IR Briefing on
Fiscal Year ending March 2015

November 2015
Inabata & Co., Ltd.
1

1

Contents
P.3-

Summary of the Company

P.9-

Summary of Financial Results - FY3/2015

P.15- Returning Profits to Shareholders
P.18- Corporate Governance
P.19- Medium-Term Management Plan
“New Challenge 2016” - Year 1 Progress
P.39- Reference

Copyright © INABATA＆CO., LTD 20152

Summary of the Company
About Inabata:
1. Founded in 1890
Founded in Kyoto in 1890, initially as the “Inabata
Dye Shop”
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 17 countries
Business functions include market development; manufacturing &processing; logistics; finance etc.
Planning and proposals based on expertise and know-how of products
and markets
Copyright © INABATA＆CO., LTD 20153

Summary of the Company
3. 5 Business Segments
Operating in 5 segments: IT & Electronics; Chemicals; Life
Industry; Plastics; and Housing & Eco Materials
Housing& Eco

Life
Materials
Industry

4%

6%
Chemicals

9%

FY 3/15
Sales Results
572.1 billion
JPY

Plastics
44%

IT &Electronics

37%

Copyright © INABATA＆CO., LTD 20154

Inabata’s Business Spheres
Operating in 5 business segments at about 60 locations, throughout Japan and
18 countries overseas

Inabata GroupJapan

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

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

5 Areas of Business:

Southeast
Asia

IT & Electronics
ChemicalsLife Industry
Plastics

Northeast
Asia

Housing & Eco Materials

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

EuropeThe
Americas(NB) No. of overseas countries and operation bases valid as of 31 October 2015
(NB) No. of operation bases includes bona fide Inabata & Co., Ltd. affiliates

10 bases of operationin 3 countries,
including USA &Mexico5
Copyright © INABATA＆CO., LTD 2015

Overseas Sales (including exports from Japan)
The Americas
16.5 billion
4.8%

Europe10.6 billion
3.1%
(JPY)

Northeast Asia
193.0 billion
55.7%

FY 3/15
Overseas Sales
346.4 billion

Southeast Asia
126.0 billion
36.4%(60.6% of consolidated net sales)

Copyright © INABATA＆CO., LTD 2015

Southeast Asia
Northeast Asia
The Americas
Europe6

Consolidated Financial Results: Trends Over the Past 15 Years(Op. Income: billion JPY)

(Sales: billion JPY)

700.0

Sales

Op.IncomeNet Income for the Period
10.9

500.0

500.0

466.0
423.3

400.0

469.0 464.4479.9

442.7

100.0

7.9 7.6 7.7

410.7

369.7

7.2

331.7

200.0

10.7

610.0
561.1 572.1
10.0

600.0

300.0

11.5 12.0

301.3
270.2

288.9

5.5
3.5
2.1

8.6 8.6 8.58.0

6.6

6.0

6.2
4.0

1.7

2.0

0.0

0.0
3/01 3/02 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
(Forecast)
Copyright © INABATA＆CO., LTD 20157

Overseas Sales & Operating Income: Trends Over the Past 15 Years
Overseas Sales(Sales: billion JPY)

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

300.0

284.3

294.0 7.5

6.1
211.6
200.0
170.9

159.3 152.2

150.5

5.0

186.5 186.7

185.0

4.9

4.2

3.9
3.7

110.2
100.0

74.6 67.7 72.4

2.5

84.1

2.0
1.6
0.0

0.0
3/01 3/02 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
JPY:USD
Exchange
Rates

114.7

131.9

119.9

107.1

104.2

118.0

119.1

(NB) The figures do not include the exports from Japan.

114.1

91.0

92.1

81.49 77.74

79.81

100.17 109.76

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Copyright © INABATA＆CO., LTD 2015

FY3/2015 Consolidated Results Review< Record High Sales and Current Profit>

Sales：

572.1 billion JPY +1.9％ YoY

Increase due largely to the impact of the weak yen

Op. Income：10.7 billion JPY -1.5％ YoY

Fall caused by slump in Life Industry operations etc.

