 emission coefficient for fiscal 1990 is the value specified in Article 3.1 of the Enforcement Order for the Act on

Promotion of Global Warming Countermeasures in Japan as revised in December 2002. The CO2 emission coefficients for fiscal 2009 and thereafter are the values specified in the same Order, as revised in March 2010. For the purchased electricity coefficients Lintec uses the emission coefficients provided by the power companies that supply electricity to the facilities concerned.

※3 The emissions shown above are CO2 emissions from fossil fuels. Solar Power

Lintec has introduced photovoltaic power generation systems. In fiscal 2019, the system installed at the Doi Plant produced 1,066,000 kWh of electricity, and the system at the Agatsuma Plant generated 495,000 kWh of electricity. Combined, these figures are equivalent to a reduction in CO2 emissions of approximately 500 tons per year. In addition, the system installed in the Head Office building supplied 11,000 kWh of power for internal use, thereby helping reduce on-peak demand.

Solar panels at the Doi Plant Solar panels at the Agatsuma Plant (about 10,000m2 ) (about 5,000m2 )

Efforts to Reduce CO2 Emissions: Fuel Shift to LNG

From fiscal 2006, Lintec moved forward with the conversion of fuel for boilers used to produce steam, shifting from heavy oil and kerosene to utility gas and LNG, which have lower CO2 emissions. In January 2011, fuel conversion work for boilers at Lintec's plants in Japan had been completed. In addition, we are promoting installation of economizers in incinerator boilers and use of waste heat recovered from VOC treatment units. Seeking to further enhance our energy-saving efforts directed at reducing CO2 emissions, we adopt energy-efficient models when Power generator at Doi Plant updating facilities while promoting efficient operation of equipment and use of residual heat. In 2019, the Doi Plant replaced its previous power generation facilities using heavy oil with a gas cogeneration system. The Agatsuma Plant converted the fuel for its regenerative thermal oxidizer into LNG and removed heavy oil tanks. In fiscal 2020, we plan to make a fuel conversion at the Komatsushima Plant.

Introduction of Cogeneration Systems

Lintec has introduced cogeneration systems that produce and supply electric power and heat from the heat source. The Kumagaya Plant and Doi Plant have introduced gas engine cogeneration systems, which use LNG and other types of fuel, generate and supply electric power to operate various production facilities, and collect, using steam, and utilize heat generated at the time of power generation. The system at the Doi Plant started full-fledged operation in October 2018, reducing emissions by approximately 4,475 tons CO2/year compared with the previous fiscal year. Reducing Power Used for Lighting

The Lintec Group continuously encourages energy-saving activities. These include visualization of energy use, air-conditioning control, reduction of standby energy use during non-business hours, and introduction of LED lighting. At the Agatsumaa Plant and the Ina Technology Center, LED lights were introduced in 2019 to replace fluorescent lighting. At the Agatsuma Plant and the Ina Technology Center, LED lights were introduced in fiscal 2019 to replace fluorescent lighting.

Efforts to Prevent the Leakage of Fluorocarbons

Manufacturing sites are equipped with a number of industrial chillers and air conditioners that use fluorocarbon refrigerants. The Lintec Group, in compliance with the Fluorocarbons Emissions Control Act, creates a list of such equipment installed at its sites and conducts daily checks and periodic detailed inspections in order to prevent the leakage of fluorocarbons from the equipment during operation.We will continue to adhere to the standards of judgment for managers set by the Act.When needing to dispose of the equipment, we entrust the task to appropriate service providers to ensure safe recovery of the compounds contained. There were no cases of violations.

Efforts in Distribution

Lintec does not have distribution and transportation sections but is a "Designated Shipper" under the Revised Energy Conservation Act in Japan because it consigns the transport of more than 30 million ton- kilometers* annually. In fiscal 2019, the transportation volume decreased by 3.6% (3,534,000 ton-kilometers) from the previous year, and CO22 emissions decreased by 4.3% (467 t-CO ). Energy use per unit of transportation improved by about 0.7%. We will continue to improve our distribution system and transportation loading efficiency, with the goal of reducing environmental impacts.

* Ton-kilometers: A unit of cargo transport amounts, computed by multiplying the cargo tonnage by the transportation distance. Transporting 1 ton of cargo over a distance of one kilometer equals one ton-kilometer.

CO2 emissions and transportation volume in distribution

Notes: Calculated according to the emission intensity database. Energy usage

Notes: Calculated on the basis of the Energy Conservation Act (Measures Pertaining to Consigners)

Lintec's Approach

In order to help realize a recycling-oriented society, the Lintec Group is working to reduce waste. It is also striving to save water, reuse waste water, while complying with the effluent control regulations and improving the quality of effluent generated.

Materiality KPIs Results★

Effectively using raw materials Amount of organic solvents used 18,000 t [A]

CO2 emissions from business activities Reducing atmospheric emissions 163,000 t [C] in Japan

Making environmental contributions Number of environmentally friendly 163,000 t [C] through products and services products developed

Number of serious violations of Ensuring environmental compliance environmental laws and regulations 0 violations [D] (fines/sanctions)

Organizations covered in Results:[A] Lintec Corp.; [C] Lintec Corp., Tokyo Lintec Kako, Inc.; [D] Lintec Corp. Head Office, 10 production sites, Research Center

★ For detailed data, click here

Efforts for Zero Emissions*1

In fiscal 2019, the amount of waste generated, including manufacturing loss, at Lintec was 28,100 tons. The total waste output was 11,800 tons. Of this waste output, 7,100 tons were recycled by outside recycling companies and the remaining 4,600 tons were properly disposed of by waste disposal companies. The final landfill disposal rate*2 for fiscal 2019 was 0.3%, achieving the target final landfill disposal rate of 1.0% or less. Lintec's target from fiscal 2019 to fiscal 2020 is a 0.1% reduction in the amount of waste generated, on a year-on-year basis.

*1 Zero emission: Lintec's standard is a final landfill disposal rate of one percent or less. *2 The final landfill disposal rate is a value found using the following formula: Final landfill disposal rate = Final landfill disposal amount/Amount of waste generated × 100. Fiscal 2019 waste flow

Waste discharge

3R Efforts

Efforts to Reduce (reduce amount of waste)

The Lintec Group promote a paperless office by introducing an electronic approval system via the in-house intranet and by other means. Moreover, each plant strives to reduce input resources in accordance with production plans designed to downsize the furnace for preparing application liquids, reduce the width of raw material rolls used in the paper passing process, and ensure continuous production for products that use similar raw materials.

Efforts to Reuse (use repeatedly)

We clean pallets used within the Group's production sites and the cores we use for the rolls of adhesive products in process on an as-needed basis. These pallets and core rolls are reused at the sites that transfer or receive them. Lintec also promotes reuse practices involving customers and raw material manufacturers. We manage the pallets of customers and raw material manufacturers after sorting them by owner, and return them to their original owners to ensure that they can be reused. Efforts to Recycle

We held waste workshops at all of the Group's domestic sites (28 sites, with 246 participants) to encourage waste management in compliance with laws and regulations and the subdivision of waste into categories. At each plant, waste is now classified into between 30 and 60 categories. Mixed refuse that was previously disposed of as waste can be sold to recycling companies as valuable materials. In this way, each plant is promoting recycling activities. We have focused on the development of environmentally friendly products, and have launched adhesive films using recycled PET resin and adhesive products using biomass adhesives, among other things.

My Next Stage

To reduce the amount of waste generated, we at the Chiba Plant have developed a very detailed waste classification system so that we can sell part of the waste generated as valuable materials. This fiscal year, the rate of valuable materials recovered from waste was approximately 21%, as of February 2020. At our office and coating section, we have installed collection boxes for Susumu Kaneko three types of waste: paper, film, and polyvinyl chloride (PVC). In addition, Assistant to Plant Manager large waste sheets and the like are placed into a waste receptacle, which is Chiba Plant conveyed to an industrial waste storage facility for further classification into, again, paper, film, and PVC, each of which is wound in rolls and compressed, and then divided into waste and valuable resources. Besides large waste sheets, we can recover valuable materials from used metal and cardboard tubes. The coating section works to reduce the amount of waste sheets or fluids (glues and solvents) by increasing production yield and operating efficiency. For operating efficiency, we are taking measures such as batch coating*. As a result of each workplace's efforts mentioned above, waste generation from the Chiba Plant has gone down year by year.

* Batch coating: A coating scheme to produce various combinations of products by changing the types of separators (release materials, such as release films/ papers) and base materials (film/paper substrates, etc.), on the basis of the adhesives.

Reducing Water Usage and Effluent

In fiscal 2019, Lintec used 8,789,000 m3 of water. Of this amount, about 90% was used by the Kumagaya and Mishima plants, which are Lintec's Fine & Paper Products Operations. Water usage per unit of paper production was 47.04 m3 /t*. Lintec was unable to achieve the target of a 1.0% reduction on a year-on- year basis. The target in fiscal 2020 is a 1.0% reduction per unit of production from the previous year. To that end, the plants will make continued efforts to reduce water usage and effluent discharge in each process and prevent water leaks.

* While t/t was used for calculation, the measurement was converted to m3 /t for this report.

Process from Water Intake to Effluent Water usage data is calculated by source.

Category FY2019 (thousand tons)

Total water usage 8,789

・Tap water 510

・Industrial water 4,455

・Groundwater 3,824

Effluent 6,589

※ Water usage data is the sum of the figures for tap water, industrial water, and groundwater. Standards, methods and preconditions used Measurement value is used for tap water, industrial water and groundwater.

Water usage (Kumagaya and Mishima Plants)

Effluent treated (Kumagaya and Mishima plants)*

* Total of flowmeter data for effluent treatment equipment installed at the Kumagaya and Mishima plants. Reducing Effluent

The total amount of water used by Lintec in fiscal 2019 was 8,789 thousand m3 . About 90 percent of this was used at the Kumagaya and Mishima plants. These plants are working to reduce their water usage and effluent discharge by taking measures such as reusing used water in each papermaking process. They will continue to renovate the water treatment facilities.

