IR Briefing for 1Q
Fiscal Year ending March 2019

October 2018
Inabata & Co., Ltd.
1

Contents
P.3-

Summary of the Company

P.9-

Medium-Term Management Plan NC2020

P.13- NC2020 Year1 Progress (FY3/2018)
P.23- Returning Profits to Shareholders
P.27- Corporate Governance
P.33- Summary of Financial Results – 1Q FY3/2019
P.39- Reference* In this document, Net income = Net income attributable to owners of parent

2
Copyright © INABATA＆CO., LTD. 2018

Summary of the Company
About Inabata:
1. Founded in 1890
Founded in Kyoto in 1890 as Inabata Senryoten – animporter of dyestuffs
The business was later expanded, with the focus on
chemicals

Inabata Dye Shop
(Nishijin, Kyoto)

Asia

EuropeThe Americas
China

2. A globally expanding, multi-faceted
trading company

Japan

India

SE Asia

Around 60 locations deployed across 18 countries
Business functions include market development; manufacturing &processing; logistics; finance etc.
Planning and proposals based on expertise and know-how of products
and markets
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Summary of the Company
3. 5 Business Segments
Operating in 5 segments:Information & Electronics, Chemicals,Life Industry, Plastics and Housing & Eco Materials
Lumber, laminatedtimber, adhesives,
stairs, housing
equipment

Housing &Eco Materials
Life
4%
Industry

7%
Chemicals

8%

FY 3/18
Sales
621.1 billion
JPY

Materials for pharmaceuticals andhousehold products, agriculturaland marine products

Resin and rubber materials,
materials and additives for paints,
inks, adhesives

Plastic materials, compounds,various film and sheet products

Plastics
46%

Information& Electronics

35%
LCD components, inkjet and toner
materials, LED materials

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Regional Business Development
Operating in Japan and at about 60 locations in 18 countries

Inabata Group Sales by region
Japan
47.2％

26 bases of operation in 9
countries, including Singapore
and Thailand

23 bases of operation in 2
countries - China &South Korea

Northeast
Asia

Southeast
Asia

22.4％

FY 3/18 Sales

25.4％

621.1 billion JPY
5 bases of operation in 4
countries, including UK& France

Europe1.7％

The
Americas(NB) No. of overseas countries and operation bases as of 1 July 2018
(NB) No. of operation bases includes bona fide Inabata & Co., Ltd. affiliates

3.3%

10 bases of operationin 3 countries,
including USA &Mexico5
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Inabata’s Wide Range of Capabilities
Highly specialized people
empowered with cutting edge information

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Inabata’s Strengths [Manufacturing and Processing]Our strategy involves expanding our trading business by swiftly grasping with information
regarding development of new products and market trends by drawing on our worldwide
processing bases and trading company offices.
Plastics compounds: Formed by adding flame
retardants and other additives to raw plastic

Compounding
facility

Plastics
manufacturer
Proposal

Information

Collaboration

Component
manufacturer
Information

Product
manufacturer
ProposalInquiries on plastics andcoating materials

Information onmaterials

Tradingcompany office
Expanding trading businessby leveraging ourmanufacturing capabilities
Trading company capabilities

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Inabata’s Strengths [Plastic Compounding Facilities]
China

Plastics Compound
Business Office(2 sites)
52,200 MT/Y

(Japan)・Shares information
・Coordination of facilities and raw
materials
・Reduces costs by purchasing inbulk

Vietnam
36,000 MT/Y

Philippines

Thailand

10,800 MT/Y

38,400 MT/Y

Building and dismantling of plants in line with customers’ relocation strategy
Providing consistent quality of service, anywhere.