Current Profit： 13.2 billion JPY +6.1％ YoY
Increase due to rise in dividend income

Net Income：8.6 billion JPY -0.4％ YoY

Despite the increase in current profit, net income declined as theresult of a fall in the gains made on the sale of shares in affiliates
Copyright © INABATA＆CO., LTD 2015

9

FY3/2015 Consolidated Results Review(billion JPY)YoY Change

Forecast for thefull fiscal year,
Achievement %as announced on(A)/(B)
November 6, 2014
(B)

FY 3/14

FY 3/15
(A)

Sales

561.1

572.1 +10.9 +1.9%

570.0

100.4%

Op. Income

10.9

10.7

-0.1

-1.5%

10.5

102.6%

Current Profit

12.4

13.2

+0.7 +6.1%

12.5

105.7%Net Income

8.6

8.6

8.2

105.3%

Exchange Rate:
USD/JPY

Amount-0100.17 109.76 +9.59

％

-0.4%

103.01(NB) Revisions to the forecast for the full fiscal year, as announced on November 6, 2014 (Op. Income 11.0 billion JPY→10.5 billion JPY; Net Income 7.5billion JPY→8.2 billion JPY)

Copyright © INABATA＆CO., LTD 201510

Sales by Business Segment
Plastics: strong performance overall, both in Japan and overseas
IT & Electronics: fall in key LCD-related business sales
Life Industry: tough conditions for life science-related businessSales

IT & Electronics
ChemicalsLife Industry
Plastics
Housing & Eco Mat.
Other
Total

(billion JPY)

FY 3/14

FY 3/15YoY

FY Total

FY Total% Change

210.7
52.3
37.6
232.8
26.5
1.0
561.1

209.3 -0.6%
52.8 +0.9%
34.6 -7.9%
250.4 +7.5%
24.2 -8.5%
0.5 -46.2%
572.1 +1.9%

Housing
& Eco
Mat.
4.2%

Other
0.1%
IT &
Electronics

36.6%

Plastics
43.8%

Copyright © INABATA＆CO., LTD 2015

Chemicals

9.2%
Life
Industry
6.1%
11

Op. Income by Business Segment
Plastics: strong sales to the vehicle sector & OA sector
IT & Electronics: decline in key LCD-related businessLife Industry: fall in life science-related business

Op. Income

IT & Electronics
ChemicalsLife Industry
Plastics
Housing & Eco Mat
Other
Total

(million JPY)

FY 3/14FY Total

FY 3/15
FY Total

YoY% Change

4,863
862
1,745
2,828
343
292
10,936

4,489
1,072
1,037
3,730
285
158
10,774-7.7%+24.3%-40.6%+31.9%-16.8%-45.9%-1.5%

Housing& Eco Other
Mat.
1.5%
2.7%
IT &
Plastics
34.6%

Electronics

41.7%
Chemicals

9.9%
Life
Industry
9.6%

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12

B/S Summary
・Total assets increases (17.4 billion JPY) as a result of the depreciating yen
・Shareholder equity increases as a result of a rise in retained earnings andthe weak yen(billion JPY)
（Assets）
Cash & deposits
Notes receivable &Accounts receivable

Inventory
Other current assets
Tangible fixed assets
Intangible fixed assets
Investments in securities
Other fixed assets
Total assets

Current Ratio

End 3/14

23.2
144.0
41.7
5.6
11.6
3.6
69.7
5.2
305.0

End 3/15 Change

23.5
155.9
48.1
7.2
12.6
3.6
68.2
7.3
326.8

138.4% 151.9%（Debt/net assets）

payable and+0.3 Notes
accounts payable+11.9 Short-term loans payable+6.3 Other current liabilities+1.6 Long-term loans payable+0.9 Other fixed liabilities-0 Shareholders’ equity-1.5 AOCI+2.1 Other net assets
Total liabilities and+21.8 net assets

Net Worth Equity Ratio

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End 3/14 End 3/15 Change

84.0
63.1
7.9
13.4
20.6
80.4
34.5
0.8
305

91.1
54.4
9.0
24.3
19.2
85.4
42.2
0.8
326.8

+7.1
-8.6
+1.1
+10.9
-1.3
+5.0
+7.6
-0
+21.8

37.7% 39.1%

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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)

140.0

127.6
0.82

120.0

1.00

115.0
0.80

100.0
80.0

97.8
0.62
76.9

71.3

0.60

0.50

0.46

62.8
60.0

53.3

48.8

43.9

0.43
55.2

0.40

40.0
0.20
20.0
0.0

0.00
End 3/11

End 3/12

End 3/13

End 3/14

End 3/15(NB)
Equity Capital = Net Assets – Stock Acquisition Rights – Minority Interests;
Net D/E Ratio = (Int. Bearing Debt – Cash & Deposits) / Equity Capital
Copyright © INABATA＆CO., LTD 201514