Effluent processing equipment at the Kumagaya Plant

Effluent Water Quality (Fiscal 2019)

Kumagaya Plant

Results

Item Wastewater standards Maximum Average value value

pH 5.8〜8.6 6.63〜7.48 7.04

SS*1 (mg/ℓ) 60(50) or less 26.6 11.91 Regulations on emission BOD*2 (mg/ℓ) 20 or less 20 9.81 concentration COD*3 (mg/ℓ) - 48.9 23.77

COD(t/day) 0.858 or less 0.2746 0.1435 Regulations on total Nitrogen(t/day) 0.4068 or less 0.0277 0.1438 emissions Phosphorous(t/day) 0.0418 or less 0.0013 0.0011

Notes: We are continuing to improve the BOD treatment facility. Mishima Plant

Results

Item Wastewater standards Maximum Average value value

pH 5.8〜8.6 6.0〜7.3 6.64

Regulations SS*1 (mg/ℓ) 80(60) or less 33 4 on emission 3 concentration COD* (mg/ℓ) 90(65) or less 78.6 24.0

COD(t/day) 0.9431 or less 0.5198 0.2462 Regulations on total Nitrogen(t/day) 0.3961 or less 0.2171 0.0430 emissions Phosphorous(t/day) 0.0405 or less 0.0009 0.0003

Notes: 1. Figures in parentheses are the daily average values. The regulations for each plant are as follows: Kumagaya Plant: The regulation value shown for BOD is based on a value agreed upon with the city of Kumagaya. The values shown for pH, SS, COD (total emission), nitrogen, and phosphorus are based on the environmental protection ordinances and notices of Saitama Prefecture. Mishima Plant: The regulation values shown for pH, SS, and COD (emission concentration) are based on the Water Pollution Control Law, while the values for COD (total emissions), nitrogen, and phosphorus are based on notices from Ehime Prefecture. 2. In the column showing the maximum values of the results, the minimum to maximum values are shown for pH and the total value is shown for regulations on total emissions. *1 SS (suspended solid): substances that remain in suspension in water and cause water turbidity. *2 BOD (biochemical oxygen demand): amount of oxygen consumed when microorganisms break down organic matter in the water. *3 COD (chemical oxygen demand): amount of oxygen required to oxidize oxidizable substances in water.

My Next Stage

The Mishima Plant consumes large amounts of water and steam to run three paper machines. We work to save water usage by reducing white water*1 for material preparation. As for the steam we use, some portion of it is purchased from an external company. After steam is used in driers, it turns into surplus drain*2 , the amount of which coincides with that of the steam we purchase. Rather than discarding the drain, we recover and reuse Noboru Yamada it for material preparation. This measure helps reduce water usage and Maintenance Department improve stock preparation efficiency owing to a rise in water temperature. Mishima Plant If we can reuse all the surplus drain recovered from the total amount of purchased steam, it is estimated that 300 t/day of water can be saved (total amount of water used in the plant is 11,000 t/day). This corresponds to an estimated 45 t/month of LNG saving in terms of energy used for heating. We will continue our efforts for further water saving and reuse so as to reduce our consumption of production water.

*1 White water: Water mixed with pulp or other raw materials to make paper. *2 Drain: When steam generated in a boiler or similar system loses heat, it is condensed into water, which is then called "drain." Reduction of Environmentally Hazardous Substances

Lintec's Approach

The Lintec Group complies with relevant laws and regulations in and outside Japan and strives to reduce its use of chemical substances that have an impact on the environment.

Lintec's Approach KPIs Results★

VOC* emissions from business Reducing atmospheric emissions 869 t [E] activities in Japan

Organizations covered in Results: [E] Lintec Corp. production sites (excl. Ina), Research Center

* VOC: VOC stands for volatile organic compounds. VOC collectively refers to organic compounds that become gas in the atmosphere.

★ For detailed data, click here

Compliance with PRTR Act*

In fiscal 2019, Lintec reported the use of toluene, xylene, and othersubstances designated under the PRTR Law, and the total quantity of thesePRTR chemicals was 7,817 tons. Toluene accounted for approximately 98%, the largest portion of the total amount, standing at 7,652 tons, down 267 tons from the previous year. Emissions of toluene into the atmosphere were 464 tons, down 25 tons from the previous year, and the transferred amount was 363 tons, down 166 tons from the year before. Lintec has installed exhaust gas treatment facilities to remove atmospheric emissions of organic solvents. Its plants are not permitted to manufacture products without operating these treatment facilities. In fiscal 2019, there was no case where a plant did not operate these treatment facilities during production. Emission and transfer of toluene FY2019

Change in emission and transfer of toluene

2015 2016 2017 2018 2019

Toluene handled (t) 7,436 7,730 7,752 7,919 7,652

Toluene emitted (t) 441 471 482 489 464

Quantity eliminated 6,502 6,792 6,787 6,901 6,825 (t)

Elimination rate (%) 93.6 93.5 93.4 93.4 93.8

Quantity transferred (t) 494 467 483 529 363 (Disposed of)

Note: Elimination rate = eliminated amount/(handling amount − transferred amount) ×100

* The PRTR (Pollutant Release and Transfer Register) Act is formally named the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvement to the Management Thereof.

Management of chemical substances, compliance with EU regulations

Lintec has specified chemical substances that may have an environmental impact, and examines these substances in the raw materials it purchases. The company properly grasps and manages its use of chemical substances to comply with related laws and regulations, and communicates information to customers. In January 2020, under the REACH Regulation*1 , four substances were added to the Candidate List of substances of very high concern (SVHCs), on which information must be communicated. Accordingly, there are now a total of 205 SVHCs on the REACH Candidate List. Meanwhile, the RoHS Directive*2 was revised to expand the scope of its application. In the revised RoHS Directive, four phthalate esters are specified as restricted substances, in addition to the six substances whose use has been already regulated. The four new substance restrictions were brought into effect on July 22, 2019. Lintec is working on switching over to raw materials containing no phthalate esters to ensure that its products are friendly to the environment. The company will continue to reinforce the management of chemical substances contained in products. Product Information Flow

*1 REACH Regulation: A chemical substance regulation in the EU on the "Registration, Evaluation, Authorization and Restriction of Chemicals". Registration is required when exporting a chemical substance into EU states in quantities of one metric ton or more per year. Notification must also be submitted to the authorities when a chemical substance falling under the category of "candidate for required authorization" is present in a product at more than 0.1 percent of the mass of the object. *2 RoHS Directive: EU's Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment.

Chemical Leak Drills

The Lintec Group conducts chemical spill drills at plants and research centers that handle chemical substances. The drills aim to familiarize employees with actions required to be taken in the event of a chemical spill, including immediate initial actions, steps to prevent possible secondary disasters, such as a spill extending to outside the premises, soil contamination, and fire, and safe methods of clearing the contaminated area. In fiscal 2019, drills were carried out at the Mishima Plant, Agatsuma Plant, Kumagaya Plant, Chiba Plant, Research Center, Niihama Plant, and Shingu Plant, with a total of 564 participants.

Proper Storage and Management of PCB*

Previously, Lintec securely managed and stored PCB waste at its Tatsuno Plant. However, we properly completed the disposal of PCBs at the end of June 2019.

Status of proper storage and management of PCBs

Year of Number of Expected registration for Business site stored units Treatment facility processing consignment of PCB waste completion treatment

19 high- March 22, concentration JESCO Tokyo Office 2005 2019 units (Completed)

4 fluorescent June 2018 Kumagaya Plant JESCO Hokkaido Office 2017 light ballasts (Completed)

1 low- December concentration Gunto Sangyo Co., Ltd. 2018 2018 unit (Completed)

14 high- June 2019 concentration 2015 (Completed) Tatsuno Plant units JESCO Kitakyushu Office

3 fluorescent June 2019 2019 light ballasts (Completed)

Total 41 units disposed of

* PCB (polychlorinated biphenyl): The Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes (PCB Special Measures Law) mandates the proper storage, management, and disposal of wastes containing PCBs. Reducing VOCs (volatile organic compounds)

Transitioning to Solvent-free Release Agent

Lintec is reducing VOCs. In product design, Lintec is working on switching to a solvent-free release agent for its release paper and solvent-free adhesive for printing-related adhesive products to reduce the amount of organic solvents it uses. In fiscal 2019, the percentage of solvent-free release paper (production basis) was 55%. The percentage of solvent-free printing-related adhesive products (sales basis) was 78%. The percentage of solvent-free paper and products remained at the same level as in the past. Recognizing the importance of further reducing VOCs for preventing air pollution by businesses, Lintec is planning and implementing VOC reduction measures. Lintec has completed the installation of exhaust gas treatment facilities, and will continue to ensure reliable management of treatment facilities, manage the percentage of solvent-free products, and develop and promote sales of solvent-free products to further reduce its environmental impact.

Percentages of solvent-free printing-related adhesive products and release paper

Notes: 1. Percentage of solvent-free printing-related adhesive products = quantity of solvent-free printing-related adhesive products sold / quantity of all printing-related adhesive products sold x 100 2. Percentage of solvent-free release paper = quantity of solvent-free release paper produced / quantity of all release paper produced x 100 My Next Stage

The Agatsuma Plant has installed additional production equipment for coated films. Under ordinary circumstances, this addition would result in a substantial increase in VOC emissions. However, the regenerative thermal oxidizer (RTO, exhaust gas purification equipment) that we have introduced is capable of processing low-concentration solvent gas released not only from coaters but also from indoor local ventilation equipment when Nachio Satoyoshi connected to the concentration apparatus. Moreover, by removing more Production Department than 98% of solvent gas, the new equipment has enabled us to further Agatsuma Plant reduce atmospheric VOC emissions.