Malaysia
27,600 MT/Y
Indonesia
37,200 MT/Y
217,200 MT/Y: 8 sites in 7 countries (as of April 1, 2018)

Mexico15,000 MT/Y
8
Copyright © INABATA＆CO., LTD. 2018 Medium-Term Management Plan

New Challenge 2020 (NC2020)

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IK Vision 2030 - What Inabata envisions
What Inabata envisions to be in years around 2025 to 2030
Function：
Further enhancing multi-faceted capabilities such as manufacturing,logistics and finance, in addition to trading.
Scale of operation：
Achieving more than 1 trillion JPY in consolidated sales in early stage.
Sales and operating income generated outside of Japan：
70% or more
Portfolio ：At least one-third of sales and operating income from business segments
other than Information & Electronics and Plastics segments.
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Medium-Term Management Plan NC2020
Quantitative Targets
Four-year medium-term management plan with FY 3/2021 as its final fiscal year
Quantitative Targets

FY3/2021

Sales

730 billion JPY

Op. Income

15.5 billion JPY

Current Profit

16.0 billion JPY

Net Income

12.0 billion JPY

Net D/E Ratio

0.4X or less

Assumed Exchange Rate(*) Net D/E Ratio = (Int. Bearing Debt – Cash & Deposits) / Equity Capital(*)

USD1=110 JPY
11Copyright © INABATA＆CO., LTD. 2018

Medium-Term
Management
Plan NC2020– Key Initiatives
中期経営計画ＮＣ２０２０
重点施策
１

Further broadening and deepening of businessoutside Japan

２

Focus on markets with growth potential and sectorsthat have yet to be developed

・ Continual development of the automotive, life science & medical, and environment & energy sectors
・ Launching new initiatives in the food business, including in the field of agriculture・３

Further enhancement of information infrastructure essential for
global management

・ Setting priority on what is best as a group
・ Further enhancement of global business management and standardization

４

Stepping up investments to expand trading business・ Making minority investments primarily to expand trading business・ Considering majority investments but with limited risk and scale

５

Continual review of assets and enhancement offinancial standing

６

Establishing global human resources management
12
Copyright © INABATA＆CO., LTD. 2018 Medium-Term Management Plan

NC2020 Year1 Progress (FY3/2018)13
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“NC2020” – Year 1 Progress Status Difference Between FY3/18 Results and Targets(billion JPY)
FY3/18Results(A)

Sales

NC2020 FY3/18
Target(B)

Difference withTarget% Achieved (A)/(B)

621.1

630.0

-8.8

98.6%

Op. income

5.9

12.5

-6.5

47.7%

Current profit

6.3

13.0

-6.6

49.0%

Net income

6.7

10.0

-3.2

67.4%

Net worth equity ratio
Exchange rates

40.0%
USD 1 = JPY 110.85

－

－

－

USD 1 = JPY 110.00

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NC2020 Progress (per business segment): (1) Information & Electronics（billion JPY）

FY3/18Results(A)

NC2020FY3/18 Target(B)% Achieved(A)/(B)

214.9

229.0

93.9％

261.0

Op. income ‐2.04

3.70

－

4.40

NC2020300［Sales］

261.0

229.0

214.9

Sales

200

100

 Large sales decline due to discontinuation of solar cell-related transactions
at European operating bases; operating loss due to recording allowance for
doubtful accounts

0
FY3/18

FY3/18

FY3/21(Result) (Target)(Goal)

6

 The liquid crystal-related business was solid on the profit front supported
by strong sales of polarizing film materials in Japan, despite loss of market
share in China and Taiwan amid fierce competition on pricing of large
polarizing films.

［Operating Income］

3.70

4

4.40

2
0
FY3/18-2

FY3/21
Goal

FY3/18

FY3/21(Result) (Target)(Goal)

 Further developed LED and IT related businesses alternative to solar cells

Profit drivers

Growth drivers

•

•
•

•

Parts and materials for liquid
crystal displays
Parts and materials forphotocopiers and printers

Business related to lithium-ion batteries
Development of business involving “storing,
releasing and saving energy,” in addition to“energy generation”

-2.04

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NC2020 Progress (per business segment): (2) Chemicals
FY3/18Results(A)

NC2020FY3/18 Target(B)% Achieved(A)/(B)

51.5

52.0

99.2％

61.0

Op. income 0.25

1.20

21.6％

1.60

NC2020（billion JPY）
80

［Sales］

61.0

52.0

51.5
40

Sales

FY3/21Goal

 Sales nearly achieved target due to business growth, but operating
income fell far short of target due to recording an allowance for
doubtful accounts
0
FY3/18

FY3/18

FY3/21(Result) (Target)(Goal)

2［Operating Income］

1.60

 International sales of paints, ink-related materials, and intermediates
increased.
 Sales of materials for heat-dissipating parts grew steadily. Focused onsales of heat-dissipating materials for China and North American
markets.

