IR Briefing For Q1
Fiscal Year Ending March 2023

October 2022
Inabata & Co., Ltd.

Topics◼ Progress of Medium-Term Management Plan NC2023
Upward adjustment in target figures for the final year
（億円）

（億円） of Shareholder Return Basic Policy◼ Revision
Aside from progressive dividends, add about 50% as a
total return ratio.

◼ Additional Policy on Reduction of Strategic Shareholdings
Aim for a reduction of about 80% over the next five
years (versus end of March 2021)

2

Contents
P.4-

Progress of Medium-Term Management Plan NC2023

P.17- Revision of Shareholder Return Basic Policy
P.22- Additional Policy on Reduction of Strategic
Shareholdings

P.24- Regarding ESG
P.34- Summary of Financial Results for Q1 FY03/2023 andFull-Year Outlook
P.38- Reference* In this document, Net income = Net income attributable to owners of parent3◼ Progress of Medium-Term Management Plan
NC2023

4

NC2023: Basic Policies◼ Second-stage medium-term management plan on the way to our long-term vision, IK Vision 2030
◼ Continues along the same basic trajectory as NC2020, the first-stage plan
◼ Some adjustments have been made based on the degree of achievement associated with targets in
NC2020 and changes in the current business environment.

MissionPeople come first, based on the spirit of "love ( ai )" and " respect ( kei )," andtogether we strive towards contributing to the development of society.

VisionIK Values

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 around 2030)

Medium-term management plan

Second stage NC2023 (targets for FY03/2024)
First stage NC2020 (concluding March 31, 2021)
5

NC2023: Basic Policies◆Inabata’s aspirations for itself in around 2030
Function: Further enhancing multifaceted capabilities (such as
manufacturing, logistics, and finance) in addition to trading
Scale:

Reach consolidated net sales of ¥1 trillion at an early stage

Overseas business: 70% or more
Portfolio: At least one-third of business from segments other thanInformation & Electronics and Plastics[ Formulated May 2017 ]6

Progress in the First Year (FY03/2022) of NC2023◼

Sales and profits exceeded both the first year targets and final year goals of NC2023,
owing to recovery from the sharp drop in earnings caused by the pandemic in FY03/2021
and contributions from increased selling prices of raw materials and a weak yen.
NC2023
FY03/2022
First year actual

NC2023
FY03/2022
First year targets

NC2023
FY03/2024
Final year goals

Net sales¥680.9 billion¥600.0 billion(*1) ¥670.0 billion

Operating profit¥20.0 billion¥14.5 billion¥16.5 billion

Ordinary profit¥21.6 billion¥15.0 billion¥17.0 billion

Profit attributable to owners ofparent¥22.3 billion¥14.0 billion¥16.0 billion

ROE

12.8%

8% or more

8% or more

Net debt/equity ratio

0.17x

0.3x or less0.3x or less

Equity ratio

45.0％

50％ or more

50％ or more

USD1=¥112.39

USD1=¥105.00

USD1=¥105.00

Exchange rate(*1) Sales target based on accounting standards prior to the adoption of the revised revenue recognition methods: 700.0 billion JPY(Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) effective from FY03/2022)(*2) Net D/E ratio = (interest-bearing debt – cash and deposits) / equity capital7

NC2023: Revision of Final Year (FY03/2024) Goals
Results in the first year of the plan exceeded goals for the final year in terms of both sales
and profit, so goals and indexes for the final year were adjusted upward based on thebusiness environment and future outlook.
Numerical goals andperformance indicators
Net sales

NC2023
FY03/2024
Initial goals(*1) ¥670.0 billion

NC2023
FY03/2024
Revised goals(*2)¥800.0 billion

Operating profit¥16.5 billion¥20.5 billion

Ordinary profit¥17.0 billion¥21.5 billion

Profit attributable to ownersof parent¥16.0 billion¥22.5 billion

ROE

8% or more

10% or more

Net debt/equity ratio

0.3x or less0.5x or less

Equity ratio

50％ or more

Approximately 40–50%

Exchange rate

USD1=¥105.00

USD1=¥120.00(*1) Sales target based on accounting standards prior to the adoption of the revised revenue recognition methods: 700.0 billion JPY(*2) Sales target based on accounting standards prior to the adoption of the revised revenue recognition methods: 830.0 billion JPY

