Medium-term Management
CCC-II
Plan 2026
SAKATA INX CORPORATIONTSE Prime｜ Securities code: 4633

The forward-looking statements in this document are based on information available at the time the document was prepared and on certain assumptions deemed reasonable, which
entail uncertainties. Please note that the information in this document is subject to change.

Review of previous Medium-term Management Plan CCC-I: Business results

FY2023 plans
Net sales

195.0 B

11.3 B

13.0 B

13.6 BROE

10% or higher

8.1%

Exchangerate

JPY

105=USD1

Operating income (right axis)

Ordinary income (right axis)

JPY

11.5 B

Ordinary
incomeNet sales (left axis)

228.3 BJPY

Operatingincome▍Comparison of consolidated net sales and profits

FY2023 results

Unit: Billion yen

13.6

11.3

140.56=USD1

JPY

13.0

11.5

8.5
7.4

External factors affecting the plan

215.5
181.4

◼ Lower demand for information media due to rapid
digitalization◼ Emerging geopolitical risks

228.3

195.0

4.9

4.1

◼ Exchange rate effects (yen depreciation)◼ Fluctuations in raw material costs◼ COVID-19 pandemic◼ Global inflation (rising labor costs and prices)00

FY2021Results

FY2022
Results

FY2023Results

FY2024
Planned

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Review of previous Medium-term Management Plan CCC-I: Investment plans (including nonconsolidated)▍Breakdown of investments by region▍Results

EuropeCapital investment

0.6

Unit: Billion yen

Americas

6.2

Three-year total

Japan

USA

Osaka Plant renovations

Expansion of Ohio plant andinstallation of additional
equipment

Vietnam

Asia

7.2

JPY

22.0 B

Japan

Construction of new gravure ink
plant

Construction of new plant

Philippines

8.0

Construction of new plant forrelocation

Includes strategic investments budget

At the time of Medium-termManagement Plan 2023 formulation
Capital investment plan

Strategic investments
budgetTotal investment

15.0 B
JPY15.0 B
JPY30.0 B

BrazilJPY

Strategic investments◼ US CVC initiatives*◼ Investments in startups and university-based
business ventures for open innovation◼ Investments to establish new businesses* Budget for investments to accelerate growth

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CCC-I results and continuing issues

Transformational projects

Strategic courses of action

Policies

Results (overview)

Ongoing issues

Growing the Printing inks /Digital and Specialty products
businesses• Laying the foundations for global alliances• Expanding growth businesses (packages and functional businesses)• Enhancing synergies among domestic and overseas facilities(enhancing global operations)• Proposing environmentally-friendly solutions• Improving earnings capabilities through business structural reforms

Enhancing ESG andsustainability initiatives with anemphasis on the environment
and local communities• Formulating various ESG policies, including a basic sustainability
policy• Participating in ESG platforms• Declaring TCFD support• Integrating financial and nonfinancial considerations (quantifying
financial impacts)• Promoting ESG governance at overseas subsidiaries• Enhancing businesses for solutions to social issues

Tackling new business areas• Strategic, visionary targeting based on technological exploration anddatabase development• Achieving a product portfolio with high added value• Startup investment activities• Developing (establishing) commercialization processes• Enhancing cooperation activities (fusing technologies, generatingsynergies)• HR development (corporate culture)

Further enhancing global
consolidated management

Achieving progress on building the infrastructure for global executionof corporate strategy in ESG and other areas

Continuing to build the infrastructure for global management ofprocurement, sales, ESG, safety, and quality

Strengthening stakeholder
relationships

Enhancing communication tools to create shared value and build
dialogue with stakeholders

Increasing corporate value by enhancing external communication andbuilding stronger foundations through more active internal
communication

Adopting various HR programs with an emphasis on initiative, holding
dialogue meetings, and improving workstyles and other aspects of theworking environment

Building evaluation programs and training systems based on humancapital policy

HR development enhancements,organizational culture reforms

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Long-term Strategic Vision: Basic Policy

SAKATA INX VISION 2030

Create and Innovate, Care for the Earth, Color for Life
Strategic courses of action for theLong-term Strategic Vision▍Growing the Printing inks / Digital and Specialty product businesses▍Tackling new business areas▍Enhancing ESG and sustainability initiatives with an emphasis on the environment and local communities