1.20
1

0.25

Profit drivers

Growth drivers•••

Materials for automotive parts
Coatings (paints and inks)•

0
FY3/18

FY3/18

FY3/21(Result)(Target)(Goal)

Heat-dissipating parts (Sekisui
Polymatech Co., Ltd. )New products such as plastic
compounds reinforced with glass wool

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NC2020 Progress (per business segment): (3) Life Industry（billion JPY）
80

42.3

NC2020［Sales］

NC2020FY3/18 Target(B)% Achieved(A)/(B)

42.3

47.0

90.2％

65.0

Op. income 1.92

2.00

96.0％

2.80

65.0

Sales

47.0

40

FY3/21Goal

 Steady growth in pharmaceutical ingredients and home productsrelated business Solid sales of salmon and other marine products in the U.S.

0
FY3/18

FY3/18

FY3/21(Result) (Target)(Goal)

4

2

FY3/18Results(A)［Operating Income］

1.92

2.80

2.00

 In advanced medication field and Hokkaido agricultural products(cultivation business*), progress slowed.
 For food products, reorganized sales system, including domestic
subsidiaries to increase sales.
* Blueberries, pumpkins, garlic, etc.
Profit drivers

Growth drivers•••

Pharmaceutical ingredients (new drugs)
Materials for home products•

0
FY3/18

FY3/18

FY3/21(Result)(Target)(Goal)•

Advanced medication such as
regenerative medication.
Agricultural products, particularly
blueberries
Develop new business models(agriculture and food processing)17
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NC2020 Progress (per business segment): (4) Plastics（billion JPY）
400

286.9

NC2020［Sales］
273.0

308.0

200

FY3/18Results(A)

NC2020FY3/18 Target(B)% Achieved(A)/(B)

286.9

273.0

105.1％

308.0

Op. income 5.54

5.10

108.6％

5.90

Sales

FY3/21Goal

 Strong resin sales overall including automotive-related applications.
Both sales and operating income exceeded targets.
0
FY3/18

FY3/18

FY3/21(Result) (Target)(Goal)

8［Operating Income］
5.54

5.90

 Mexico compound facility struggled on profit front, but prototyping
made progress and income are expected to improve from FY3/19.
 Will continue to increase sales focused on global customers throughdomestic/international coordination.

5.10

4

Profit drivers

Growth drivers

•

•
•

•

0
FY3/18

FY3/18

FY3/21(Result)(Target)(Goal)

Plastics for the automobile, officeequipment, and home electrics sectors
Film-related products, including
manufacturing and processing

Sales to global users
Further expansion in international
business (regionally and in different
fields)18
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NC2020 Progress (per business segment): (5) Housing & Eco Materials（billion JPY）
50

FY3/18Results(A)

25.1% Achieved(A)/(B)

25.1

28.7

87.6％

34.7

Op. income 0.15

0.30

52.3％

0.60

［Sales］
34.7

25

NC2020FY3/18 Target(B)

NC2020

28.7

Sales

FY3/21Goal

 Sales fell short of target amid stagnant growth in international andhousing-related businesses.
0
FY3/18

FY3/18

FY3/21(Result) (Target)(Goal)

 Operating income fell greatly below target due to increase inadministrative expenses.
 Sales of particle boards made from scrap wood grew.

0.8［Operating Income］

0.4

0.60

0.30
0.15

0
FY3/18

FY3/18

FY3/21(Result)(Target)(Goal)

 Focused on construction materials (new applications) and nonhousing fields.
Profit drivers

Growth drivers•••

Materials for major homebuilders andhousing equipment manufacturers

International markets (flooring, etc.)
Non-housing fields of business(urethane materials, wood chips, etc.)