8

NC2023: Revision of Final Year Goals
Final year (FY03/2024) goals for sales and operating profit by segment
Information & Electornics
Life Industry
Other（Billions of yen）

1,000.0［Sales］［Operating Profit］

800.0
0.2

670.0
0.2
500.0

（Billions of yen）

20.00

344.8

246.0

52.0
119.0

16.5
0.10

300.8

46.0
77.0

Chemicals
Plastics

20.5
0.10
9.00

7.05
10.00

2.20
1.50

284.0

2.50
2.60

5.65

6.30

Initial goal

Revised goal

0.00

0.0

Initial goal

Revised goal

9

NC2023: Revision of Final Year Goals
No change was made to the six Key Initiatives; Inabata will continue working on them.
【Key Initiatives for NC2023】

1.

Further development of core businesses and horizontal expansion into
growth sectors

２.

Multi-faceted approach to markets with potential for future growth andsteady monetization efforts

3.

Intensification of investment targeting future growth

4.

Further upgrades to global management information infrastructure

5.

Continuous review of assets and further improvement of capital andasset efficiency

6.

Enhancement of human capital utilization efforts
10Key Initiatives for NC2023

1. Further development of core businesses and horizontal
expansion into growth sectors
Segment

Information &Electronics

Key Initiatives•

Enrich LCD and OLED businesses within the Chinese market•

Focus on FPDs for the new generation and peripheral components•

Concentrate on the currently expanding business related to industrial inkjet
printers•

Plastics

Take advantage of global expansion in the plastic compounds business andother operations and achieve business expansion, particularly in theautomotive sector

11Key Initiatives for NC2023

2. Multi-faceted approach to markets with potential for future
growth and steady monetization efforts
Segment
Information &Electronics
Plastics
ChemicalsLife industry（Food and
agriculture）

Life industry(Life science)

Key Initiatives•

Expand our lineup of environmental impact-reducing products•

Conduct multifaceted rollout of initiatives supporting business in the newenergy sector, 5G-related business, and business associated with
automotive applications and mobility•

Accelerate upstream and downstream expansion through wide-ranging
investment and other initiatives•

Strengthen focus on the regenerative medicine sector and other markets

with growth potential

12Key Initiatives for NC2023

3. Intensification of investment targeting future growth◼ We will consider investing in the following sectors and fields to achieve
expansion in the trading business.
Segment
Information &Electronics

Key Initiatives•

Batteries and other elements of renewable energy•

Upstream and downstream domains associated with food products andLife industry

agriculture (especially processing functions)•Regenerative medicine and other growth areas (venture investment, etc.)•

Pursue manufacturing functions with the aim of achieving enrichment in the

Plastics

Chemicals

automotive sector•

Automation and labor saving in manufacturing divisions for compounds, etc.

•

Mobility sector

13Key Initiatives for NC2023
4. Further upgrades to global management information
infrastructure
Key Initiatives•

Embrace new technological trends and promote further digitalization (digital transformation

initiatives)•

Establish a global management information infrastructure that will support security
enhancement, business continuity planning, and new workstyles

14

Key Initiatives for NC2023
5. Continuous review of assets and further improvement of
capital and asset efficiency
Key Initiatives•

Reduce the balance of strategic shareholdings by 50% over three years (initial policy)•

Further reduce strategic shareholdings in the medium to long term, cutting the balance ofstrategic shareholdings at the end of March 2021 by about 80% in the next five years (by theend of March 2027) (addition of new policy)•

The policy is to allocate the funds obtained from the sale of shares held as strategic

shareholdings not to internal reserves but to shareholder returns and investment for future
growth.