Regenerative thermal oxidizer (RTO, Heat storage combustion type exhaust gas purification equipment)

Lintec uses environmental accounting to ascertain the costs and benefits of environmental protection, and continues to carry out environmental protection activities as effectively as possible. Environmental investments*1 made in fiscal 2019 totaled 561 million yen, while environmental costs*2 incurred for the same year totaled 3,730 million yen. Total environmental investments, mainly used to introduce exhaust gas processing equipment for production facilities, among others, increased by 211 million yen from the previous year. Total environmental costs increased by 1,082 million yen year on year due to an increase in the number of projects to develop environmentally friendly products.

*1 Environmental investments: The amount of investments made during a year for the purpose of environmental conservation. Since the effect of the investments lasts for several years or longer, the invested amounts are recognized as costs over those years. *2 Environmental costs: Costs or losses arising from consuming goods and services for the purpose of environmental conservation

Calculation Basis

1. The scope of data collection covers Lintec Corporation and Tokyo Lintec Kako. Other affiliates are not included. 2. The data is for the period from April 1, 2019, to March 31, 2020. 3. The Environmental Accounting Guidelines (2005) from the Japanese Ministry of the Environment were used as a reference. Fiscal 2019 environmental conservation costs (Million yen)

Target Details of main Category Investments Expenses equipment initiatives

Pollution prevention cost

Management and Exhaust maintenance of a.Preventing treatment 181 equipment to 281 air pollution system prevent air pollution

Management and b.Preventing Wastewater maintenance of water treatment 18 equipment to 173 pollution system prevent water pollution

c.Preventing PCB and sludge overall -31 28 disposal costs pollution

Global environmental conservation cost

Management and a.Preventing Exhaust maintenance of global treatment 2 98 fuel conversion warming system 1.Business area systems

cost Management and Waste heat maintenance of b.Energy recovery 324 in-house power 446 conservation system generation equipment

Resource circulation cost

Management and maintenance of a.Efficient Waste paper wastepaper utilization of treatment - processing 337 resources system equipment; use of wastepaper as raw material

Management and maintenance of b.Treating, Waste- incinerator and reducing, and derived fuels 2 boiler 453 recycling system equipment; waste industrial waste processing Collecting, recycling, and By-product -- 60 reusing pickup 2.Upstream / byproducts downstream cost Green Purchase of procurement environmentally -- 9 and friendly office purchasing supplies

Constructing and operating Environmental environmental --conservation 335 management organizations systems

Preparation of the CSR Report Environmental and webpages; information -- 28 participation in disclosure the Eco-Products fair 3.Administration Monitoring cost Analysis and and measurement of measuring -1 44 regulated environmental substances impact

Participation in Environmental --seminars and 1 education workshops

On-site Environmental beautification; improvement -- 25 garden tree measures pruning

R&D relating to 4.R&D cost - 2 environmental 1,394 protection

Biodiversity project activity 5.Social activity cost - - 0 reporting presentation Payment of pollution load 6.Environmental remediation cost - - levy; 16 compensation for fisheries

Total - 561 - 3,730

Note: Investment in exhaust treatment system installation includes spare parts and miscellaneous work.

Fiscal 2019 environmental conservation effects

Environmental conservation Environmental Base Environmental effect conservation effect period FY2019 performance indicators (difference categories (FY2018) against base period)

Purchased electricity usage 1,000 37 36 -1 (crude oil kl equivalent) 1. Environmental Fuel usage conservation effects 1,000 (crude oil 54 55 1 related to resources put kl into business activities equivalent)

Organic solvent 1,000 t 9.7 9.4 -0.3 usage

Water usage 1,000 t 8,484 8,789 305

CO2 emissions 1,000 from 179 163 -16 t-CO2 manufacturing

Toluene 1,000 t 0.489 0.464 -0.025 emissions to air 2. Environmental Waste discharge 1,000 t 28.94 28.1 -0.84 conservation effects Waste related to environmental 1,000 t 4.29 4.6 0.31 impact and waste output incinerated

from business activities Waste buried in 1,000 t 0.04 0.09 0.05 final landfills

Total effluent 1,000 t 6,795 6,589 -206

SOx emissions t 8.4 8.7 0.3

NOx emissions t 77 38.8 -38.2 Fuel usage associated with transportation kl 4,088 3,912 -176 (crude oil equivalent) 3. Other environmental CO2 emissions conservation effects 1,000 associated with 10.9 10.4 -0.5 t-CO2 transportation

Amount of 10 product Million 9.8 9.4 -0.4 transportation ton-km

Environment Performance Data in Fiscal 2019

Below is the environmental FY2019 data for the 15 Lintec Group companies outside of Japan.

VOC emissions*

* VOCs: VOCs stands for volatile organic compounds. VOCs collectively refers to organic compounds that become gas in the atmosphere. Electricity usage Fuel (light oil and natural gas) usage (crude oil conversion)

Note: 1. VOCs = toluene and methyl ethyl ketone 2. Figures stipulated in Article 4 of the enforcement regulations for Japan's Energy Conservation Act were used for the calorific value of each fuel used in order to calculate the crude oil equivalent of consumed fuel. 3. LSFT = Lintec Speciality Films (Taiwan); LAT-T = Lintec Advanced Technologies (Taiwan); LSFK = Lintec Speciality Films (Korea); LE (UK) = Lintec Europe (UK) Limited

Calculation Basis

1. The scope of data collection covers Lintec Corporation and Tokyo Lintec Kako. Other affiliates are not included. 2. The data is for the period from April 1, 2019, to March 31, 2020.

Fiscal 2019 Material Flow (Scope: Lintec Corporation [Head Office, 10 production sites, Research Center]; Tokyo Lintec Kako, Inc). As figures with ★ have undergone third-party verification by SGS Japan, Inc. Scope of verification for figures with ◆ is equivalent to 98% of the conventional figures reported. In responding to CDP,*5 we have been expanding the scope through total volume control.

*1 Inside sales are not included in "Output" figures.

*2 Scope 1: Direct CO2 or other greenhouse gas emissions from the consumption of *4 Pandemic: An occurrence of an infectious disease that affects many people on a global scale purchased gas and liquid fuels, such as liquid natural gas (LNG), liquid petroleum gas (LPG), utility gas, kerosene, light oil, and gasoline.

*3 Scope 2: CO2 or other greenhouse gas emissions generated by other companies in the production of energy, such as electricity and steam, purchased by the reporting company. *4 CDP: CDP is an international NGO that calls for disclosure of corporate information on environmental affairs (climate change, water, forest, etc.) and issues regular analysis reports. The Carbon Disclosure Project, established in 2000, is the precursor of CDP.

Each of our group companies outside Japan is promoting community-based CSR activities to fulfill our responsibility as a global company.

LINTEC (SUZHOU) TECH CORPORATION

In China, pollution has long been a serious social issue against the backdrop of the country's rapid economic development, and a national commitment to address the problem is required. On April 13, 2019, seven employees of our company took part in

Shuifang Yang a program to release juvenile fish organized by the Engineering Suzhou New District Environmental Protection

Department Industry Association, with the objective of Releasing juvenile fish protecting water quality in Lake Taihu in Suzhou. A rough total of 300 participants from more than ten companies worked together to release roughly 10,000 crucian carp, redfin culter, and other fish species that eat blue-green algae so as to contribute to preserving water quality in the lake.

Company Overview Location: Suzhou, China No. of employees: 176 Main business activities: manufacture and sale of printing- and industry-related products and paper- and processing-related products LINTEC PRINTING & TECHNOLOGY (TIANJIN) CORPORATION

As part of our efforts to preserve biodiversity, in April 2019 we planted five persimmon trees and one apple tree on the premises of our company. In autumn, these trees bore fruit, which all employees enjoyed appreciating. The tree planting increased

Zhang Kun our opportunities to commune with nature, thereby Quality Assurance & raising our environmental awareness. Environmental Safety Department Company Overview Location: Tianjin, China No. of employees: 94 Tree planting Main business activities: manufacture and sale of printing- and industry-related products

LINTEC SPECIALITY FILMS (TAIWAN), INC.

In May 2019, before the full-scale typhoon season began, we conducted a drill in preparation for torrential downpours caused by typhoon weather. All employees participated in the drill, in which they cooperatively practiced the emergency response

Cheng, Wen-chieh procedures, from the occurrence of a typhoon and Environment & the issuance of a warning to its cancellation, as

Safety Office stipulated in our company's BCP. Through the drill Reentering the plant for inspection we confirmed that these procedures worked after a typhoon properly.

Company Overview Location: Tainan, Taiwan No. of employees: 88 Main business activities: manufacture and sale of electronic- and optical-related products LINTEC ADVANCED TECHNOLOGIES(TAIWAN), INC.

In December 2019, we cleaned the beach of Yuguang Island near Tainan, a city adjourning Kaohsiung. Employees of our company were joined by family and friends, working together in an orderly fashion to collect 46.2 kg of waste.

Chen-Jung Liao After the cleanup, we visited the Blueprint Culture & ISO Promotion Creative Park in Tainan City as part of our efforts to

Department prevent the pollution of marine ecosystems. Looking Cleanup participants around the park, we were impressed by the reusable straws and other eco-friendly goods we saw. We also went to the Taijiang National Park, which is home to the Sicao Mangrove Green Tunnel, also known as Taiwan's "mini Amazon rainforest." Listening to a guide's explanations about the area's mangroves, crabs, and birds, we keenly realized the importance of nature and the bounty of biodiversity.

Company Overview Location: Kaohsiung, Taiwan No. of employees: 78 Main business activities: manufacture and sale of electronic- and optical-related products

LINTEC KOREA, INC.

In November 2019, we engaged in a social contribution activity dubbed "kimchi making with love." About 25 employees participated and had a meaningful experience. These employees worked on making the kimchi in the sincere hope that those

Moon Ji-Eun eating it would feel warmer during the cold winter General season.

Affairs Section Participating employees and their Company Overview handmade kimchi Location: Cheongju-si, Chungcheongbuk-do, Korea No. of employees: 112 Main business activities: manufacture and sale of electronic- and optical-related products LINTEC SPECIALITY FILMS (KOREA), INC.