Transformational projects▍Further enhancing global
consolidated management▍Strengthening stakeholder
relationships▍HR development enhancements,organizational culture reforms

Medium-termManagement Plan 2023

Business growth, stronger
earnings capabilities
Medium-termManagement Plan 2026

Moving to achieve theLong-term Strategic Vision
Medium-termManagement Plan 2029

CCC-I

CCC-II

CCC-III

Laying the foundations

FY2030

Promoting digital transformation (DX), management conscious of capital costs
FY2020

FY2023

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Moving to achieve business growth, stronger earnings capabilities, and the Long-term Strategic Vision(CCC-II strategic courses of action)

Strategic course of action

Specific CCC-II policies and initiatives

Growing the Printing inks /Digital and Specialty productbusinesses◼ Business structural reforms (portfolio revisions)

Enhancing ESG andsustainability initiatives with
an emphasis on theenvironment and local
communities◼ Formulation and review ofvarious policies◼ Quantifying the financial impact ofsustainability◼ TCFD and TNFD initiatives◼ Promoting global ESG governance◼ SBT certification◼ Improving external evaluations◼ Contributing to sustainability in the package industry◼ Enhancement of global operations◼ Accelerating commercialization◼ Technology creation in target areas

Tackling new business areas◼ Developing HR and corporate culture for tackling new fields and global
success◼ Open innovation
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Moving to achieve business growth, stronger earnings capabilities, and the Long-term Strategic Vision(CCC-II transformation projects)

Transformational projectSpecific CCC-II policies and initiatives◼ Building a global strategic promotion structure

Further enhancing global
consolidated management◼ Enhancing the governance structure through the Asia regional
management company◼ Promoting global projects (sales, ESG, procurement, safety, quality)◼ Strengthening IR activities and enhancing dialogue with investors

Strengthening stakeholder
relationships◼ Proactive disclosure of financial and nonfinancial information, andenhanced dialogue-building◼ Enhancing internal branding◼ Growing and enhancing programs and systems to enable employees to energeticallytackle new challenges

HR development
enhancements, organizational
culture reforms◼ Introducing educational and development systems to promote autonomous careerbuilding◼ Holding meetings to exchange viewpoints and to deepen understanding of andsympathy with Company vision and policies◼ Offering new workstyles targeting well-being, higher productivity, and cocreation
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Medium-term Management Plan 2026 (CCC-II): Target and KPI

Medium-term Management Medium-term Management
Plan CCC-I
Plan CCC-II

FY2023-FY2026

FY2023 result

Profit margin

FY2026 plan

Profit margin

Net sales

228.3

-

270.0

-

+41.7

+18%

Operatingincome

11.3

5.0%

18.0

6.7%

+6.7

+59%

Ordinary
income

13.6

6.0%

19.0

7.0%

+5.4

+39%

7.4

3.3%

12.7

4.7%

+5.3

+71%

Unit: Billion yen

Net income
attributable toowners of parent

ROE

8.1%

10.0% or higher

ChangeGrowth rateーCopyright © SAKATA INX CORPORATION. All Rights Reserved.

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Summary of the ten-year FY2020-2030 Long-term Strategic Vision

Net sales

Operating income

Unit: Billion yen

270.0
228.3

300.0
24.0
24.0

18.0
18.0

161.5
11.3
11.3

7.2
7.2

0.0

JPY/USD

0.0

FY2020Results

FY2023CCC-I

FY2026
CCC-II

FY2030Long-term Strategic Vision

106.82140.56135.00105.00
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Segment profit/loss

FY2023

FY2026FY2023-FY2026

Net sales

OperatingincomeChange in net
sales

Net sales
growth rate

Change inoperatingincomeOperatingincomegrowth rate

0.5

53.0

2.9

+0.9

+1.7 %+2.4

5.8 times

52.4

4.3

66.7

4.3

+14.3

+27.3 %

+0.0

+0.0 %

Americas

78.5

4.3

92.8

4.9

+14.3

+18.2 %

+0.6

+14.0 %

Europe

19.5

(0.7)

21.2

0.5

+1.7

+8.7 %+1.2-

Digital andSpecialty
products

16.8

1.8

24.4

4.4

+7.6

+45.2 %

+2.6

2.4 times

Other

15.3

0.4

20.0

1.8

+4.7

+30.7 %

+1.4

4.5 times

Adjustments

(6.4)

0.6

(8.1)

(0.8)