15

Key Initiatives for NC2023

6. Enhancement of human capital utilization efforts

Key Initiatives•

Further implement systemic enhancements aimed at supporting global human resource

development and increasing diversity•

Strengthen initiatives targeting employee engagement and new workstyle reforms

16◼ Revision of Shareholder Return Basic Policy

17

NC2023

Returning Profits to Shareholders

Revised the total return ratio in the basic policy for shareholder returns

During NC2023◼ Adoption of progressive dividends
We will ensure that dividend per share does not decline year on year by continually
increasing our dividends◼ Target total return ratio of around 50%
However, in fiscal years when the Company has recorded a considerable amount ofcash inflows from the sale of strategically held shares, instead of being strictly boundedby the target total return ratio, the Company will return profits to shareholders after
comprehensive consideration of various factors including future funding needs, financial
position, stock price, and market conditions.

Note: Total return ratio (%) = (dividend amount + amount of treasury shares acquired) / consolidated net income x 100

18

Acquisition and Retirement of Treasury Shares
Utilizing funds raised from the sale of strategically held
shares, the Company plans to acquire and subsequently retire
treasury shares to increase capital efficiency【Acquisition of Treasury Shares】 (Disclosed on August 5,2022)
Class of shares to be acquired
Number of shares to be acquired
Value of shares to be acquired
Acquisition period: Common shares: 600,000 shares (upper limit): ¥2 billion (upper limit): From August 24, 2022 to October 31, 2022

【Retirement of Treasury Shares】
Retirement of Treasury Shares
August 22,2014
February 16,2022
April 5,2022

Total number of shares retired (shares)
1,660,000
2,700,000
3,085,100*Total number of issued shares after the retirement of treasury shares on April 5, 2022: 57,714,127

19

NC2023

Returning Profits to Shareholders

Annual dividends per share and indicators of shareholder return
(Yen)
150

Dividend

Dividend payout ratio

Total return ratio

200.0%

110115
150.0%

100

50

33
31.1%

36

40

40

48

62.2%

46.5%

31.1%

34.8%

23.7%

25.6%

30.0%

31.9%

27.6%

22.7%

28.1%

27.5%

36.4%
24.1%

53

100.0%

63

29.4%

Approx.
50%
target32.0%

0

Amount oftreasury sharesacquired

50.0%

0.0%
FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23(actual)(actual)(actual)(actual)(actual)(actual)(actual)(actual)(forecast)

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

604

707

891

679

936

425

-

7,499

（Millions of yen）

Note: August 5, 2022 disclosure
Acquisition of treasury shares up to 600,000 shares for maximum purchase price of ¥2 billion, between August 24–October 31, 2022

20

Earnings per Share(Yen)
400.00374.23358.91

229.13211.36188.82200.00137.20151.91

156.25109.92

0.00

（604）

（707）

（891）

（679）

（936）

（425）

（7,499）FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23（actual）（actual）（actual）（actual）（actual）（actual）（actual）（actual）（forecast）

Note: Figures in parentheses at the bottom of the bar graph indicate own-share purchases conducted during the year
(in millions of yen).

21◼ Additional Policy on Reduction of Strategic
Shareholdings

22

Strategic shareholdings reduction policy
In addition to the policy covering the three years of NC2023, added a longerterm policy covering years after that
◼ Maintain the existing policy
Reduce the balance of strategic shareholdings at the end of March 2021 by half during thethree years of NC2023◼ Addition of a new policy
Further reduce strategic shareholdings in the medium to long term, cutting the balance ofstrategic shareholdings at the end of March 2021 by about 80% in the next five years (bythe end of March 2027) ⇒ Funds procured from the sale of strategic shareholdings are inprinciple allocated to shareholder returns and growth investment(billions of yen)
60.0

Strategic shareholdings

Sales of strategicallyheld shares

40.0

50% reduction
80%reduction

20.0

0.0

NC2023
EndEndFY03/21 FY03/22

EndFY03/24

EndFY03/27

FY03/18
FY03/19
FY03/20
FY03/21
FY03/22

Note: The balance of strategic shareholdings in the figure above is the total of the Company’s shareholdingsin listed companies in Japan.

¥9,017 million¥5,298 million¥3,026 million¥2,944 million¥9,367 million
23

◼ Regarding ESG

24

Corporate Governance Structure
June 2022
Transition to Company with Audit and Supervisory Committee
Transition to monitoring-type Board of Directors where independent
outside directors account for more than half
Directors (excluding audit
and supervisory committee
members)

Directors (audit andsupervisory committee
members)

7 persons

4 personsOutsideRatio of independent
outside directors

55％ (6 out of 11)

Outside25

Corporate Governance (1)Experience and expected roles of directors
Inabata, a global business operator, has in place a corporate governance structure that
supports the Board of Directors' decision making and enables the Company to fulfill supervisory
functions over executive officers' business execution.