Returning Profits to Shareholders (1)Shift in policy for returning profits to shareholders - effective
as of FY 3/2015
Dividend Payout Ratio of 20-30% (target)→ Total Return Ratio of 30-35% (target)
We intend to make profit returns clearer by including the amount oftreasury shares acquisition in the reference indicator
Total Return Ratio (%) = (amount of dividends + amount of treasury shares acquired) / consolidated net income x 100

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EPS Trends

(JPY)

160

137.01 137.20 135.57
111.34120

97.45 104.29

80
44.98
40
0

33.22

27.08
(355)

(439)

(604)

(NB) The figures in brackets at the bottom of the bar chart show the amount of treasury shares acquired during the period
16(JPY million).
Copyright © INABATA＆CO., LTD 2015

Returning Profits to Shareholders (2)Shareholder Returns for FY 3/2015
Total Return Ratio: 31.1%, Dividend Payout Ratio: 24.1%
Dividend per Share: Interim 15 JPY; Final 18 JPY; Annual 33 JPY
Treasury Shares Acquired: 604 million JPY (600,000 shares acquired in August 2014)
Trends in Annual DPS & Shareholder Return Indicators
(JPY)

35
30
25
20
15
10
5
0

Dividend

Dividend Payout Ratio

36.9%

21
23.4%

22.2%

10

30

26

30.1%

10

Total Return Ratio

10

23.4%

27.2%
21.5%

22.1%

50.0%
40.0%

23
28.7%

33

33
31.1%

30-35%
Target

30.0%

24.3%

20.0%

22.0%
21.9%

24.1%

10.0%
FY 3/08(Result)

FY 3/09(Result)

FY 3/10(Result)

FY 3/11(Result)

(355)

(439)

FY 3/12(Result)

FY 3/13(Result)(604)
FY 3/14(Result)

0.0%

FY 3/15(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 3/16(Forecast)
17

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Corporate Governance・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.
As of June 24, 2015

Outside Directors
・Mitsunori Takahagi*
Former President & Current Advisor - JX Holdings, Inc.

・Yoshimasa Takao
Executive Deputy Chairman – Sumitomo Chemical Co., Ltd.

・Katsumi Nakamura*
Former Executive Vice President – Renault (France); Chairman of theBoard – Calsonic Kansei Corporation (current position)(*) Mr. Mitsunori Takahagi and Mr. Katsumi Nakamura are registered as independent, outside officers with the TSE. 18
Copyright © INABATA＆CO., LTD 2015

3 Year Medium-Term Management Plan
“New Challenge 2016”
Year 1 Progress

19Medium-Term Management Plan “New Challenge 2016” –Quantitative Targets

Medium-Term Management Plan Targets (FY 3/2017)

Sales: 620 billion JPY
Op. Income: 12.5 billion JPY
Current Profit : 13.5 billion JPY
Net Income: 10 billion JPY
ROE: 8.2％Net D/E Ratio : 0.45 X or less(※)
Net Worth Equity Ratio : 38.0％
Assumed Exchange Rate: 1USD=100 JPY(※) Net D/E Ratio = (Int. Bearing Debt – Cash & Deposits) / Equity Capital
Copyright © INABATA＆CO., LTD 201520

[Quantitative]“New Challenge 2016” – Year 1 Progress Status
 Sales, Current Profit and Net Income have exceeded Year 1 targets thanks to the weak yen androbust business operations in Japan Meanwhile, tough business conditions in Europe and America have led to underperformance interms of Operating Income
 Business indicators such as ROE and Net D/E Ratio etc. performed well

FY 3/2015（billion JPY）

FY3/15 Results(A)

Full Year
Forecast （ B)

Achievement %(A/B）

Year 1 Target
under MediumTerm Plan
(C)

Achievement% (A/C）

Sales

572.1

570.0

100.4%

570.0

100.4%

Op. Income

10.7

10.5

102.6%

11.0

97.9%

Current Profit

13.2

12.5

105.7%

12.5

105.7%Net Income

8.6

8.2

105.3%

7.5

115.1%

ROE

7.1%

-

-

6.4%

Net D/E Ratio

0.43

-

-

0.48

Ne t Worth Equity Ratio

39.1%

-

-

36.0%

-

Exchange Rate (vs. USD)

109.76103.01 JPY-

100.00 JPY-(NB) Full Year Forecast shows the revised figures published on November 6, 2014.

21
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“New Challenge 2016” Quantitative Targets(Profit: billion JPY)
(Sales: billion JPY)