(1.8)

-

(1.5)

-

Consolidated
total

228.3

11.3

270.0

18.0

+41.7

+18.3 %

+6.7

+59.3%Net sales

Operatingincome

Japan

52.1

Asia

Unit: Billion yen

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Segment: Printing Inks and Graphic Arts Materials (Japan)

Performance targets

Basic strategies◼ Enhancement to and expanded sales of environmentallyfriendly products to raise sustainability in the package
business▍Net sales (Billion yen)
+JPY0.9 B+1.7 %FY2026
percentage ofnet sales:

52.1

53.0

FY2023
resultFY2026plan

19.1%◼ Promoting improvements in production efficiency andapproaches to cost-cutting that account for capital costs

Key measures
Packages field• Expanding sales of environmentally-friendly inks, centered on
BITANICAL INKs

▍Operating income (Billion yen)(e.g., BOTANICAL INK series, water-based inks, EB offset inks)• Introducing products and services that account for the transition topaper and recycling to reduce plastic waste (e.g., functional coatings,+JPY2.4 B
5.8 times

2.9

FY2026
percentage of
operating income:

15.5%
0.5
FY2023
result◼ Promoting business structural reforms and improving
profitability in response to the shrinking industry of paper
media-based printing

FY2026plande-inking anchor coatings)

Business structural reforms and profitability enhancements• Improving production efficiency and rebuilding production structures• Reorganizing domestic facilities to optimize sales and logistics
structures• Reallocating human resources to new businesses and priority
business areas• Putting management resources to effective use
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Segment: Printing Inks (Asia)

Performance targets

Basic strategies▍Net sales (Billion yen)

◼ Establishing foundations for global execution of
corporate strategy+JPY14.3 B+27.3 %◼ Reducing product costs and expanding sales ofenvironmentally-friendly products
FY2026
percentage ofnet sales:

66.7

52.4
FY2023
result24.0%

FY2026
plan▍Operating income (Billion yen)
+JPY0.0 B
FY2026
percentage of
operating income:

4.3

4.3

FY2023
resultFY2026plan◼ Introducing sustainable products for global accounts

22.5%

Key measures
India

ThailandGrowing sales of inexpensive highperformance inks to succeed in
rapidly growing markets (package
inks, UV inks)

Growing sales of package inks forink converters including major brandones

Indonesia

Local market development for waterbased inks (Shanghai)

Establishing a position as the top
package ink producer in the country
and developing new customers
through gas barrier materials

Vietnam

China

Establishing an Asia regional
management company in
Malaysia

Increasing production capacity andgrowing sales of package inks, forwhich demand is booming;enhancing exports to nearby growthmarkets

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Asia regional management company

Aims of the regional management company

Strategy formulation, implementation, and management in the Asia region
Enhancing governance
Promoting Group policies(e.g., ESG management)

Enhancing risk
management structures(e.g., compliance)

Maximizing Group earnings

Enhancing safety andquality structures(e.g., BCP)

Drafting and executing
area strategies

Materials procurement
strategies(e.g., joint procurement)

Putting resources toeffective use(e.g., production facility
optimization)

SAKATA INX

SAKATA INX ASIA HOLDINGS SDN. BHD.

India

Malaysia

VietnamIndonesia

Philippines

Thailand

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Segment: Printing Inks (Americas)

Performance targets

Basic strategies◼ Growing sales volume and market share, backed bystrong consumption▍Net sales (Billion yen)
+JPY14.3 B+18.2 %FY2026
percentage ofnet sales:

78.5

92.8

FY2023
resultFY2026plan

33.4%

FY2026
percentage of
operating income:

4.3

4.9

FY2023
resultFY2026plan

Key measures
North America• Building a new plant for package inks and enhancing facilities
at the existing plant in response to growth markets• Maintaining high market shares based on expectations forrevived growth in the metal ink market▍Operating income (Billion yen)
+JPY0.6 B+14.0 %

◼ Promoting production capacity enhancements andproduction efficiency improvements based on review ofcapital investment and production structures

26.1%

South America• Growing production capacity and supply areas by bringing theColombia plant and the new Brazil plant online during 2024
• Growing the package ink market share in Brazil, expanding
sales to nearby markets and Central America• Targeting further growth in market share in metal inks throughemphasis on quality and price

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Segment: Printing Inks (Europe)