For an explanation of each skill, please refer to the Notice of Convocation of the June 2022 Ordinary General
Meeting of Shareholders

26

Corporate Governance (2)The following initiatives were implemented to enhance governance

1. Established the Nominating and Remuneration Committee(voluntary) (FY03/2016)
Ensures objectivity, fairness and transparency with respect to theappointment and dismissal of senior management, nomination ofcandidates for directors and executive officers, and determination of
director remuneration• Chairperson : Lead independent outside director• Current membership: 1 internal director and 3 independent outside
directors• Held 12 times during FY 03/2022

2. Evaluating the board of directors (Since FY03/2016)
Objective - To enhance corporate value by increasing theeffectiveness and transparency of the board of directors
27

Corporate Governance (3)3. Officer Remuneration■Remuneration for directors who are not Audit and Supervisory
Committee members*
1) Fixed remuneration
2) Performance-based remuneration:- Profit before taxes (excluding gains on the sale of a portion of strategically held shares)- Return on invested capital (ROIC)- ESG scores from several outside evaluation agencies (FTSE Russell and MSCI)
Performance-based compensation is calculated by multiplying each of the above coefficients.
3) Board Benefit Trust (BBT)Introduced in June 2018 to enhance motivation to contribute to medium- to long-term
expansion in corporate value■Remuneration for directors who are Audit and Supervisory Committee

members
1) Fixed remuneration only

Ratio of performance-based remuneration to fixed remuneration in FY03/2022
Performance-based remuneration
48.9％

Fixed remuneration
51.1%* Remuneration for directors who are not executive directors is fixed remuneration only.

Target:seven directors
Total: 319mn yen
28

Sustainability Initiatives
October 2021

Established Sustainability Committee
Chaired by the Company president; all directors, including
those from outside the Company, participate in the Committee
as a member or observer

November 2021

Formulated the Inabata Group Sustainability Basic Policy andthe Code of Conduct

April 2022

Signed UN Global Compact (UNGC)

June 2022

Announced “2050 Carbon Neutrality Declaration”
Defined materiality issues
Began disclosures in accordance with TCFD recommendations

Under NC2023, Inabata will strengthen initiatives in the environment and energy
sectors, including in the areas of photovoltaic power generation and lithium-ion
batteries, and focus on expanding sales of products that reduce environmental
burden such as environmentally-friendly and recycled resins.

Contribute to realizing a sustainable society while aiming for solid profitability
29

Defining Materiality Issues
June 2022
Established materiality for sustainable growth
Contributing to a decarbonized and circular society, sustainable use ofnatural capita

Creating
Sustainable
Value

Contributing to safety, security, and well-being
Providing value through resilience in procurement and supply functions

Strengthening
Foundation for
Business
Continuity

Respecting human rights in the spirit of love (ai) and respect (kei) andgrowing together with local communities
Fostering and strengthening the human capital driving the value creation
Enhancing governance and risk management30

Products that Reduce Environmental Impact
Expand sales of products that reduce environmental impact, as part of “Multi-faceted
approach to markets with potential for future growth and steady monetization efforts,” a key
initiative in NC2023

Environmental impact reduction product fields
Field

Main contents

Energy & Power

Renewable energy, Alternative
fuels, etc.

Resources & Environment

Sustainable raw materials,
Recycling, etc.

Materials & Chemicals

Low-carbon products, EV・batteries, etc.

Agriculture & Food

Food waste reduction, Soil
health, etc.

Transportation & Logistics

EV charging, Green logistics,
etc.

Environmental certifications

FSC, MSC, ASC, etc.