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NC2020 Investment
Stepping up investments to expand trading business（billion JPY）

Growth investment
Fixed investment
Total

FY3/18Results

3.86 billion JPY
1.59 billion JPY
5.45 billion JPY

 Major growth investments in FY3/2018• Chemicals segment:
Investment outlay of 1.88 billion JPY (Automotive and heat-dissipating parts business)•

Information & Electronics segment:
Investment outlay of 0.49 billion JPY(2 investments in the environment & energy-related business)•

Plastics segment:
Capital investment of 0.52 billion JPY (Resin compound related, Inflation molding related)

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NC2020

Difference Between Year 2 Targets andForecasts by Business【Sales】（billion JPY）
Information & Electronics

ChemicalsLife Industry

Plastics

Housing & Eco Mat.

Other

800.0

600.0

400.0

200.0

25.1

660.0

660.0

621.1
0.1

27.0

0.2

29.7

305.0

285.0

42.3
51.5

45.8
54.0

54.0
56.0

214.9

228.0

235.0

FY19/3

FY19/3

Forecast

NC2020Target

286.9

0.3

0.0
FY3/1821

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NC2020（billion JPY）

Difference Between Year 2 Targets andForecasts by Business【Operating Income】
Information & Electronics

Chemicals

15.0

0.10

Life Industry

Plastics

Housing & Eco Mat.

13.50

13.50

0.30

0.40

5.90

5.30

2.00
1.20

2.30

12.0

5.96

9.0

0.12

5.54
3.0

-3.0

0.20

0.15

6.0

0.0

Other

1.92
0.25
(2.04)
FY18/34.00

1.30
Decline of solar cell but LCD
remaining steady

4.00

FY19/3

FY19/3

Forecast

NC2020Target22
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Returning Profits to Shareholders (1)Policy for returning profits to shareholders

Total Return Ratio of 30-35% (target)【 Treasury stock 】●Retirement of treasury shares ●Acquisition of Treasury shares(August 2014)（Details for FY 3/2018）

No. of Shares Retired: 1,660,000

No. of Shares Acquired: 400,000
Value of Shares Acquired: 679 million JPY
Acquisition Period:15th Nov.-13th Dec. 2017(equivalent to 2.55% of the total no. ofshares issued and outstanding prior to
retirement)

Total Return Ratio (%) = (amount of dividends + amount of treasury shares acquired) / consolidated net income x 100

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EPS Trends
(JPY)

200
171.86151.91 156.25

160
137.01 137.20
120

111.3497.45

109.92104.29

80
40
(355)

(439)

FY 3/12(Result)

FY 3/13(Result)

(604)

(707)

(891)

(679)

FY 3/15(Result)

FY 3/16(Result)

FY 3/17(Result)

FY 3/18(Result)

0
FY 3/11(Result)

FY 3/14(Result)

FY 3/19(Forecast)(NB) The figures in brackets at the bottom of the bar chart show the amount of treasury shares acquired during the period
24(JPY million).
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Returning Profits to Shareholders (2)Trends in Annual DPS & Shareholder Return Indicators(JPY)

Dividend

50

Dividend Payout Ratio

Total Return Ratio

60.0%

45
40

40

50.0%

36
33

30

40
46.5%

30
26
23.4%

34.8%
31.1%

21

31.1%

20
21.5%

36.4%

23

22.1%

21.9%

24.1%

23.7%

30-35％
Target

40.0%
30.0%

26.2%

25.6%

20.0%

10

10.0%
(355)

(439)

(604)

(707)

(891)

(679)

0

0.0%
FY 3/11(Result)

FY 3/12(Result)

FY 3/13(Result)

FY 3/14(Result)

FY 3/15(Result)

FY 3/16(Result)

FY 3/17(Result)

FY 3/18(Result)(NB) The figures in brackets at the bottom of the bar chart show the amount of treasury stock acquired during the period (JPY million).
(NB) Figures for FY 3/11 include a special dividend of 2 JPY to commemorate the company’s 120th anniversary.

FY 3/19(Forecast)
25

Copyright © INABATA＆CO., LTD. 2018 Corporate Governance26
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Corporate Governance (1)・3 outside directors (of 9 directors)
We aim to enhance supervisory functions and increase corporate value by taking
advantage of the outside directors’ extensive experience and wide-ranging insight
into company business.