15.0

12.4

13.2

13.5

12.8

12.5
10.0

8.8

9.6

10.9

11.5

10.7

10.0

7.7
7.6
6.2
5.0

6.6

464.4

479.9

FY 3/12FY 3/13

8.6

8.6

561.1

572.1

8.5

Sales
Op Income

610.0(forecast) 620.0
590.0

Current Profit
Net Income(Medium-Term
Plan Target)

0.0
JPY/USD 77.74

79.81

IK2013

FY 3/14

FY 3/15FY 3/16

FY 3/17100.17109.76115.00100.00New Challenge2016(NB) Targets under the Medium-Term Management Plan were established in May 2014. The sales targets for FY 3/16 under the Plan were revised from22
the original 590 billion JPY to 610 billion JPY in an announcement made on May 8, 2015.
Copyright©
INABATA＆CO.,LTD 2015
Net income for FY 3/14 is 8.6 billion JPY; a figure which includes 1.1 billion JPY from gains made on the sale of affiliates.

“New Challenge 2016” – The 6 Key Initiatives
1. Further expansion and build-up of overseas operations• Further expansion and build-up of core Asian operations• Increasing involvement in emerging countries outside Asia
• Expansion in trade with non-Japanese companies

2. Focus on markets with growth potential and sectors thathave yet to be developed• Focus on the automotive sector; the environment & energy sector; andthe life science sector• Steady diversification of income by expanding into new merchandiseand making new business partners
Copyright © INABATA＆CO., LTD 201523

“New Challenge 2016” – The 6 Key Initiatives
3. Development and expansion of global management
infrastructure••

Development of risk management and business management techniques to support global
management
Promotion of global standardization in information systems and business processes

4. Investment aimed at future growth• 10 billion JPY earmarked for investment over the next 3 years

5. Strengthen financial position and seek further capital andasset efficiencies

6. On-going development of international-minded humanresources
Copyright © INABATA＆CO., LTD 201524

[Key Initiatives]

1. Further expansion and build-up of overseas operations (1)Enhancing the strengths of the plastics business
Further increases in plastics-related sales, based on our core strength in theplastic compounds manufacturing business
Aim to construct a system that allows us to offer plastic compounds around the world, in
response to customer trends towards globalization and local procurement
Use our plastic compounds business to differentiate ourselves from our competitors and expand
our plastic trading business
Flow of goods

Flow of goods

Global Users

Inabata Group

Resin suppliers(Automotive sector,
OA etc.)Trading Company Offices
Manufacturing Plants

Information

Information(Plastic Compounds)
Copyright © INABATA＆CO., LTD 201525

[Key Initiative 1. Further expansion and build-up of overseas operations (2)]• Further expansion and build-up of core Asian operations
Plastic compounds manufacturing plant in the Philippines(to meet OA demand)
Starts commercial production in July 2014
Starts mass production in 2015(compounds used for 2015 model printers)
March 2015: production figures surpass 100 tons for the month → expected to reach 600 tons
per month by the end of FY3/2016

Company Name:
Production Capacity:
Location:

IK PLASTIC COMPOUND PHILS. INC.
10,800 tons / year
Laguna Province, the Philippines

Aiming to expand the plastics business in cooperation with trading company offices
Copyright © INABATA＆CO., LTD 201526

[Key Initiative 1. Further expansion and build-up of overseas operations (3)]• Increasing involvement in emerging countries outside Asia
First Japanese plastics compound manufacturing plant in Mexico (to meetdemand from automotive manufacturers)
November 2013: start of operations
September 2014: start of mass production
Establishing business with automakers takes time, from manufacturing prototypes to mass
production . → Prototype projects are steadily increasing .

FY 3/2015:
FY 3/2016:
sold approx. 350 tons → production of 5,000 tons expectedCompany Name
Production Capacity
Location：IK Plastic Compound Mexico, S.A. de C.V.
：10,200 tons / year
：Silao, Guanajuato Province, Central Mexico

Aiming to expand the plastics business in cooperation with trading company offices
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Annual Production Capacity of Plastics Compound (Worldwide)
China

Plastics Compound
Business Office(2 sites)
52,000 MT/Y

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

Vietnam
30,000 MT/Y

Philippines

Thailand

10,800 MT/Y

38,400 MT/Y

Malaysia
24,000 MT/Y
Indonesia
37,200 MT/Y
202,600 MT/Y: 8 sites in 7 countries (as of April 1, 2015)
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Mexico10,200 MT/Y28