FY2021: Sales for environmental
impact reduction products
Environmental
Certifications
2%

Energy & Power
11%

Resources &¥18.7 billion Environment
22%（Simple aggregate
value)

Materials &Chemicals
65%

Scope: Inabata Group (worldwide consolidated)*FY2021: No results for “Agriculture & Food“ and“Transportation & Logistics”

Forest Stewardship Council: FSC certification ensures that products come from responsibly managed forests and recycled resources.
Marine Stewardship Council: MSC certification ensures that marine products obtained through sustainable fishing.
31
Aquaculture Stewardship Council: ASC certification ensures that marine products produced through sustainable farming.

Fostering and Strengthening Human Capital
Our strengths are “human resources” and “information”
Identifying issues through engagement surveys to increase HR capabilities, the source of value
creation✓

In HR systems and training, which were issues in FY2021, further enhanced internal recruitment, career development
support system, training for managers, and also introduced a video learning support system
April 2021

May 2022

Trend

1,400
(587/813)

1,697（708/989）↗

Number of employees
surveyed

Total (Inabata & Co., Ltd. / Main overseas trading companies)

Response rate

Total

49％

73％

↗

【Engagement】
I am satisfied with the work I am doing at Inabata now

70％

73％

↗

【Relationship with superiors 】
I have the necessary collaboration with my supervisor at work

75％

80％

↗

【Organizational culture】
When a problem occurs in the course of my duties, my supervisor
and the people around me provide appropriate support

83％

85％

↗

【Corporate philosophy】
I can relate to Inabata’s philosophy, vision and management
policies, and I want to participate in achieving them

70％

73％

↗

【Human resources system and benefits】
Inabata’s salary standards are satisfactory, compared to othercompanies in the same industry

59％

55％

↘

【Human resources system and training】
Inabata supports employee training to improve their skills

41％

48％

↗

【WLB (work-life balance)】
Overtime is kept to a level that is acceptable for me

64％

69％

↗

Main items**Note: The percentage of respondents who chose either (5) Strongly agree or (4) Agree on a five-point Likert scale.

32

Diversity and Inclusion
Diverse workstyles✓ Established remote work and work-from-home systems to accommodate flexible
workstyles (for all employees)

Promoting participation by women✓ Messages from top management communicated through internal
website and newsletters✓ Conducted briefing meetings on changes of positions andinterviews with female employees✓ Expanded work-from-home systems and support in balancing workwith caring for children and seniors, or with treatments for personal
injuries or illnesses

Video message from the
President, posted on theinternal website

Supporting participation by seniors✓ Extended retirement age to 65, established a senior employment contract system and areemployment contract system for employees over 65, and conducted career training
and skills development for employees in their 40s and 50s.

33

Summary of Financial Results forQ1 FY03/2023 and Full-Year Outlook

34

Consolidated Results Review－Q1 FY03/2023
Net sales:¥184.0 billion+13.2% YoY

Net sales grew backed by rising selling prices of raw
materials and a weaker yen
Operating profit:¥5.3 billion-4.7% YoY

Operating profit fell due to higher logistics and other SG&A
expenses
Ordinary profit:¥5.3 billion-16.4% YoY

Ordinary profit fell as a result of lower operating profit andhigher non-operating expenses
Profit attributable toowners of parent:¥

4.5 billion-42.8% YoYProfit attributable to owners of parent declined due to decreases
in ordinary profit and gain on sales of investment securities
35

Consolidated Results Review－Q1 FY03/2023(Billions of yen)
YoY change

Forecast
Achievement
announcedrate
May 10, 2022
（A)/(B)(B)

Q1 FY03/2022

Q1 FY03/2023(A)

Amount

%

162.6

184.0

+21.4

+13.2%

730.0

25.2%

Operating profit

5.5

5.3

-0.2

-4.7%

19.5

27.4%

Ordinary profit

6.4

5.3

-1.0

-16.4%

20.5

26.3%

Profit attributable toowners of parent

7.9

4.5

-3.4

-42.8%

20.5

22.2%

Net sales

Exchange rate
(USD/JPY)

109.52129.73 +20.21

120.0036

Equity Capital, Net Interest-Bearing Debt,
Net Debt/Equity Ratio(Billions of yen)

Equity capital

Net interest-bearing debt

Net debt/equity ratio

200

173.8

162.9

174.9

0.80

179.3

145.9

150

(Times)