Outside Directors
・Yoshimasa Takao
Former Executive Deputy Chairman ; Current Advisor– Sumitomo Chemical Co., Ltd.

Current Director (Outside) –Fuji Oil Company, Ltd.

・Katsumi Nakamura*
Former Executive Vice President – Renault (France),
Former Chairman of the Board– Calsonic Kansei Corp. ;Current Director (Outside) – Kito Corp., Kansai Airports

・Toshiyuki Kanisawa*
Former Representative Director andExecutive Vice President -Tokyo Gas Co., Ltd.
(*) Mr. Katsumi Nakamura and Mr. Toshiyuki Kanisawa are registered as independent, outside officers with the TSE. 27
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Corporate Governance (2)The following initiatives were implemented to enhance governance

1. Established the Nominating and Remuneration
Committee (voluntary)
Ensures objectivity, fairness and transparency with respect to appointing senior
management, nominating director and audit & supervisory board member
candidates, and making decisions on director remuneration• Current membership: 1 internal director (chairperson) and 2 independent
outside directors• Held six times during FY 3/2018

28
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Corporate Governance (3)2. Evaluating the board of directors (self-evaluation)
Objective - To increase corporate value by enhancing effectiveness andtransparency of the board of directors✓FY 3/2016, FY 3/2017
Performed self-evaluation of all directors and audit & supervisory board
members using a survey format✓FY 3/2018
Conducted third-party evaluation⇒In May 2018, disclosed evaluation summary and measures going forward

29
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Corporate Governance (4)2. Evaluating the board of directors (self-evaluation)◆ Tasks and measures taken(1) Continual consideration of mechanisms for identifying and managing risks
We will continue to consider risk management systems (including those
covering subsidiaries outside of Japan), which are key infrastructure
supporting global management.
(2) Development of systems for long-term human resources development withfocus on development of top executives
We will consider and deepen discussions on a succession plan, primarily
through the Nominating and Remuneration Committee.
(3) Further communication between outside directors and audit & supervisoryboard members
This will continue to be conducted going forward.
30
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Corporate Governance (5)3. Strategically Held Shares【Basic view】- Holding such shares establishes, maintains and further develops close business
relations with various companies, increases corporate value in the medium andlong term, and leads to benefits for shareholders.

【Decisions on acquisition, continuous holding and disposal】- The necessity of such holdings is validated on a yearly basis and its rationale
is explained to the board of directors.
Sales of other securities
FY3/15
FY3/16
FY3/17
FY3/18¥730 million¥1,421 million¥5,150 million¥9,106 million

Copyright © INABATA＆CO., LTD 201631
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Summary of Financial Results – 1Q FY3/2019

32
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Consolidated Results Review – 1Q FY3/2019
Sales

：

158.2 billion JPY+6.4％ YoY

Increase from strong performance of mainstay businesses,
led by plastics business3.4
billion JPY +56.0％ YoY
Major increase due to strong performance of mainstay businesses and no recording

Op. Income：of allowance for doubtful accounts that occurred at a European subsidiary in theprevious term

Current Profit：

3.7 billion JPY +33.8％ YoY

Increase from higher operating income

Net Income：

3.7 billion JPY +25.9％ YoY

Increase from higher current profit and further gain on sales ofinvestment securities, despite a rise in tax expense
33
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Consolidated Results Review – 1Q FY3/2019(billion JPY)

Three month Three month
ended Jun. ended Jun.
30,201730,2018(A)

YoY Change
Amount％Full Year
Forecast announced on
May 10, 2018

Achievement(A)/(B)%

Sales

148.7

158.2

+9.4 +6.4%

660.0

24.0%

Op. Income

2.2

3.4

+1.2 +56.0%

13.5

25.8%

Current Profit

2.8

3.7

+0.9 +33.8%

14.0

27.1%

Net Income

2.9

3.7

+0.7 +25.9%

10.5

35.2%

Exchange Rate:
USD/JPY

111.09 109.10 △1.99

110.0034
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Sales Trends
Sales(billion JPY)

1Q

Full Year Forecast(as announced on
May 10, 2018)

Full Year

800

660.0
600

572.1

577.0

586.6

621.1
% Achieved

24.0％

400
200

137.5

147.0

141.4

148.7

158.2

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/190(Reference)
Exchange
Rate:
USD/JPY

1Q
Full Year

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19102.17109.76121.43120.15108.04108.34111.09110.85109.10(*Note)110.00(NB) Estimation at time of release.