[Key Initiative 1. Further expansion and build-up of overseas operations (4)]• Further expansion and build-up of core Asian operations

Initiatives for China
FY 3/2015: sales results 106.1 billion JPY (planned target: 114
billion JPY) IT & Electronics see a slowdown in LCD-related sales - predominantly polarizing film transactions
 Plastics see growth in the sales of compounds aimed at demand from Western automotive
manufacturers, as well as demand from environmental and medical applications
 Chemicals see growth in chemical raw materials & equipment business

Focus on expanding LCD-related sales – including sales to
non-Japanese companies
Sales Results and Medium-Term Management Plan Targets for China (simple addition basis)(billion JPY)

New Challenge2016

150.0
China

100.0
50.0

105.6

106.1

126.0

134.0

FY 3/14(Result)

FY 3/15（Result）

FY 3/16（Target）

FY 3/17（Target）

0.0(NB) Target values are those set under the Management Plan in May 2014.

29
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[Key Initiative 1. Further expansion and build-up of overseas operations (5)]• Further expansion and build-up of core Asian operations

Initiatives for Thailand & Indonesia
FY 3/2015: Thailand sales results 46.1 billion JPY (planned target 45 billion JPY)
Indonesia sales results 37.9 billion JPY (planned target 37 billion JPY)
 Thailand has suffered from the impact of demonstrations and riots, as well as a slump in
automotive production, but electrics and electronics have shown robust trends Indonesia saw growth in the sale of plastics to meet domestic demand in theautomotive sector and everyday consumer goods

Predominant focus on the automotive sector
Sales Results and Medium-Term Management Plan Targets for Thailand & Indonesia (simple addition basis)(billion JPY)

150.0
1500

New Challenge2016

Indonesia
Thailand

1000
100.0
500
50.0
0

33.8

37.9

38.0

39.0

43.8

46.1

47.0

48.0

FY 3/14(Results)

FY 3/15（Results）

FY 3/16（Target）

FY 3/17（Target）(NB) Target values are those set under the Management Plan in May 2014.
(NB) Automotives include 4 wheeled and 2 wheeled vehicles.

30
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[Key Initiative 1. Further expansion and build-up of overseas operations (6)]• Further expansion and build-up of core Asian operations

Initiatives for Vietnam
Establishment of a production site in Vietnam for the manufacture of polyethylene(PE) bags and films
 Second factory for Thailand’s Apple Film Co., Ltd.
 Responding to customer tendencies to “shift from Chinese suppliers”
 Production of high value-added products in Thailand; and labor-intensive, genericproducts in Vietnam

September 2014: Start of commercial production
October 2014: Start of exports
FY 3/2015:
approx. 500 tons produced→

FY 3/2016:
production plans for more than 2,500 tons

： Apple Film Da Nang Co., Ltd.
Company Name
： September 2013
Established： Manufacture & sale of PE bags (garbage bags, standard bags)
Operations
Production Capacity ： Initially 3,000 tons p.a.
： Da Nang City, Vietnam
Location
Copyright © INABATA＆CO., LTD 201531

[Key Initiative 1. Further expansion and build-up of overseas operations (7)]• Further expansion and build-up of core Asian operations

Initiatives for India
FY 3/2015 Sales 6.1 billion JPY (reference value)The economy moves towards stabilization following the inauguration of the Modi government in May 2014
Business has gradually expanded, predominantly in plastics, thanks to stable exchange rates
Our key customer base for plastics has evolved from sporadic business with manufacturers of miscellaneous
goods, to sustained business with manufacturers of vehicles and consumer electronics etc.

Aiming to expand trade, with the focus on business withJapanese customers
Sales in India (reference values)(billion JPY)

8.0

New Delhi

6.0Inabata India
Chennai4.0
2.0Inabata India
Gurgaon

5.1

6.1

FY 3/14(Results)

FY 3/15（Results）

India

0.0

(NB) Sales shown are reference values that add figures for deemed-sales based on commission (calculated from margin rates)32
to figures for inventory sales.
Copyright © INABATA＆CO., LTD 2015

[Key Initiative 2. Focus on markets with growth potential and sectors that have yet to be developed (1)]•Focus on the automotive sector; the environment & energy sector; and thelife science sector

Initiatives in the automotive sector
FY 3/2015: Plastics sales results 21.3 billion JPY (planned target 24 billion JPY)
Chemicals and Others sales results 6.3 billion JPY (planned target 5.8 billion JPY)With plastics raw materials, developing business in Japan utilizing the relationships establishedoverseas with Japanese manufacturers, while cutting into the existing business flows incollaboration with overseas resin manufacturers.
Chemicals have seen robust trends in brake additives, silicone for use in airbags, and raw
materials for paint etc.