At the end of 2019, we donated the proceeds from the coffee machines used by our company and money raised for charity to the House of Anayul, a welfare facility for persons with severe disabilities. We plan to continue this charity to donate the

Seung-Soo Kim proceeds from our coffee machines every year. Personnel and Company Overview General Donating the proceeds from our Location: Pyeongtaek-si, Gyeonggi-do, South Korea Affairs Section coffee machines and money raised No. of employees: 124 Main business activities: manufacture and sale of electronic- and optical-related products

PT. LINTEC INDONESIA

In April 2019, we carried out mangrove planting. In advance of the planting activity, we delivered a lecture to 42 students participating from Bogor Fisheries University. We explained the effectiveness of mangroves in reducing greenhouse gases and

Sugiharto appropriate methods of planting. The students Quality Assurance listened attentively to our lecture.

Department Giving a lecture at the university Company Overview Location: Bogor, Indonesia No. of employees: 161 Main business activities: manufacture and sale of printing- and industry-related products PT. LINTEC JAKARTA

We distributed SDGs badges along with a document explaining the SDGs (in Indonesian) to all employees. In Indonesia, the SDGs are still not well known to the general public. To promote employees' understanding of the SDGs, we collected SDGs-

Sitha Damayanti related data including Internet articles and our in- General Affairs and house magazine articles written in English, and

Human Resources compiled such information into a PDF file, which was Document explaining the SDGs, sent to employees by e-mail. I hope that employees which was distributed along with the of our company are well aware of their role as SDGs badge members of society tasked with achieving sustainable development.

Company Overview Location: Jakarta, Indonesia No. of employees: 24 Main business activities: sale of printing- and industry-related products

LINTEC INDUSTRIES (MALAYSIA) SDN. BHD.

As part of our environmental protection activities, we planted trees in the state of Penang in October 2019. From our company, 79 employees took part in the event. In cooperation with members from the forest management section of the state

Mokhtar Bin Osman government, they planted 100 trees. Production Company Overview Department Employees planting trees Location: Penang, Malaysia No. of employees: 97 Main business activities: manufacture and sale of electronic- and optical-related products LINTEC INDUSTRIES (SARAWAK) SDN. BHD.

Our company has been doing cleanups for more than 15 years. Every morning, we spend around 15 minutes sweeping fallen leaves from the neighborhood roads and cleaning ditches before the workdays begins. In fiscal 2019, we repainted the

Michael Benzi Junior zebra pattern painted on the road shoulder during a General Affairs & work break.

Human Zebra pattern we repainted Resources Company Overview Location: Sarawak, Malaysia No. of employees: 25 Main business activities: manufacture and sale of electronic- and optical-related products

LINTEC SINGAPORE PRIVATE LIMITED

On September 23, 2019, 28 volunteers from Lintec Singapore Private Limited and Lintec Asia Pacific Regional Headquarters Private Limited participated in the Lintec CSR Care and Share event. We handed out goody bags containing medicated oil, powder,

Faith Lim face towels, food, and other items to 250 elderly Human Resources people in neighboring areas. Seeing their smiling

Department faces, we realized the importance of social Event participants contribution and, in particular, the pleasure of giving something to others. I look forward to joining the same event again next year.

Company Overview Location: Singapore No. of employees: 65 Main business activities: manufacture and sale of printing- and industry-related products and electronic- and optical-related products LINTEC (THAILAND) CO., LTD.

In February 2020, we made a company trip to Cha- am Beach in Phetchaburi Province, a renowned tourist spot in Thailand. In the evening, we held a team-building party. On the following day, we visited the Wat Huay Mongkol temple, which is

Paweena Hang- home to the world's largest statue of Luang Phor Klang Thuat, a legendary Thai monk of great sanctity. The

ISO Clerk trip provided us with an opportunity to deepen Commemorative photo taken in front communication among employees. of the statue of Thuat

Company Overview Location: Chachoengsao, Thailand No. of employees: 190 Main business activities: manufacture and sale of printing- and industry-related products and paper- and processing-related products

LINTEC OF AMERICA, INC. Nano-Science & Technology Center

To promote waste reduction and recycling, we focused on classifying waste generated at offices and research facilities into corrugated cardboard, plastic beverage bottles, aluminum cans, etc.

Company Overview Will Barron Location: Texas, U.S.A. Operational Safety No. of employees: 29 Assistant Container for collecting plastic Main business activities: research and development beverage bottles

MADICO, INC.

Employees of Madico, Inc. took part in a project organized by Tampa Bay Watch, a local non-profit organization. Project participants created more than 700 vertical oyster gardens by stringing oysters along a rope via holes in their shells. The oyster

Kelli Houdek gardens are then suspended from docks. During the CSR Committee spawning season, oyster larvae drifting on the

current will attach to these shells and grow into Employees participating in the event healthy adult oysters.

Company Overview Location: Florida, U.S.A. No. of employees: 196 Main business activities: manufacture and sale of printing- and industry-related products VDI, LLC

Our company supports the activity of Dare to Care Food Bank, which offers food to households suffering from food insecurity. In fiscal 2019, we helped with the sorting and packing of more than 4,500 kg of food, which was donated by people in

Toni Doughty the local community. This organization offers food to CSR Committee households suffering from food insecurity. In the

event of an emergency, Dare to Care Food Bank CSR team that took part in the may provide, where possible, canned food, dried support activity food, fresh fruits and vegetables, and fresh meat such as chicken and pork.

Company Overview Location: Kentucky, U.S.A. No. of employees: 41 Main business activities: manufacture and sale of printing- and industry-related products

MACTAC AMERICAS, LLC

In February 2020, our company worked in cooperation with Ronald McDonald House Charities, located in Akron, Ohio, to offer dinner to more than 20 households. Adjacent to a children's hospital, the Ronald McDonald House Charities provides accommodations for families with children undergoing intensive treatment for a serious disease

or injury. Six employees of our company prepared a Cooking at the house buffet-style "taco bar" suitable for a family as well as a "Sandy bar" for after-dinner amusement. Our collaboration with the charity organization continues throughout the year.

Company Overview Location: Ohio, U.S.A. No. of employees: 453 Main business activities: manufacture and sale of printing- and industry-related products

The Lintec Group regards the basics of corporate governance to be the practice of thoroughgoing compliance, maximum management transparency, awareness of corporate ethics, rapid decision-making, and efficient administration of business operations. The Lintec Group aims to increase its corporate value by continually improving its corporate governance and common benefit to shareholders.

Corporate Governance Framework

For organizational design*1 , Lintec has chosen to be a company with an audit and supervisory committee,*2 and appoints directors as Audit and Supervisory Committee members to enhance the function of supervising the Board of Directors, with the aims of stepping up corporate governance and improving management further. The company has 10 directors, three of whom are members of the Audit and Supervisory Committee. Also, Lintec has four outside directors (two men and two women), including three independent outside directors (one man and two women). Of these three, two directors (one man and one woman) serve as Audit and Supervisory Committee members. With the adoption of the executive officer system, Lintec separates the function of directors in charge of making decisions on important management issues from that of executive officers in charge of business operations. In addition, the Corporate Governance Committee, comprising two independent outside directors and a representative director and chaired by an independent outside director, has been established as an advisory body for the Board of Directors. The Committee checks the validity of remuneration and personnel affairs of corporate officers.

Corporate Governance Framework

*1 Organizational design: Determining the structure of organizations (e.g., shareholder meeting, board of directors) in charge of decision-making or operation of a joint-stock company *2 A company with an audit and supervisory committee: A stock company where its audit and supervisory committee, comprising more than three directors (with outside directors as a majority) as committee members, audits and supervises how directors administer business operations Actions taken to enhance corporate governance

FY Major actions

2004 Appointed an outside director, first in the company

Established the Audit Office Reformed the executive compensation system (abolished retirement benefits 2006 and introduced stock options) Established the Remuneration Assessment Advisory Meeting (to check the validity of remuneration of corporate officers)

Established CSR Management Office 2008 Increased the number of outside directors from one to two

Adopted the executive officer system; decreased the number of directors 2011 significantly from 18 to 10

Shifted to a company with an audit and supervisory committee (from a company with a board of auditors) 2015 Set the number of board members at 16 (including four directors serving as Audit and Supervisory Committee members and four outside directors) Complied with principles of the Corporate Governance Code

Reformed the executive compensation system (for the long-term incentive plan, replaced stock options with restricted stocks in order to encourage directors' holding of treasury stocks) Abolished the buyout countermeasure (anti-takeover measure) 2018 Established the Corporate Governance Committee, comprising two independent outside directors and a representative director and chaired by an independent outside director, as an advisory body for the Board of Directors to check the validity of remuneration and personnel affairs of corporate officers (Remuneration Assessment Advisory Meeting was dissolved as a result)

Compliance with the Corporate Governance Code*

Lintec complies with principles of the Corporate Governance Code. Thus far, referencing the code, the company has taken various measures, such as the implementation of PDCA cycles through evaluating the effectiveness of the Board of Directors, and the establishment of the Corporate Governance Committee. Lintec will continue to comply with and implement the Corporate Governance Code. In light of social circumstances and the progress of its initiatives, top management and outside directors of Lintec also hold discussions on areas of deficiency to continue the company's improvement efforts.

* Corporate Governance Code: A compilation of key principles set out by the Financial Services Agency and Tokyo Stock Exchange in the form of a code that listed companies in Japan are expected to comply with as a means of enhancing corporate governance. Remuneration of Corporate Officers

1. Total remuneration by corporate officer type, remuneration type, and number of officers included

Total compensation by category No. of Total (million yen) officers Executive category compensation Basic covered (million yen) Stock options Bonus compensation (persons)

Director (excl. Audit & Supervisory Committee 361 266 33 62 10 member) (excl. outside director)

Director (Audit & Supervisory Committee 19 19 - - 1 member) (excl. outside director)

Outside director 21 21 - - 6

(As of March 31, 2020)

2. Policy regarding decisions on amounts of director remuneration

(1) Director remuneration (excluding Audit & Supervisory Committee members) Remuneration of directors (excluding outside directors and Audit & Supervisory Committee members) consists of three types: basic remuneration, bonuses, and restricted stock. Bonuses are offered as short-term incentives and paid in amounts adjusted based on consolidated business results. Restricted stock is offered as long-term incentives, looking to increase directors' motivation for raised share prices and corporate value. The amounts of remuneration are decided by the Board of Directors in accordance with the Company's internal rules on director remuneration, within totals approved at the General Meeting of Shareholders. With the aim of improving objectivity and transparency, the Corporate Governance Committee has been formed as an advisory body for the Board of Directors to provide advice and recommendations.