35

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Trends in Operating Income
Op. Income(million JPY)

1Q

16,000

Full Year Forecast(as announced on
May 10, 2018)

Full Year

13,50012,616
12,00010,774

11,371% Achieved

25.8％

8,000

5,962
4,000

2,677

3,329

3,109

FY 3/15FY 3/16

FY 3/17

3,488
2,235

0

*Recorded allowance for doubtful accounts at European subsidiary in FY 3/18
1Q: 900 million JPY; Full year: 6,650 million JPY

FY 3/18

FY 3/1936
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Trends in Current Profit
Current Profit(million JPY)

1Q

16,00013,217
12,000

Full Year Forecast(as announced on
May 10, 2018)

Full Year

14,00013,672
12,257% Achieved

8,000

6,374
4,190

4,637

4,000

3,789

2,836

27.1％
3,795

0
FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/1937
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Trends in Net Income(million JPY)

Net Income

12,000

1Q

10,000

Full year forecast(as announced on
May 10, 2018)

Full Year

9,510

10,500
9,687

8,630

8,000

6,744

6,000
4,000

2,898

3,363

2,515

2,938

% Achieved

35.2％
3,700

2,000
0
FY 3/15FY 3/16

FY 3/17

FY 3/18*Recorded gain on sales of investment securities
FY 3/18 1Q: 1,370 million JPY; FY 3/18 full year: 8,380 million JPY; FY 3/19 1Q: 1,660 million JPY

FY 3/19

38
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Reference

39
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Positioning of the Medium-Term Management Plan
New Challenge 2020

IK Vision 2030 was drawn up prior to NC2020(May 2017)
MissionVisionPeople come first, based on the spirit of “love (ai)” and “respect (kei)”, andtogether we strive towards contributing to the development of society.
To continually evolve, serving clients and society, through global operations
and meeting their changing needs.

IK Values
Ethics, aspiration, organization, role, symbiosis
IK Vision 2030
IK Vision 2030 (envisioning ourselves 10 to 15 years in the future)
Medium-term Management Plan
NC2020 (targets for FY 3/2021)
40
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NC2020: Sales Transition by Business Segment
Information & Electronics(billion JPY)

ChemicalsLife Industry

Plastics

1,200

Housing & Eco Mat.

OtherIK Vision 2030

（IK Vision 2030）
1,000

New Challenge 2016

800

600

572.1
24.2

400

200

250.4

577.0

586.6

0.5 24.8 0.1 25.0 0.1
251.1

251.8

1,000.0

NC 2020

660.0

621.1
25.1 0.1
286.9

27.0 0.2
305.0

700.0
32.7 0.3

730.034.7 0.3

299.0

308.0

65.0
61.0

34.6
52.8

41.0
48.1

40.4
48.0

42.3
51.5

45.8
54.0

59.0
59.0

209.3

211.6

221.0

214.9

228.0

250.0

261.0

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21(Result)(Result)(Result)(Result)(Forecast)(Target) (Mid-Term Target)0

Future(10 to 15 years ahead)(NB) From FY 3/17, crane business previously classified under “Other” is classified under “Information & Electronics.” Segment information for FY 3/16 has been prepared on thebasis of the new classification.
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Copyright © INABATA＆CO., LTD. 2018

NC2020: Operating Income Transition by Business Segment(billion JPY)

Information & Electronics

ChemicalsLife Industry

Plastics

27.5

Housing & Eco Mat.