0.60

100

0.40

0.25
50

0.19
30.3

0.17

0.16
23.4

0.06
9.7

44.4

0.20

29.1

0

0.00
End-FY03/19 End-FY03/20 End-FY03/21 End-FY03/22 End-June/22

Notes: Equity capital = Net assets – stock acquisition rights – non-controlling interests
Net debt/equity ratio = (Interest-bearing debt – cash and deposits) / equity capital37

Reference38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

Europe2. A globally expanding, multi-faceted
trading company

The
Americas
India

China
Japan

SE Asia

Around 60 locations in 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
39

Summary of the Company

3. 4 Business Segments
Operating in 4 segments:Information & Electronics,
Chemicals, Life Industry and Plastics
Life
Industry

6%
Chemicals

12%
Materials for pharmaceuticals
and household products,
agricultural and marine
products

Plastics
46%

FY 03/2022 Sales

Plastic materials,
compounds, various film andsheet products

680.9 billion JPY
Information& Electronics

Resin and rubber materials,
materials and additives forpaints, inks, adhesives
Lumber, laminated timber,housing equipment

36%
LCD components, inkjet andtoner materials, LED materials

40Composition of Products and Materials (FY03/2022)
Information & Electronics

Chemicals

Sales ¥261.5 billion

Sales ¥84.3 billion
Dyes andothersOthersEnvironment andenergySemiconductors
and 5G

Automobile component
materials
Displays

Functional
chemicals

Construction
materials

Digital printing
Coating materials

Life Industry

Plastics

Sales ¥41.4 billion

Sales ¥318.7 billion

Home products

OthersMaterials forautomobiles
Films and sheets

Pharmaceuticals

Food products

Molding materials

OA, electricaland electronic
products

41

Regional Development
Conducting business globally at about 60 locations in 18 countries

IK Group’s sales by region
Southeast Asia
23.7%
Japan
41.2%

FY03/2022
Net sales:¥680.9 billion
Northeast Asia
28.1%

Europe1.9%

Americas5.1%
42Inabata’s Wide Range of Capabilities
Highly specialized people
empowered with cutting-edge information

43

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

Plastics
manufacturer
ProposalCompounding facility
Information
Collaboration

Component
manufacturer
Information

Product
manufacturer
ProposalInquiries on plastics andcoating materials

Information onmaterials

Tradingcompany office
Expanding tradingbusiness by leveraging ourmanufacturing capabilities
Trading company capabilities

44

Inabata’s Strengths [Plastic Compounding Facilities]
China

Plastics Compound
Business Office (Japan)

12,600 MT/Y•••

VietnamShares information
Coordinates facilities andraw materials
Reduces costs bypurchasing in bulk

42,000 MT/Y

ThailandPhilippines

38,400 MT/Y

17,700 MT/Y
Building and dismantling plants in line with customers’
relocation strategies
Providing consistent service quality everywhere

Malaysia
27,600 MT/Y

Indonesia
37,200 MT/Y

190,500 MT/Y: 7 sites in 7 countries (As of March 31, 2022)

Mexico15,000 MT/Y
45

Sales and Operating Profit in the Manufacturing Sector
Manufacturing and processing businesses account for 10–15% of consolidated
sales and operating profit
Positioned as a means of expanding trading functions

Sales(Billions of yen)

(Millions of yen)

80.0

Operating profit

2,500

2,067

65.7
60.0

2,000

55.9

1,576
1,500

40.0
1,000

20.0

500
0

0.0
FY03/2021

FY03/2022

Note: Results for FY03/21 have been converted at the exchange rate for FY03/22.

FY03/2021

FY03/2022

46

Net Sales and Operating Profit(Operating profit: Billions of yen)

(Net sales: Billions of yen)
1,200.0

Net sales

35.0

Operating profit

1,000.0 30.0

1,000.0(Goal)

800.0

25.0

(Forecast)

800.0

561.1

600.0

572.1 577.0 586.6

14.0

469.0 464.4 479.9
410.7

12.6
10.9

400.0

7.9

7.6

621.1 634.7

10.7

680.9 730.0 20.5
20.0 19.5
600.3

20.0

577.5
14.9
15.0

13.2

11.3
10.0

7.7
5.9

5.5
200.0

5.0

0.0

0.0
Around 2030
IK Vision 2030
NC2016

NC2020

NC202347

Overseas Sales and Operating Profit(Net sales: Billions of yen)