(2) Director remuneration (excluding Audit & Supervisory Committee members) The amounts of remuneration are decided by the Board of Directors in accordance with the Company's internal rules on director remuneration, within totals approved at the General Meeting of Shareholders. (3) Director remuneration (Audit & Supervisory Committee members) The amounts of remuneration are discussed and decided by the Audit & Supervisory Committee in accordance with the Company's internal rules on director remuneration, within totals approved at the General Meeting of Shareholders.

Pursuing Strategic CSR Practice

Many stakeholders support the business of the Lintec Group. To continue to meet these stakeholders' expectations and be trusted by them, all Lintec Group employees actively conduct CSR activities centered on the company motto, "Sincerity and Creativity," and in accordance with the "LINTEC WAY," which is an important value supporting the company motto, the Basic CSR Approaches, and the Lintec Group Compliance Guidelines. The LINTEC INNOVATION PLAN 2019 (LIP-2019), our medium-term business plan that has its final year in fiscal 2019, sets forth "Contribute to achieving a sustainable society" as one of its key initiatives. Under the plan, we have implemented various CSR activities, such as manufacturing products that contribute to the reduction of environmental impact, toward new growth. By incorporating the viewpoint of the SDGs into these CSR activities to help resolve social issues, we aim to conduct business operations that delight people around the world. The Lintec Group has identified materiality, and set key performance indicators (KPIs)*, so as to implement PDCA cycles efficiently for strategic CSR activities. In addition, the Group promotes business operations and CSR activities based on international standards by participating in the United Nations Global Compact and referring to ISO 26000.

* Key performance indicators (KPIs): KPIs are important indicators related to organizational strategies, and quantitatively measure progress toward targets.

CSR Promotion System

The CSR Management Office under the direct control of the president strives to foster high ethical standards, disseminate information on CSR, and support the initiatives of relevant committees. The committees, which are each led by a corporate officer and have a cross-organizational membership, lead initiatives with responsibility from the standpoint of management.

In addition, the SDGs Committee shared understanding on the correspondence relation between Materiality items and SDGs and determined the relevant current situation. Officer in charge of Corporate Ethics Committee Officer in charge of promoting Social Tsunetoshi Mochizuki, Director, Senior Managing Contribution Committee Executive Officer Shuji Morikawa, Managing Executive Officer

Officer in charge of promoting CSR Committee Officer in charge of SDGs Committee Masaaki Yoshitake, Senior Executive Officer Takeshi Kaiya, Director and Managing Executive Officer

Legal Education for Top Management and Employees

To promote understanding of corporate legal affairs, Lintec provides directors and executive officers with a top-management training program. In fiscal 2019, we held two training sessions, one on the theme of "M&A and Directors' Responsibilities" in October 2019, and the other on "Transfer Price and Revenue Recognition" in January 2020. As for training for employees, we implement legal training for salespersons (around eight times a year) geared to selected midlevel employees in charge of sales. We are also incorporating legal lectures into annual group training programs for newly appointed managers and newly appointed section chiefs. In addition, Legal News is published six times a year to provide notable information related to legal affairs to employees of the Lintec Group. Through these training programs and information dissemination, we help employees to enhance their cognizance of potential legal risks lurking in daily business activities, which is expected to lead to early risk detection and response.

Legal News published in fiscal 2019

Publication month No. Title

Witness the transformation of our time!-Amendment of the May 2019 28 Civil Code (1)

Witness the transformation of our time!-Amendment of the July 2019 29 Civil Code (2)

Ignorance is inexcusable!-Export control and regulation and October 2019 30 our company rule

November 2019 31 Unfair Competition Prevention Act

January 2020 32 Insider trading regulations

March 2020 33 Summary of news between April 2019 and March 2020 Related Data

Outside Directors

Director Hiroya Kakehashi enhances the supervisory function of (General Manager, Corporate Lintec's Board of Directors by drawing on his long years Planning Divisoin, Nippon Paper of experience, as well as the knowledge and experience Industries Co., Ltd.) he acquired in an administrative capacity, at Nippon Hiroya Kakehashi Paper Industries Co., Ltd.

Akiko Okushima enhances the supervisory function of Director Lintec's Board of Directors by drawing on her broad (Representative Director and expertise in marketing, as well as the knowledge and President, JBtoB CO., LTD.) experience she has acquired through serving as Akiko Okushima president for many years at a company in a different industry.

Director/ Audit & Supervisory Satoshi Ohoka enhances the auditing and supervisory Committee Member functions of Lintec's Board of Directors by drawing on his (Lecturer, Chuo University experience in policy-based financial institutions, his rich Graduate School of Commerce; international experience, his specialized academic Outside Director, Ryobi Limited) experience, and the knowledge and experience he Satoshi Ohoka acquired as an outside director in other industries.

Kanako Osawa enhances the auditing and supervisory Director/ Audit & Supervisory functions of Lintec's Board of Directors by drawing on Committee Member her advanced legal knowledge, broad insights, and (Lawyer at Kajitani Law Offices) knowledge and experience acquired in corporate legal Kanako Osawa affairs in and outside Japan.

(As of July 1, 2020)

No. of Board of Directors meetings

No. of meetings : 14 Attendance of directors : 100% Attendance of outside directors : 100%

No. of Audit & Supervisory Committee meetings

No. of meetings : 13 Attendance of committee members : 100% Attendance of outside committee members : 100%

All employees at the Lintec Group are committed to disciplining themselves based on the corporate motto of "Sincerity and Creativity". "Compliance self-check sheet" and "compliance training materials" are published in the Lintec intranet. All employees use these materials for checking their conduct and conducting compliance learning activities in their departments.

Global Surveys on Human Rights and Labor Standards

The Lintec Group conducts a survey once a year to monitor working conditions and human rights. The survey covers a wide range of items, including legal compliance, elimination of discrimination, respect for human rights, prohibition of child labor, prohibition of forced labor, wages, working hours, dialogue and negotiation with employees, safe/healthy working environments, and human resource development.

As a result of the survey in February 2020★, it was confirmed that all sites comply with local and regional laws and regulations, that the Lintec Group Compliance Guidelines are well understood by employees, and that Lintec employees work in a healthy and safe working environment where their fundamental human rights are respected.

We will continue this regular survey every year to understand our current conditions, and improve them.

★ For detailed data, click here

Compliance with the Antitrust Law & Prevention of Corruption

In 2013, the Lintec Group created an Antitrust Law Compliance Manual, copies of which were handed out to employees at sales divisions. The Group also provided relevant guidance to salespersons during legal training sessions, specifically referring to reported cases of violations at other companies involving cartel formation and resale price maintenance agreements. In December 2019, we published a Manual for Compliance with the Antitrust Law and the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, which is a completely revised version of the aforementioned manual. The new manual was distributed to managers, including those of Group companies. Moreover, in March 2020, we compiled a List of Do's and Don'ts, which illustrates potential legal risks existing in everyday duties. The Group also works to prevent bribery and corruption, incorporating the topic into the Compliance Guidelines, a booklet distributed to employees to raise their compliance awareness. Issuing Legal Newsletter

The Lintec Group issued Legal News (Vol.28-33) from April 2019 to March 2020 to provide legal information to employees.

Vol. 28 Witness the transformation of our time!—Amendment of the Civil Code (1) Vol. 29 Witness the transformation of our time!—Amendment of the Civil Code (2) Vol. 30 Ignorance is inexcusable!—Export control and regulation and our company rule Vol. 31 Unfair Competition Prevention Act Vol. 32 Insider trading regulations Vol. 33 Summary of news between April 2019 and March 2020

Following the issuance of Legal News, e-learning programs were provided via the intranet.

From April to December 2019, salespersons in their 10th or so year at the company attended legal training sessions, provided as part of theme-based programs. Also, newly appointed managers and newly appointed section chiefs received training (about one hour for each) on "legal risks particular to Lintec."

Awareness Raising with the Compliance Guidelines

At the Lintec Group, we issue a code of conduct booklet, "Compliance Guidelines", to enhance each employee's compliance awareness. The Guidelines booklet has been translated into seven other languages to be distributed to employees of Group companies outside of Japan. Following the revision of the Lintec Group Code of Conduct in January 2020, the Compliance Guidelines were also revised and issued in April 2020. We distributed the revised guidelines to all employees of the Lintec Group.

Lintec Group Compliance Guidelines

Fostering Sense of Ethics

Rinri Kawaraban, which started in fiscal 2006, is an intranet ethic news column featuring a short haiku-like poem with an additional explanation to familiarize employees with standards for ethics and conduct. The poems are compiled into a booklet, which is not only used internally but also introduced to suppliers and customers.

Volume 11 was issued under the theme of "Make corporate ethics easier to understand and practice" and introduced a new patrol dog mascot. Tax Compliance

Based on the spirit of the company motto, "Sincerity and Creativity," the Lintec Group properly pays taxes in compliance with the laws and regulations stipulated by the countries or regions where its business sites are located, or by the countries or regions concerned. To practice the proper performance of accounting procedures, which form the basis of appropriate tax payments, we have distributed the Compliance Guidelines (published in seven languages) to all Group employees, in order to raise their awareness and ensure that our daily transactions are carried out in a proper and lawful manner. We do not conduct transactions that are not related to our core business but intended solely for tax reduction. In cases of uncertainty over the interpretation of tax laws, we seek the advice of external professionals. If doubts remain, we seek prior consultation with the tax authorities concerned to ensure that we can pay taxes appropriately. With regard to transactions between Group companies in two or more countries, we strive to appropriately distribute profits between the countries or regions where these companies operate, so as to mitigate transfer pricing tax risks.