Aiming to expand sales of plastics to Mexico etc., for full-scalemass production

 Sales Results and Medium-Term Management Plan Targets for the Automotive Sector(billion JPY)

New Challenge2016
Chemicals and Other

60.0

Plastics

7.3

40.0
20.0

6.5
6.3

5.2
17.7

21.3

FY 3/14(Results)

FY 3/15（Results）

33.0

42.0

0.0
FY 3/16（Target）

FY 3/17（Target）[Main merchandize]
Plastics：
plastics raw materials
Chemicals：
raw materials for use in
airbags
additives & raw materials for use intyres & brakes
raw materials for use inautomotives
Other：
products related to decorative film

Copyright © INABATA＆CO., LTD 201533

[Key Initiative 2. Focus on markets with growth potential and sectors that have yet to be developed (2)]•Focus on the automotive sector; the environment & energy sector; and thelife science sector

Initiatives in the environment & energy sector
FY 3/2015: IT & Electronics sales results 5 billion JPY (planned target 6.5 billion JPY)
Housing & Eco Mat. and Others sales results 2.3 billion JPY (planned target 2.7
billion JPY)

Slump in solar cells due to a fall in AR (anti-reflective) glass business and the discontinuation ofcell supplies to Japanese manufacturer
Sluggish growth in sales of materials for lithium batteries
Robust sales of particle board made from scrap wood
Focus on the sale etc., of solar cell parts for use in car ports; materials and equipment
for use in lithium batteries; and wood chips for use in wood biomass power generators(billion JPY)

20.0

 Sales Results and Medium-Term Management Plan Targets
for the Environment & Energy Sector

New Challenge2016

Housing & Eco Mat.
and Other
IT & Electronics

15.0
10.0

2.3

5.0

8.4
FY 3/14(Results)

0.0

3.2

4.3

2.3
5.0

7.5

7.9

FY 3/15（Results）

FY 3/16（Target）

FY 3/17（Target）[Main Merchandize]
IT & Electronics: solar cells
lithium-ion batteries
LED chips (contract
inspections)
Housing & Eco Mat: wood chips
particle board
Other: recycled polystyrene(NB) Due to a change in the form of LED chip (contract inspection) business, sales results and target values have been revised.

34
Copyright © INABATA＆CO., LTD 2015

[Key Initiative 2. Focus on markets with growth potential and sectors that have yet to be developed (3)]•Focus on the automotive sector; the environment & energy sector; and thelife science sector

Initiatives in the Life Science Sector
FY 3/2015: Life Industry sales results 6.9 billion JPY (planned target 8.6 billion JPY)
Plastics sales results 2.1 billion JPY (planned target 2.2 billion JPY)


A project involving raw materials for use in new pharmaceuticals was cancelled, with the result that targets were not met
Raw materials for use in generic products saw robust trends in Japan, but a slump in the French subsidiary
Supplying plastic for use in medical devices globally to leading manufacturers of medical equipment

Focus on expansion of sales for generic products &participation in the cutting-edge medical sector
 Sales Results and Medium-Term Management Plan Targets for the Life Science Sector(billion JPY)

New Challenge2016

15.0
10.0
5.0

2.3
1.8
7.9

Plastics

2.5

2.1
6.9

9.8

11.3

0.0
FY 3/14(Results)

FY 3/15（Results）

FY 3/16（Target）

FY 3/17（Target）

Life Industry[Main Merchandize]Life Industry:Base drugs & raw materials for use in newpharmaceuticals .
Base drugs & raw materials for use in generic products
Plastics:
Plastics for use in medical equipment(NB) Life Industry (overseas) and Plastics have been further revised to figures for results and targets.

35
Copyright © INABATA＆CO., LTD 2015

[Key Initiative]

4. Investment aimed at future growth
10 billion JPY earmarked for investment over the
next 3 years

3.8 billion JPY invested in FY 3/2015[Of which]
Plastics:
Chemicals:
IT & Electronics:

1.9 billion JPY
0.5 billion JPY
0.2 billion JPY etc.