OtherIK Vision 2030

230～240（IK Vision 2030）
22.5

New Challenge 2016

NC 2020

17.5

12.5

7.5

2.5

-2.5

Operatingincome ratio

13.5

12.6
10.7

11.3

0.28 0.15

0.42 0.14

3.73

4.43

0.30 0.10

0.26 0.14
5.39

5.9

5.90

0.15 0.12

1.03
1.07

1.52
1.01

1.82
1.00

4.48

3.83

3.99

FY 3/15FY 3/16(Result)
1.9%

5.54

2.00
1.20

14.5
0.50 0.20
5.60

15.5
0.60 0.20
5.90

2.50

2.80

1.50

1.60

4.20

4.40

FY 3/17

4.00
1.92
0.25
-2.04
FY 3/18
FY 3/19

FY 3/20

FY 3/21(Result)(Result)(Result)(Forecast)(Target) (Mid-Term Target)

2.0%

2.2%

1.0%

2.0%

2.1%

Future(10 to 15 years ahead)

2.1%(NB) From FY 3/17, crane business previously classified under “Other” is classified under “Information & Electronics.” Segment information for FY 3/16 has been prepared on thebasis of the new classification.

42

Copyright © INABATA＆CO., LTD. 2018

Summary of the Company (Business Segment 1)
1. Plastics
Sales(FY 3/18)• Sales of high performance plastics:
For automobiles and motorcycles, home electric appliances, OA
equipment, and electronic components

46% • Sales of plastics, molded plastic products and related materials(286.9 billion
JPY)

For general merchandise, sundry, architectural component, andhealthcare industries• Sales of resins/products for packaging materials and films:
Materials for garbage bags, packaging for industrial use and food
• Manufacture and sales of sheet products for sporting goods
Grip tapes for tennis rackets and baseball bats

etc.

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Copyright © INABATA＆CO., LTD. 2018

Summary of the Company (Business Segment 2)
2. Information & Electronics
Sales(FY 3/18)

35%(214.9 billion
JPY)• Sales of raw materials for polarizing films to polarizing film manufacturers,
and sales of polarizing film to panel manufacturers; also, alignment layermaterials, electronic parts for LCD backlight units, etc.
• Sales of inkjet printer dye and toner ingredients to printer and copier
manufacturers• Materials for solar cells and lithium-ion batteries, LEDs, semiconductormaterials, etc.

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Summary of the Company (Business Segment 3)
3. Chemicals
Sales (FY 3/18)

8%(51.5 billion
JPY)• Sales of raw materials and additives to the resin, rubber,
textile and other industries• Sales of raw materials and additives for use in paints, inks,
adhesives, paper, etc.

4. Life Industry
7%(42.3 billion
JPY)• Raw materials for pharmaceutical intermediates, insect
repellents and insecticides, air fresheners and deodorants,
and cosmetics• Agricultural products (blueberries, fruit juices, frozen
vegetables) and marine products (ingredients for sushi)

5. Housing & Eco Materials
4%(25.1 billion
JPY)• Lumber and laminated timber• Chemicals, resin materials, stairs, flooring, prefabricatedbath units, kitchens, toilets• Recycled products (particle board made from scrap wood,and wood chips for use in wood biomass power generators)
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Copyright © INABATA＆CO., LTD. 2018

Overseas Sales (including exports from Japan)
The Americas
19.4 billion
5.1%

Europe10.6 billion
2.8%
(JPY)

Northeast Asia
205.5 billion
53.9%

FY 3/18
Overseas Sales
381.0 billion

Southeast Asia
145.3 billion
38.2%(61.3% of consolidated net sales)

Southeast Asia
Northeast Asia
The Americas
Europe46
Copyright © INABATA＆CO., LTD. 2018

Sales and Operating Income(Sales: billion JPY)

(Op. Income: billion JPY)

1,200

Sales

35

Op. Income（IK Vision 2030）
1000.0 30

1,000

25

(Target)

800

700.0

730.0

20

660.0

600

561.1 572.1
500.0
466.0

7.6

7.6

200

11.3

13.5

12.6

14.5

10

10.7

7.9

7.6

15

15.5
10.9

400
288.9

586.6

479.9

469.0

442.7

577.0

621.1

7.7

5

5.9

3.5

2.6

0

0
3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10

3/11

3/12

3/13

3/14

3/15

3/16

3/17

3/18

3/19

3/20

NC2020

3/21

Future(10 to 15 years ahead)47
Copyright © INABATA＆CO., LTD. 2018

Overseas Sales and Operating Income
Sales(Sales: billion JPY)