The Lintec Group established the Corporate Risk Management Committee in April 2018 to further enhance its risk management system. The committee consists of executive general managers and general managers of offices under the direct control of the president, and holds meetings on a regular basis. The committee strives to prevent problems by clarifying all possible risks associated with company management, and by identifying, analyzing, and assessing the risks to be addressed. The chair of the Corporate Risk Management Committee reports on its activities to the Board of Directors every quarter, thereby sharing information and receiving instructions. In the future, we will intensify our efforts to improve our risk management ability, and grasp risks and opportunities in a timely manner, to facilitate the sustainable growth of the Lintec Group.

Establishing Group-wide BCMS*1

LINTEC Corporation, Tokyo Lintec Kako, Inc., and Lintec Speciality Films (Taiwan), Inc. have developed a BCP*2 to allow them to minimize human casualties and resume business as early as possible after an earthquake or other disaster. Becoming certified under ISO 22301*3 : 2012 in March 2014, we are operating the BCMS to maintain and improve the BCP. We will make continued efforts to share the BCMS among employees to initiate and enhance activities.

*1 BCMS stands for a Business Continuity Management System. It is a management technique to develop a business continuity plan, based on the understanding of the current conditions of the organization, to ensure that the businesses are continued in the event of a serious incident that will or may have grave impact on major products/services of the organization. Drills are also performed to validate the effectiveness of the BCP. *2 BCP stands for a Business Continuity Plan. It is a plan developed in advance to enable the minimization of damage and the continuation or early resumption of business in the event that a company encounters an emergency situation such as an accident or disaster. *3 ISO 22301: An international standard for BCMS that a corporation or organization should follow in establishing and effectively operating a system to prepare for earthquake, fire, trouble in the IT system, financial crisis, bankruptcy of supplier, pandemic, or other natural disaster or accident. BCMS Drill

Employees at each site plan and conduct drills according to the business and characteristics of the site. Details of drills at all sites are shared group-wide via the intranet.

Smoke drill at Komatsushima Plant Emergency portable toilet at Head Solvent firefighting exercise at (Oct. 2019) Office (Jan. 2020) Kumagaya Plant (Nov. 2019)

Group-Wide BCMS Study Sessions

Lintec hosts company-wide BCMS study sessions (collective training) targeting the entire workforce. We hold a face-to-face study session to learn about the basics of BCMS once a year, and offer an e-learning program twice a year.

Improvement efforts

BCMS operation at each site is checked by internal audits. About half of these internal audits are conducted as mutual site audits, which provide employees with opportunities to get to know initiatives at other sites and help improve each other. Suggestions and improvement proposals from employees are discussed at the BCMS Council and reflected in group-wide initiatives. Council meetings are held openly, broadcast at each site using the TV conference system so that employees can watch them.

Information Security

Lintec has developed the Information Security Management Rules, and conducts a self-check every year at each department based on the Information Security Operational Rules and Internal Audit Checklist. In fiscal 2019, Lintec launched an e-learning program for performing an information security self-audit as part of its efforts to promote understanding and raise awareness among employees concerning information management. In light of the fact that the uploading of inappropriate videos has become a social issue, Lintec provides comprehensive education that includes things to note when using social media in a personal capacity, as well as internal rules on information management. Establishing the Counseling Desk (for Internal Reporting and Harassment Consultation)

The Lintec Group has a helpline (internal reporting system) to enable employees to report, without any disadvantage, any serious legal or ethical violations that they identify. Lintec added a third-party lawyer to the helpline system to facilitate prompt investigations while protecting reporters and reported details. Instructions on how to use the helpline are provided in the Compliance Guideline to raise awareness of the helpline across the Group. In May 2019, Lintec established its harassment counseling desk to improve working environments, and the desk has since been in operation. This is a system under which employees can directly consult specialists, including clinical psychologists. Its objective is to help resolve harassment and other workplace issues through cooperation between specialists and the Human Resources Department.

LINTEC Group Internal Control Policy

All departments in Lintec and Lintec Group subsidiaries should develop and enhance an internal control system that prevents fraudulent or illegal practices and errors and ensures adequate and efficient business activities.

All employees and officers have their respective roles and responsibilities in the development and operation of the internal control system. Each department in Lintec and its subsidiaries should conduct a self-assessment from time to time as necessary to check that its operational or administrative processes are being implemented properly and efficiently in compliance with the relevant laws/regulations and internal rules. The internal audit department should be formed as an independent unit from all other departments and conduct audits of individual departments in Lintec and subsidiaries periodically to check that their internal controls are working effectively and efficiently.

Established October 1, 2013 LINTEC Corporation

Lintec Group Code of Conduct

Code of conduct

Guided by the Code of Conduct based on the company motto, "Sincerity and Creativity," officers and employees of the Lintec Group shall act in compliance with high ethical standards and social norms.

[ Sincerity at the Lintec Group ] 1. Respect for human rights We respect the human rights and dignity of all stakeholders. 2. Management and utilization of company assets We strictly manage company assets and utilize them according to specific business purposes. 3. Prohibition of acts involving conflicts of interest We will act in the best interest of the Company and its stakeholders. 4. Anti-corruption We shall not offer or accept any entertainment or gifts that may have the appearance of serving as bribes. 5. Compliance with domestic and international law We abide by all applicable laws and regulations as a corporate group trusted by the global community. 6. Fair and transparent transactions In conformity with the competitive order, we conduct appropriate transactions with customers and business partners. 7. Prohibition of Bribery of Regulatory Bodies and Governments We maintain sound relations with regulatory bodies and governments. 8. Policy on anti-social forces We prevent any involvement with anti-social organizations.

[ Creativity at the Lintec Group ] 9. Sustainable manufacturing and service operations We contribute to the resolution of social issues through our products and services. 10. Enhancement of customer satisfaction To enhance customer satisfaction, we are committed to offering high quality and high added value. 11. Symbiosis with the global environment We strive to reduce the burden of our operations on the environment to achieve harmonious existence with the global environment. 12. Sound workplace environment We create a workplace environment where employees can perform at their full potential. 13. Challenge for Creativity We will take on the challenge of creating new value. 14. Social contribution activities As a corporate citizen, we contribute to the development of more affluent regional and local communities. 15. Building a relationship of trust with society We establish relationships of trust with our stakeholders through appropriate information disclosure and dialogue.

Established January 2003 Revised April 2011 Revised January 2020

Lintec Group Quality, Environmental and Business Continuity Policies

Basic Policy

Dedicated to the company motto, "Sincerity and Creativity", and the Lintec management philosophy, all employees in the Lintec Group practice fair and innovative corporate activities to fulfill our responsibilities to society, including compliance with laws/regulations of Japan and beyond. Lintec subscribes to the following "Quality Policy", "Environmental Policy", "Business Continuity Policy", and "Action Guidelines" to ensure the practical execution of these activities.

Quality Policy

We adhere to the fundamentals of "manufacturing". We shall develop, manufacture and sell "quality", "environmentfriendly" and "safe" products, and pursue the conduction of business activities that are trusted by all stakeholders.

Action Guidelines

1. Develop "people" and a "corporate culture" that work in harmony with different cultures and localities, and contribute to global development by providing the highest possible quality. 2. Identify customers' needs quickly and accurately with a spirit ofcraftsmanship and share the information within the Group. 3. Analyze current conditions constantly with a spirit of craftsmanship, and conduct continuous improvement activities. 4. Improve and innovate daily services and operations in order to provide better products stably and at reasonable prices. 5. Conduct thorough design reviews to build quality into product design at the initial development stage. 6. Apply statistical approaches for all aspects of operations, including production and quality control, to improve data evaluation and management systems. 7. Construct systematic in-house education programs that develop employees that are capable of demonstrating originality in "craftsmanship". Environmental Policy

We work to pass down a healthy planet to the next generation. We prioritize the creation of environmentally friendly products, and actively make efforts to protect the global environment.

Action Guidelines

1. Develop environmentally friendly products. 2. Promote the effective use of resources and implement the 3Rs (reduce, reuse, and recycle). 3. Work for global environmental preservation by managing the chemicals contained in our products. 4. Strive to protect biodiversity. 5. Take the initiative in environmental efforts and continuously improve our environmental activities using the PDCA (plan, do, check and act) cycle.

Business Continuity Policy

We work to create and continually improve the business continuity management system (BCMS) to minimize the impact of any risks that may lead to the interruption of business. Risks include, for instance, natural disasters such as earthquakes, storms and floods, and fires and pandemics.

Action Guidelines

1. Place top priority on the safety of group employees and their families. 2. Always remember disaster risk-reduction measures to minimize the impact of any disaster. 3. In the event of a disaster, endeavor to quickly resume supplies of our main products to fulfill our responsibilities to our customers. 4. Address social challenges from the perspective of the SDGs, as well as contribute to local communities. 5. Provide continuous improvements in the BCMS through the PDCA plan-do-check-act) cycle.

Environmental Charter established April 10, 1992 Quality Policy established August 10, 1998 Quality and Environmental Policy established April 1, 2012 Quality, Environmental and Business Continuity Policy established September 1, 2013 Quality, Environmental and Business Continuity Policy revised January 1, 2014 Quality, Environmental and Business Continuity Policy revised April 1, 2014 Quality, Environmental and Business Continuity Policy revised April 1, 2020 Business Continuity Policy (Action Guidelines) revised August 7, 2020

Lintec Procurement Policy

1. Fair and transparent business practices We shall maintain fair and transparent business transactions with all partners based on the principle of free competition in the market. In selecting business partners, we shall keep our door open wide and make fair evaluations of candidates in the areas of quality, cost, delivery, supply stability, technology, services, and environmental effort. 2. Building partnerships We shall recognize every partner as a "partner for mutual development" and build relationships of trust. 3. Adherence to laws and regulations and social norms In our procurement activities, we not only shall abide by the laws and regulations of Japan and beyond but also require our partners to do the same. 4. Consideration for the environment We shall pursue procurement activities with less environmental impact based on the Lintec Green Procurement Policy,and require our partners to actively conduct environmental conservation activities and strictly manage chemical substances. 5. Thorough pursuit of CSR We shall pursue high level and thorough CSR in our procurement activities together with partners in areas such as respect for human rights, labor health and safety, quality assurance and safety, information security, corporate ethics,and conflict minerals.