(Operating profit: Billions of yen)800

Net sales

Operating profit
18600

Operating profit grew by five times over 17 years

14

12.0

10
400

6.9
6.1
4.9

4.2
3.3
200

3.6

3.7

3.5

2.3

1.6
150.5

170.9

185.0

159.3

3.9

284.3

294.0

5.1

5.8

7.9
7.3

340.6

305.4 312.9

327.7

316.3

400.4

6
308.5

2.0
211.6
186.5

2

186.7

(0.7)

152.2

110.2

0

-2
FY03/05FY03/06FY03/07FY03/08FY03/09FY03/10FY03/11FY03/12FY03/13FY03/14FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22

JPY per 104.2
USD

118.0

119.1

114.1

91.0

92.1

81.4

77.7

79.8

100.1

109.7

120.1

108.3

110.8

110.9

108.7 106.1

NC2020112.4

Around2030(IK Vision 2030)

NC202348

Sales by Segment(Billions of yen)

Information & Electronics

1,200.0

ChemicalsLife Industry

Plastics

Other

1,000.0
1,000.0(Goal)(Forecast)

800.0

800.0

730.0
621.1

634.7
0.1

0.1

600.0
286.9

300.0

680.9
600.3

270.3

0.1

0.2

0.1

577.5
0.1

0.2

344.8
326.8
316.2

248.8

52.0

400.0
38.2
78.6

47.0
83.0

119.0

42.3
76.7

39.0
77.5

36.9
74.1

37.3
66.6

214.9

217.9

218.6

224.5

247.7

273.0

284.0

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

200.0

0.0

NC2020Around 2030
IK Vision 2030

NC202349

Operating Profit by Segment(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

Other

27.50
(Goal)

22.50

20.0
0.12

17.50

14.0
0.13
12.50

0.10

0.10

14.9
13.2

0.13

8.67

8.90

9.00

0.13

6.34

6.23

0.12
5.54

2.50
1.92
0.41
(2.04)

-2.50

20.5

19.5

5.63

5.9
7.50

(Forecast)

1.31
1.42

1.16
1.20

4.81

4.48

2.61

2.30

2.50

1.56
1.32

2.20

2.00

2.60

6.32

6.42

6.20

6.30

FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24
NC2020Around 2030
IK Vision 2030

NC202350

Trends in Cash Flow(billions of yen)
30

Operating CF

Real Operating CF*

Investment CF

20
100
FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20

FY 3/21FY 3/22-10-20(millions of yen)

FY 3/11 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 FY 3/17 FY 3/18 FY 3/19 FY 3/20 FY 3/21 FY 3/22
Operating CF
8,495 -15,534 19,400-764
8,354 11,866
1,840
5,960 12,510 10,690 17,613 -11,448
Change in WC-3,748 -20,357
3,414 -15,244 -11,179
5,821 -9,367 -2,249
7,071
70 -1,154 -35,050
Real Operating CF*
12,243
4,823 15,986 14,480 19,533
6,045 11,207
8,209
5,439 10,620 18,767 23,602
Investment CF-1,436 -1,629
277 -5,467 -3,044
-161
4,504
5,086
743
-525
-423
5,446
* Cash flows associated with operating activities – Cash flows associated with change in working capital
Working capital = Trade receivables + Inventory – Trade payables

51

Corporate Governance (1)Two outside directors who are not Audit and Supervisory Committee members
We aim to enhance supervisory functions and increase corporate value by taking advantage ofthe outside directors’ extensive experience and wide-ranging insight into company business.

Kiyoshi Sato*

Takako Hagiwara*

Lead outside director/Chair of Nominating
and Remuneration Committee

Nominating and Remuneration Committee
memberBackground

Background

Former President and CEO - Tokyo Electron
Ltd.
Current Director (Outside) – Shibaura
Machine Co., Ltd. and Mazda Motor Corp.

Reasons for appointment
Mr. Sato has extensive experience in global
business operations as top management of aleading producer ofmanufacturing equipment for
semiconductors and flat panel displays.