[Key investment results]
Land for use by Plastics overseas operations (0.73 billion JPY)
Capital & capital investment for Compound business (0.47 billion JPY)
Capital & capital investment for Plastic Film business (0.51 billion JPY)

Copyright © INABATA＆CO., LTD 201536

Sales Forecasts by Business Segment(billion JPY)

700.0
600.0
500.0

479.9
Other
22.2 0.4

561.1
Other
26.5 1572.1
24.2 Other
0.5

610.0 Other
25.0 1
Other

232.8

250.4

275.0

37.6
52.3

34.6
52.8

43.0
54.0

400.0

186.0
300.0
200.0
100.0

35.8
42.7
192.4

210.7

209.3

212.0

FY 3/13

FY 3/14

FY 3/15FY 3/16(Result)(Result)(Result)(Forecast)

Housing &Eco Mat.
Plastics
Life Industry
Chemicals
IT &Electronics

0.0

Copyright © INABATA＆CO., LTD 201537

Op. Income Forecasts by Business Segment(billion JPY)

12

10.9 Other
0.34

10
8
6

2.82

7.7

2

0.3

0.2

0.28 0.15

3.73

3.9

Other

Other

0.15 0.22
2.29

1.74
0.86

4

0.29

10.7 Other

11.5 Other

1.03
1.07

1.5

Housing &Eco Mat.
Plastics

1.2Life Industry

1.49
0.33

Chemicals

4.86

4.48

4.4

FY 3/13

FY 3/14

FY 3/15FY 3/16(Result)(Result)(Result)(Forecast)

3.24

IT &
Electronics

0

Copyright © INABATA＆CO., LTD 201538

Reference39 Business Environment
The Global Economy
Uncertainties growing due to multiple factors led by slowdown in
China.
Long-term USD exchange rate(yen)

Source: Bank of Japan

Copyright © INABATA＆CO., LTD 201540

 Trends in Share Price
Inabata’s Share Price for the past 10 years

August 19, 2015 sees record high of 1,467 JPY per share
JPY/share

Copyright © INABATA＆CO., LTD 201541

 Trends in Share Price
Inabata’s share price performance vs. TOPIX for the past 10 years
Worldwide fall in share prices

Subprime loan crisis(08/2005=100)

Continuing strong yen

The Great East Japan Earthquake (March)

LDP wins majority in the election

INABATA

Bankruptcy of Lehman Brothers Holdings Inc. (Sep.)

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

Copyright © INABATA＆CO., LTD 201542

Consolidated Results Review – 2Q FY3/2016

292 billion JPY +5.4％ YoY

Sales：

Increase due largely to the impact of the weak yen

5.9 billion JPY +15.8％ YoY

Op. Income：

Increase due to bullish conditions in Plastics and theimpact of the weak yen

Current Profit：

6.7 billion JPY △2.4％ YoY

Decrease due to fall in dividend income and occurrence of
foreign exchange losses
Net Income
Attributable to Parent Company Shareholders：

4.7 billion JPY △5.9％ YoY

Decrease due to fall in current profit and decline in the gainon sales of investment securities(NB) As of FY3/2016, “Net Income” is changing and will be described as “Net Income Attributable to Parent Company Shareholders.”

43
Copyright © INABATA＆CO., LTD 2015

Consolidated Results Review – 2Q FY3/2016(billion JPY)

FY 3/152Q

FY 3/16
2Q(A)

YoY Change
Amount％Full Year
Forecast announced on
May 8, 2015

Achievement(A)/(B)%

(B)

Sales

277.7 292.7 +15.0 +5.4%

610.0

48.0%

Op. Income

5.1

5.9

+0.8 +15.8%

11.5

51.6%

Current Profit

6.9

6.7 △0.1 △2.4%

12.8

52.6%

5.0

4.7 △0.3 △5.9%

8.5

56.3%

Net Income
Attributable to Parent
Company Shareholders

Exchange Rate:
USD/JPY

103.01 121.87 +18.86

115.00(NB) As of FY3/2016, “Net Income” is changing and will be described as “Net Income Attributable to Parent Company Shareholders.”