Established August 10, 2009 Revised August 30, 2013 Request for Cooperation regarding partnership with Lintec

Lintec will pursue appropriate business development together with its partners. To this end, we ask you to understand the above-stated Lintec Procurement Policy and take specific actions to practice the following. We also ask that your partners understand the same policy and take actions appropriately.

1. Adherence to laws/regulations and social norms; fair business practices Comply with laws and regulations as well as social norms of countries and regions where you operate business, and respond to your stakeholders in a fair, impartial, and sincere manner in all situations. Ensure compliance with applicable laws and regulations Maintain sound and honest relationships with your partners Ensure information security Respect intellectual property 2. Consideration for the environment Recognize environmental issues, represented by climate change, and those posing grave risks to ongoing business operations, and promote appropriate initiatives to combat such issues in various areas, aiming to contribute to creating a sustainable society. Promote environmental conservation activities Manage chemical substances Reduce environmental impact Reduce waste generation Promote biodiversity conservation 3. Respect for human rights; promotion of occupational health and safety Create a workplace environment where all workers involved in your business operations show mutual respect for one another, form relationships without fear of discrimination and human rights abuse, and enjoy working under safe and hygienic conditions. Respect fundamental human rights and prohibit discrimination Prohibit discrimination based on race, nationality, gender, religion, belief, age, familial origin, disabilities, indigeneity, immigration, sexual orientation, gender identity, or for any other reason. Prohibit child labor Prohibit forced labor Take measures against conflict minerals 4. Offer fair prices; build stable supply networks Offer raw materials at consistently competitive prices, exert cost improvement efforts on an ongoing basis, and build networks to ensure stable supply and be able to flexibly respond to unexpected changes in supply or demand. 5. Improve quality and techniques; ensure safety For the purpose of quality maintenance and continuous technical improvement for providing products and services, acquire quality management system (ISO 9001) certifications, observe work and operation manuals, and establish and maintain appropriate and rigorous inspection and production systems. Observe safety standards applicable to each country and region

Lintec Green Procurement Policy

1. Along with partners,we will promote the management of chemical substances in raw materials,paets, and auxiliary materials that go into our products. 2. We will work to prioritize procurement of less-harmful raw materials, parts and indirect materials from partners actively engaging in environmental conservation and management of chemical substances. 3. As for supply chain management, we will demand that partners actively participate in environmental conservation and chemical products management with their respective suppliers. 4. We will proactively promote the use of Green Pulp based on the Lintec Lumber Pulp Procurement Policy.

Established June 1, 2006 Revised August 10, 2009

Lintec Lumber Pulp Procurement Policy

1. Procurement Policy and approach

(1) As a measure to counteract illegal logging, we will not procure the following kinds of wood pulp:

(a) Pulp from illegally logged wood (b) Pulp from trees of regions violating traditional or civic rights (c) Pulp from protected forests (d) Pulp from reforested areas or forests earmarked for certain purposes (e) Pulp from forests with transgenic trees

(2) We will proactively promote the use of Green Pulp.

2. Confirmation of Legitimacy

(1) We will obtain written proof from partners showing that they have abided by each point of the Procurement Policy. (2) In our procurement of wood pulp, we will obtain traceability reports from our partners that indicate wood material logging location, species and quantity. (3) We will keep relevant materials for five years, and we will disclose them as necessary for audits, etc. (4) We will regularly perform internal audits to gauge initiative progress, along with monitoring (surveys and audits) by the Japan Paper Association. We will disclose summaries of the results online.

Established August 10, 2009 Revised June 1, 2010 Revised August 23, 2010

Green-Pulp-Way

Green Pulp Way is Lintec's own concept for eco-friendly products.The company carries out product design and manufacturing for special papers and label sheets based on this concept.The aim is to reduce impact on the global environment and to leave a healthy green planet for future generations.

Green Pulp

Green Pulp is a registered trademark of Lintec in Japan, and is produced through a bleaching process that is elemental chlorine free (ECF). The raw materials for this pulp include trees from lawfully and properly managed forests (including CoC-certified pulp and pulp made from afforestation trees), pulp from reused material, and non-wood pulp.

Background

Lintec promotes the recycling of used paper as an initiative for the effective use of resources. In general, the quality (e.g., strength) of recycled paper tends to be compromised in order to raise the content of used material. Given this tendency, we use selected quality material so as to be able to satisfy wide- ranging quality requirements. Recently, however, it has become difficult to procure used paper, irrespective of quality, due to a growing demand for the material in China and other markets. In order to address this situation, we have reviewed our standards for the content percentage of used paper. Meanwhile, the global warming process is accelerating and intensifying, affecting natural ecosystems and human lives in different ways and giving rise to stronger calls globally for urgent actions to take against the problem. One major approach is pursued by controlling the increasing amount of CO2 emitted from burning fossil fuels, known as a leading cause of global warming, and forests can play a key role in this approach by fixing CO2 taken from the atmosphere. In light of this, for the purpose of controlling the global warming process, it is vitally important to protect forest resources, limiting wood sourcing to that from properly managed forests. In addition, recent studies report that pulp made from wood sourced from such forests (Kraft pulp) emits small amounts of fossil fuel-related CO2 in the paper production process compared to pulp from used paper (deinked pulp). Although recycling used paper is important for the purpose of promoting the effective use of resources, it should be noted that paper recycling may carry a risk of effecting an excessively high content of used paper, resulting in increased emissions of CO2 , a leading GHG. Considering the above situation, we have established a new policy on materials for paper production: primarily use Green Pulp, with deinked pulp also permitted to used as necessary while ensuring optimum content to meet quality requirements. We will also give adequate environmental consideration to the selection and design of raw materials other than pulp and auxiliary materials. Comparison of CO2 emissions related to production of 1 ton of high-quality paper from Kraft pulp (LBKP) and deinked pulp (DIP)

* Based on Survey Report on Recycling of Used Paper and Relevant Environmental Impact (March 2001, Paper Recycling Promotion Center)

*1 CO2 emitted from the burning of fuels of biological origin, such as those derived from plants. In paper production using Kraft pulp, wood lignin and other ingredients can supply biomass fuels to meet a large percentage of energy demand.

Upon burning, biomass fuels emit CO2 that has been fixed into the relevant plant from the atmosphere during its growth

process, which means that CO2 emissions from biomass fuels do not increase atmospheric CO2 content.

*2 CO2 emitted from the burning of fossil fuels, such as petroleum and coal. CO2 emissions related to fossil fuels burned for paper production using deinked pulp are double those produced when using Kraft pulp, as indicated in the above chart.

Lintec Occupational Safety and Health Policy

Under the company motto, "Sincerity and Creativity", and the management philosophy of Lintec, all Lintec Group employees shall prevent occupational accidents, create a safe and comfortable workplace environment and actively improve safety and health standards.

1. In conducting business activities, we shall appropriately secure and improve the occupational safety and health of everyone in the Lintec Group. 2. The Company shall always work with all Lintec employees to prevent occupational accidents and diseases, and maintain and enhance the health of employees. 3. We shall conduct risk assessment at production sites, establish occupational safety goals, create and implement action plans for achieving those goals and periodically review the plans for improvement. 4. We shall comply with laws and ordinance agreements, and governmental instructions relating to occupational safety and health. 5. We shall provide education and awareness-building programs on occupational safety and health to people in the Lintec Group to communicate the importance of safety and health in the work place and to enhance employee awareness. 6. We shall disclose the Occupational Safety and Health Policy to external parties appropriately on request.

Established June 1, 2018

Overview of the Lintec Occupational Safety and Health Manual

Plan (planning) Laws and ordinances / safety and health plan, safety and health goals, etc. Do (implementation and operation) Organization, roles, responsibilities, and authority / capacity, education and training, and self-awareness / communication, etc. Check (inspections, patrols, improvements) Monitoring and measurement / internal audits, etc. Action (reviews by management)

The Lintec Group follows the company motto of "Sincerity and Creativity" when conducting its CSR activities. This report explains our CSR activities during fiscal 2019. The Highlight section features an executive dialogue on the future vision of the SDGs Committee, which was inaugurated to contribute to achieving the SDGs and to create new business. The section also presents the voices of stakeholders*. This report publishes certain information that is important for both stakeholders and the Lintec Group.

* Stakeholders include consumers, employees, shareholders, creditors, suppliers, local communities, and government agencies.

Main Channels for CSR Information

CSR Report (Booklet/PDF version) [Booklet] Information on the CSR activities of the Lintec Group is described in a simple manner. [PDF version] Full version is created in English. Abridged version is created in Korean, Chinese (traditional), Chinese (simplified), Malay, Indonesian and Thai.

CSR Website More detailed information on the CSR activities of the Lintec Group is available. [Japanese] https://www.lintec.co.jp/csr/ [English] https://www.lintec-global.com/csr/

Guidelines Referenced

Sustainability Reporting Standards of the Global Reporting Initiative (GRI) Environmental Reporting Guidelines (2012/2018) of the Ministry of the Environment of Japan Environmental Accounting Guidelines (2005) of the Ministry of the Environment of Japan ISO 26000 (Guidance on social responsibility) Reporting Period

This report covers the period from April 1, 2019, to March 31, 2020 (fiscal 2019). It also includes some information up through July, 2020 concerning specific initiatives. Environmental data for 15 group companies outside Japan covers the period from January 1 to December 31, 2019.

Organizations Covered

The scope of this report is arranged as indicated below and follows the same wording. If any information provided diverges from this scope, this is made clear within the text.