Op. Income(Op. Income: billion JPY)800

（IK Vision 2030） 18

600

14
10

400
6.1

200
1.2

0
JPY:USD
Exchange
rates

1.6

3.3 3.6

2.3

110.2

150.5

170.9

4.2

3.5
1.6 2.0

186.5
185.0
159.3 152.2

3.7 3.9

5.8
4.9 5.1

294.0 305.4
284.3

312.9

6

327.7

2

186.7 211.6

-0.7

72.4

84.1

3/03

3/04

3/05

3/06

3/07

3/08

3/09

3/10

3/11

3/12

3/13

119.9

107.1

104.2

118.0

119.1

114.1

91.0

92.1

81.49

77.74

79.81 100.17 109.76 120.15 108.34 110.85

3/14

3/15

3/16

3/17

3/18

3/19

3/20

-2

3/21
Future(10 to 15 years ahead)

NC202048
Copyright © INABATA＆CO., LTD. 2018

Trends in Equity Capital/Net Interest-Bearing Debt/Net Debt Equity Ratio

Equity Capital

Net Int. Bearing Debt

Net D/E Ratio (Right-hand Axis)(billion JPY)

(X)

160

0.80

146.2
127.6

115.0

141.4

126.0

120

0.60

0.46

0.43
0.37

80

0.30
53.3

55.2
47.0

43.7

40

0.40

0.28
39.4

0

0.20

0.00
End 3/14

End 3/15

End 3/16

End 3/17

End 3/18(NB)
Equity Capital = Net Assets – Stock Acquisition Rights – Non-controlling interests;
Net D/E Ratio = (Int. Bearing Debt – Cash & Deposits) / Equity Capital
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Copyright © INABATA＆CO., LTD. 2018

Trends in Cash Flow(billion JPY)
Operating CF
Real Operating CF*
Investment CF

20
10
0

FY 3/07

FY 3/08

FY 3/09

FY 3/10FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18-10-20(million JPY)
Operating CF
Change in WC
Real Operating CF*
Investment CF

FY 3/07-1,150-3,873
2,723-3,132

FY 3/08-4,257-14,366
10,109-1,359FY 3/09
11,562
19,700-8,138947

FY 3/10
5,976
-968
6,944
-5,529FY 3/118,495-3,74812,243-1,436

FY 3/12-15,534-20,357
4,823-1,629FY 3/13
19,4003,414
15,986277

FY 3/14-764-15,244
14,480-5,467

FY 3/15
8,354-11,179
19,533-3,044* Cash flows associated with operating activities – Cash flows associated with change in working capital
Working capital = Trade receivables + Inventory – Trade payables

FY 3/16
11,866
5,821
6,045
-161

FY 3/17
1,840-9,367
11,2074,504

FY 3/18
5,960-2,249
8,209
5,086

50
Copyright © INABATA＆CO., LTD. 2018



Trends in Share Price

Inabata’s Share Price for the past 10 years
JPY/share51
Copyright © INABATA＆CO., LTD. 2018



Trends in Share Price

Inabata’s share price performance vs. TOPIX for the past 10 years(09/2009=100)

Continuing strong yen

The Great East Japan Earthquake (March)
Bankruptcy ofLehman Brothers Holdings Inc. (Sep.)

INABATALDP wins majority in the election. Start of the Abe Cabinet (Dec.)

52
Copyright © INABATA＆CO., LTD. 2018 IR queries should be directed to:Inabata & Co., Ltd. Financial Management Office, IR Dept.
TEL:81-50-3684-4007 (Contact:Ms. Ryoko Mitsui)
FAX:81-3-3639-6410
E-mail inabata-ir@inabata.com

 A Cautionary Note Regarding Future Estimates
The data and future predictions contained in this document are based on information available andjudgments applicable at the time of the document’s release. Consequently the data and future forecasts
contained herein may include elements that are subject to change, and the reader should be aware that thisdocument and its contents are no guarantee of future performance.
 Re:Numerical Format
Units of ‘billion’, ‘hundred million’ and ‘million’ JPY in this document use figures that have been rounded
down. Consequently there may be some discrepancy between individual values and total values, or values
showing changes between sets of data.
53
Copyright © INABATA＆CO., LTD. 2018