Current Representative Director, DDD Corp.
Current Outside Director, Twinbird Corp.
Current Outside Director, NEC Capital
Solutions Ltd.

Reasons for appointment
Ms. Hagiwara has extensive experience as amember of top management in charge of HR
at a major electronics manufacturer that
operates multiples businesses globally.

(*) Mr. Kiyoshi Satoand Ms. Takako Hagiwara are registered as independent outside officers with the TSE.

52

Corporate Governance (2)Four outside directors who are Audit and Supervisory Committee members

Kenji Hamashima*
Head audit and supervisorycommittee / Nominating andRemuneration Committee
memberBackground
Former President and Chief
Executive Officer – Ushio Inc.

Satoshi Tamai*

Minoru Sanari*

Tomokazu Fujisawa*

Background

Background

Current Representative,
Satoshi Tamai certified Public
Accountant Office
Current Outside Auditor, Toho
Lamac Co., Ltd.
Current Outside Auditor, PC
Dept Corp.

Former Executive Officer,
Former Director, Audit &Tokyo Gas Co., Ltd.
Supervisory Committee Member,
Current Senior Adviser, Tokyo Astellas Parma Inc.
Gas Co., Ltd.

Background

Reasons for appointment Reasons for appointment

As an attorney at Japan’slargest city gas company, Mr.
Reasons for appointment
Reasons for appointment Sanari has specialized
Mr. Hamashima has extensive
knowledge and extensive
Mr. Tamai has extensive
experience in global businessexperience as a representative experience in corporate legal
operations as top management of partner at a major Japanese
affairs and governance.
a manufacturer handling applied auditing corporation , and as
optics products and industrial
an outside auditor at multiple
machinery.
companies.

Mr. Fujisawa has experience inauditing operations and atoverseas subsidiaries for a global
pharmaceutical company, as well
as extensive experience as adirector and member of the Audit& Supervisory Committee.

(*) Mr. Kenji Hamashima, Mr. Satoshi Tamai, Mr. Minoru Sanari and Mr. Tomokazu Fujisawa are registered as independent outside
officers with the TSE.

53

Corporate Governance ③
2. Evaluating the board of directors
Objective - To enhance corporate value by increasing the effectivenessand transparency of the board of directors■ FY03/19, FY03/20
Performed a self-evaluation using a survey format■FY03/21
Conducted third-party evaluation of all directors and Audit & Supervisory Board
members using surveys and individual interviews■ FY03/22
Performed a self-evaluation using a survey format⇒ In April 2022, disclosed summary of evaluation and measures going forward

54

Corporate Governance ④
2. Evaluating the board of directors
FY03/2022（self-evaluation）
Summary of evaluation

・ The composition and operating status of the Board received high marks overall.
・ Open and lively discussions were confirmed.
・ Outside officers (directors and auditors) made contributions.
・ There was sufficient reporting on the status of dialogues with investors and shareholders

Improvements based on issues raised in third-party evaluations in FY2020

・Conducted free discussions outside of the Board of Directors, to promote debate on medium to longterm issues such as diversity and sustainability
・Established a new company-wide Business Planning Office to strengthen company-wide, crosssectional functions
・ As part of an ongoing review of the composition of the Board of Directors, decided on a transition to
a company with Audit and Supervisory Committee

Issues to be considered in the future

・ Further discussions on succession planning and sustainability
・ Provision of sufficient information by the Nominating and Remuneration Committee to the Board of
Directors
・ Improvement in communication among outside directors which had been inadequate due to theimpact from the COVID-19 pandemic
・ Further enrich communicating information to capital market
55

Trends in Share Price
Inabata’s Share Price for the past 10 years
JPY/share

56

Trends in Share Price
Inabata’s share price performance vs. TOPIX for the past 10 years(09/2013=100)

INABATA57

 IR queries should be directed to:
IR Department
Financial Management Office

Inabata & Co., Ltd.
E-mail inabata-ir@inabata.com (Contact: Ms. Ryoko Mitsui) A Cautionary Note Regarding Future Estimates
The data and future predictions contained in this document are based on information available and judgments
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 this document 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 showingchanges between sets of data.