Corporate Governance Social Report Lintec: Lintec Corporation Lintec Group: Lintec Corporation plus group companies in and outside Japan Environmental Report Lintec: Lintec Corporation (Head Office, 10 production sites*1 , and Research Center) and Tokyo Lintec Kako, Inc. Lintec and 15 group companies outside Japan: Sites listed above and 15 overseas group companies*2 Lintec Group: Lintec Corporation plus group companies in and outside Japan

*1 10 production sites: Agatsuma, Kumagaya, Ina, Chiba, Tatsuno, Shingu, Komatsushima, Mishima, Doi, and Niihama *2 15 overseas group companies: Lintec (Suzhou) Tech Corporation; Lintec Printing & Technology (Tianjin) Corporation; Lintec Speciality Films (Taiwan), Inc.; Lintec Advanced Technologies (Taiwan) Inc.; Lintec Korea, Inc.; Lintec Speciality Films (Korea), Inc.; PT. Lintec Indonesia; Lintec Industries (Malaysia) Sdn. Bhd.; Lintec Industries (Sarawak) Sdn. Bhd.; Lintec Singapore Private Limited; Lintec (Thailand) Co., Ltd.; Madico, Inc.; Mactac Americas, LLC; VDI, LLC; and Lintec Europe (UK) Limited

Note on the fiscal year of consolidated subsidiaries

The fiscal year of Mactac Americas, LLC, Lintec (Thailand) Co., Ltd., and another 36 consolidated subsidiaries ends on December 31. As the difference between the fiscal year end of these 38 consolidated subsidiaries and the consolidated closing date is within three months, consolidated financial statements use each company's financial statements based on the fiscal year, and make necessary adjustments with regard to important transactions that occurred between the two accounting dates.

Verification of the reliability of this Report

★ Performance indicators marked by an asterisk have been verified by a third party, SGS Japan Inc. As a result of third-party verification, no important issues that require correction were found.

★ For detailed data, click here

At the beginning of the Message from the President, he clearly states that "We will take another step forward by implementing CSR activities based on the company motto, 'Sincerity and Creativity,' through concerted efforts of all employees." As exemplified by this statement, the first impression created by the Lintec CSR Report 2020 is that Lintec takes the attitude of greatly valuing its employees as stakeholders. In fact, in 2018 the company established the SDGs Committee, the meetings of which have functioned as a forum for frank discussion of the future vision of the company among employees with a wide variety of roles gathered together from different departments. The respective Keisuke Takegahara Lintec business sites have implemented various CSR activities, Executive Officer displaying characteristics of a global corporate group. This report Deputy Chief Research Officer carefully describes the company's CSR initiatives, and introduces the Development Bank of Japan Inc. voices of diverse employees from a future-oriented perspective in the "My Next Stage" section. In this manner, the report provides a wealth of information on Lintec's CSR activities focusing on employees. That information plays a role in specifically conveying to readers the important value upheld by the company in the form of the "LINTEC WAY," and constitutes a major characteristic of this report.

In recent years, ESG investment has gained increasing sway as an investment approach that focuses on non-financial value, such as environmental, social, and governance factors, to identify the long-term potential of businesses. A CSR report is an important source of information also in terms of ESG investment. In particular, after the novel coronavirus pandemic is over, companies are expected to assume more significant roles than before with regard to the social aspect, in other words, as employment bases. In this respect, it can be said that this report has truly great potential. I would therefore like to note what I will be looking forward to in future Lintec CSR reports, from this viewpoint. The key to linking the value of this report focusing on "human resources" with the logic of ESG investment lies in the creation of "an environment that enables each individual employee to maximize his or her abilities" to generate innovation. This is stressed by President Hattori in his message and in the Dialogue on the SDGs in the Highlight section. I recommend establishing a narrative to underpin the report by considering the following three points. (1) As for your competitiveness, what kind of risks and opportunities will the company encounter due to changes predicted to occur in the external environment in the future? (2) What is the innovation that can translate these risks and opportunities into new growth? (3) In what way will the company develop human resources who can bring about innovation by exercising their abilities to the full? I hope that, following the narrative, Lintec will organically integrate its long-term growth strategies and business attitudes that attach importance to "human resources." In establishing this narrative, it is extremely useful that the company places emphasis on the SDGs. This is because Lintec will be able to achieve its corporate growth while at the same time resolving social issues by making effective use of the SDGs for identifying the forthcoming risks and opportunities, in conjunction with the long-term vision that is under discussion.

In the process of considering this narrative, I advise viewing non-financial factors that have tremendous impact on long-term growth (sustainability of the business model) as "materiality". In so doing, Lintec can naturally define its materiality that is currently under review. I presume that the company will identify its materiality with the two key phrases-"environmental contribution" through products and services, and "power of human resources"-that are consistently upheld throughout this report. For example, the rapid advancement in digitalization that will characterize the post-coronavirus age will offer great opportunities for electronic and optical technologies of your company, while simultaneously having a tremendous impact on society on the environmental front through improvements in customers' productivity. I advise Lintec to consider materiality in terms of both the "value" that the company provides society through business, and "human resources" as the foundation for supporting that value. I believe this dual approach will allow the company to define its materiality in a way that represents Lintec's long-term growth in an easy-to- understand manner.

I hope that Lintec, by harnessing its potential, will evolve its CSR report to convey the company's strength to a wider range of stakeholders, while capitalizing on the distinctive features created by valuing employees. Response to Third-Party Opinion

We are grateful to Mr. Takegahara for his third-party opinion about our 2020 CSR report. This is the first time we have invited his opinion. We are pleased that he rated highly the report's latent potential in relation to the Lintec Group's attitudes of valuing employees and the role it plays as an employment base.

In line with his suggestion, we will organically integrate the identification of risks and opportunities based on the SDGs, our corporate growth driven by innovation, and the development and effective use of human resources, into a single narrative, thereby facilitating the resolution of social issues and the compan's growth.

As for materiality, I believe that our company should implement the SDGsrelated initiatives as part of daily operations as a matter of course. We will identify key initiatives that will lead to our long-term growth, from the perspectives of both "providing value" that is instrumental in resolving social issues and "developing human resources" that serve as the foundation for the growth.

We will take seriously the opinion received and promote CSR management based on the company motto of "Sincerity and Creativity" together with all employees. We aim to be a company that contributes to addressing global challenges through manufacturing with a sense of mission, and to developing a sustainable society.

Makoto Hattori Representative Director, President, CEO and COO LINTEC Corporation

In the Lintec Group CSR Report 2020, performance indicators for environmental and social areas marked with a star (★) have been verified by a third party, SGS Japan Inc.

Verification Statement (Environment) [PDF: 203KB] Verification Statement (Sociality) [PDF: 282KB]

Financial and Non-Financial Highlights

Financial (consolidated) Human Resources Social (non-consolidated) Environmental

Financial (consolidated)

Sales Operating income

Sales by segment (Fiscal 2019) Ordinary income Profit attributable to owners of parent Dividend per share

Total assets ROE*12 /ROA*

*1 ROE: ROE stands for Return on Equity. It is an index for R&D expenses financial analysis that shows how much profit was generated from shareholders' equity (net asset). *2 ROA: ROA stands for Return on Assets. It is an index for financial analysis that shows how much profit was generated from total assets. Human Resources

Number of employees (consolidated) Percentage of paid leave taken (non- consolidated)

Number of participants in rank-based training programs (non- consolidated/total)

Social (non-consolidated)

Community support expenses Response rate of CSR procurement supplier survey Environmental

CO2 emissions Total energy use (crude oil equivalent)

Organizations covered: Lintec Corporation (Head Office, 10 Organizations covered: Lintec Group in Japan*2 production sites*1 , and Research Center) and Tokyo Lintec Kako, Inc.)

*1 Production sites: Agatsuma (Gunma Prefecture), Kumagaya, Ina (Saitama Prefecture), Chiba (Chiba Prefecture), Tatsuno, Shingu (Hyogo Prefecture), Mishima, Doi, Niihama (Ehime Prefecture), and Komatsushima (Tokushima Prefecture) *2 Lintec Group in Japan: Lintec Corporation and its sales offices; Tokyo Lintec Kako, Inc.; Printec, Inc.; Lintec Services, Inc.; and Lintec Commerce, Inc.

Water usage Waste discharge

Organizations covered: Kumagaya and Mishima Plants Organizations covered: Lintec Corporation (Head Office, 10 production sites, and Research Center) and Tokyo Lintec Kako, Inc.

Many stakeholders support the business of the Lintec Group. To meet these stakeholders' expectations, the Lintec Group places its corporate motto "Sincerity and Creativity" at the center of its CSR structure, and actively conducts its CSR activities. The following is our performance data for key stakeholders.

Customer Relations

No. of patent applications Acquisition of ISO 9001 certification Total participants in quality education program Ratio of quality accidents

Supplier Relations

Questionnaire survey response rate Questionnaire items (overview)

Employees Relations

Number of employees by gender Employment rate for Persons with Disabilities Number of Job Return Program Users Employment of Older Persons Status of the Lintec Forest Employees by region and by gender Local employees at sites outside Japan Three-year turnover of employees hired as new graduates New hires and retirees Program users Company-wide rank-based training programs Participants in environmental education Self-development Correspondence Training Course Participants Occurrence of accidents resulting in absence from work Accident-free hours achievements Construction Safety Conferences Disaster drills at plants Community Relations

Community Support Expenses Community cleanups Blood Donation A plant and facility tour

Environment

Medium-term targets and results Number of environment-friendly products developed Total energy use (crude oil equivalent)

CO2 emissions (non-consolidated)

CO2 emissions and transportation volume in distribution Energy usage Waste flow Waste discharge Process from Water Intake to Effluent Water usage (Kumagaya and Mishima Plants) Effluent treated (Kumagaya and Mishima plants) Effluent Water Quality Emission and transfer of toluene Status of Proper Storage and Management of PCB Percentages of solvent-free printing-related adhesive products and release paper Environmental conservation costs Environmental conservation effects VOC emissions (Outside of Japan) Electricity usage (Outside of Japan) Fuel (light oil and natural gas) usage (crude oil conversion) (Outside of Japan) Material Flow (Japan only)