44
Copyright © INABATA＆CO., LTD 2015

Sales Trends
1Q-2Q

700.0

Full Year

561.1

600.0
500.0

Full Year Forecast(announced on May
8, 2015)

Sales(billion JPY)

464.4

610.0

572.1

479.9

% Achieved

48.0％

400.0
300.0

232.0

235.3

FY 3/12FY 3/13

277.3

277.7

292.7

FY 3/14

FY 3/15FY 3/16

200.0
100.0
0.0
(Reference)
Exchange
Rate:
USD/JPY

1Q-2Q
Full Year

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

80.73
77.74

79.31
79.81

98.86
100.17103.01109.76121.87(*Note)115.00(*Note: estimated at time of publication)(NB) From FY 3/14 the method used to convert income and expenses of overseas subsidiaries changed from the year-end rate to the average rate for the period.
Figure for FY 3/13 have been retrospectively adjusted to reflect this change; however figures for FY 3/12 and 2Q of FY 3/13 have not been adjusted (figures in brackets show
figures prior to retrospective adjustment).
Copyright © INABATA＆CO., LTD 201545

Trends in Operating Income
Op. Income(million JPY)

1Q-2Q

14,000

Full Year Forecast (asannounced on May 8, 2015)

Full Year

11,50012,00010,936

10,77410,0008,000% Achieved

7,632

7,765
5,712

6,000
4,000

51.6％

3,642

5,124

5,932

3,702

2,000
0
FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16(NB) From FY 3/14 the method used to convert income and expenses of overseas subsidiaries changed from the year-end rate to the average rate for the period.
Figure for FY 3/13 have been retrospectively adjusted to reflect this change; however figures for FY 3/12 and 2Q of FY 3/13 have not been adjusted (figures in brackets show
figures prior to retrospective adjustment).
Copyright © INABATA＆CO., LTD 2015

46

Trends in Current Profit
Current Profit(million JPY)

1Q-2Q

14,000

Full Year

12,454

13,217Full Year Forecast (asannounced on May 8, 2015)

12,80012,00010,000

8,834

52.6％

8,000
6,000

% Achieved

9,603

4,172

4,387

FY 3/12FY 3/13

6,573

6,907

6,739

FY 3/14

FY 3/15FY 3/16

4,000
2,000
0

(NB) From FY 3/14 the method used to convert income and expenses of overseas subsidiaries changed from the year-end rate to the average rate for the period.
Figure for FY 3/13 have been retrospectively adjusted to reflect this change; however figures for FY 3/12 and 2Q of FY 3/13 have not been adjusted (figures in brackets show
figures prior to retrospective adjustment).
Copyright © INABATA＆CO., LTD 201547

Trends in Net Income
Net Income(million JPY)

Full year forecast (asannounced on May 8,
2015)

Attributable to Parent Company Shareholders

10,000

1Q-2Q

Full Year

8,669

8,630

8,500

8,000

6,297

% Achieved

6,630

56.3％

6,000

4,562
4,000

2,698

5,086

4,785

FY 3/15FY 3/16

3,162

2,000
0
FY 3/12FY 3/13

FY 3/14(Note) Figures for FY 3/14 include the sum of 1.1billion JPY from gains made on thedisposal of shares in affiliates.

(NB) From FY 3/14 the method used to convert income and expenses of overseas subsidiaries changed from the year-end rate to the average rate for the period.
Figure for FY 3/13 have been retrospectively adjusted to reflect this change; however figures for FY 3/12 and 2Q of FY 3/13 have not been adjusted (figures in brackets show
figures prior to retrospective adjustment).
Copyright © INABATA＆CO., LTD 201548

Principal Consolidated Subsidiaries
No. of Consolidated Subsidiaries
Japan

Oversea

Total

Consolidated Subsidiaries

8

34

42

(of which manufacturers)

（4）

（15）

（19）

Unconsolidated subsidiaries in which
equity is held

4

2

6

(of which manufacturers)

（2）

（2）

（4）

12

36

48

（6）

（17）

（23）

Total
(of which manufacturers)

Copyright © INABATA＆CO., LTD 201549

Manufacturing Process of Plastic Compound
Plastic Compound Production
Additives, such as flame-retardant,
are blended into the plastics

Raw plastic is
suppliedRaw plastic
material

Compound Production
Base

Blender

Plastic compounds are used forparts in the home electronics, OA(office automation), automobile
and motorcycle industries

BucketWarehouse

Packaging Warehouse

Extruders

Water BathPelletizer

Molding Plant etc. Assembly Plant

SorterResin compound

Plastic is extruded after being melted and mixed

Plastic is cut into
pellets, inspected
and packaged

After the plastic is molded, it is sent
to assembly plants of customer
manufacturers

Copyright © INABATA＆CO., LTD 201550

 IR queries should be directed to:Inabata & Co., Ltd. Financial Management Office, IR Dept.
TEL: 81-3-3639-6579 (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.
Copyright © INABATA＆CO., LTD 201551