Performance targets

Basic strategies◼ Rebuilding production and sales structures▍Net sales (Billion yen)

◼ Promoting cost savings by developing procurement strategies◼ Developing and growing sales of environmentally-friendly andsustainable products+JPY1.7 B+8.7 %FY2026
percentage ofnet sales:

19.5

21.2

FY2023
resultFY2026plan

7.6%◼ Cutting costs by streamlining the product lineup and production
facilities; enhancing sales to major customers◼ Achieving progress on cutting raw material costs by promoting joint
procurement within the Sakata Inx Group◼ Promoting Groupwide deployment of Europe’s advanced environmental
regulations◼ Introducing gas barrier materials suited to the monomaterial shift,introducing de-inkable inks to promote recycling▍Operating income (Billion yen)
+JPY1.2 B

0.5

FY2023
resultFY2026
percentage of
operating income:

2.8%

(0.7)
FY2026plan

Key measures

UK
Striving to grow sales to major customers in addition to achieving
recovery in other areas to offset the lost Russian market
Spain
Further expanding sales of package inks to meet steadily growing demand
Germany
Leveraging the INX brand to expand sales to new customers and newmarkets

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Segment: Digital and Specialty Products

Performance targets

Basic strategies◼ Promoting global sales▍Net sales (Billion yen)

◼ Growing sales in regions and areas with high economic
growth+JPY7.6 B+45.2 %

◼ Promoting and strengthening strategic partnerships
FY2026
percentage ofnet sales:

24.4

16.8
FY2023
result8.8%

Inkjet inks
• Growing sales to the emerging markets
of apparel, food, and home furnishings
while maintaining existing market
shares• Expanding the introduction ofenvironmentally-friendly products (e.g.,
next-generation water-based inks,
environmentally-friendly UV inks),
expanding local production capacity

FY2026
plan▍Operating income (Billion yen)
+JPY2.6 B
2.4 times

FY2026
percentage of
operating income:

4.4
1.8
FY2023
resultFY2026plan

Key measures

23.7%

Toner
• Further sales expansion andcost-cutting• Securing new deals using
existing powder technologies
Can inks
Reentering the Japanese market

Display materials (e.g., pigment
dispersions)• Further growth in market share andsales to new customers• Leveraging technologies to advanceinto new fields (AR/VR, lens modules)• Promoting new product development
and joint development by exploringmarket needs and feasibility studies

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Initiatives in new fields

Sales target

Strategic keywords

5.0 B (FY2026)

Decarbonization

Improved QOL

Comfort andconvenience

Safety and security

JPY

Target domains◼ Open innovation and lean startup◼ Deploying our core competencies to address social issues

Business development domains

Electronics and energy

Providing sustainable solutions by developing newtechnologies and creating new business models

Integration of new technologies aimed at reducing
environmental impact of society
Decarbonization and green energy generation for asustainable society

Bio-based and non-fossil materials

Healthcare

Environmentally-friendly product development

Helping people live lives characterized by health andwell-being

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Initiatives in new fields
Details of main
initiatives◼ New business development
through cooperation◼ Drawing on core competencies tocreate new businesses

Business development domains
Product authentication solutions
Offering advanced brand protection solutions that draw on
our knowledge of product sales and domestic andinternational networks (OpSec)

Electronics and energy
Thermal management materials, next-generation solar cell materials,
electronics materials
Accelerating materials development and marketing to promote the generation and efficientuse of renewable energy (Electroninks, WFC, Matwerkz)

Bio-based and non-fossil materials

Digital can-printing inks
Developing inks for digital printing on metal cans andgrowing sales for canned beverages produced in smalllots, such as craft beers (Canworks)

Biomass resins

Environmentally-friendly coatings

New bio materials

PFAS-free paper package coatings; bringing to market
technologies that help achieve both safety and transition
from plastics (DetraPel)

Bio materials based on cell-free synthesis technologies for use in our businesses and forsustainable product development (Debut Bio)

Sustainable products
Developing and introducing functional package coatingsand EB inks

Developing environmentally-friendly biomass resins to contribute to carbon neutrality anddeveloping markets and applications therefor

Healthcare
Plant-based functional food materials
Developing plant-based functional food materials to further health (Salus Lab)
Note: Alliance partners are indicated in parentheses.

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Capital policies (cash allocation)

We will improve returns on capital and achieve sustained
growth while balancing financial soundness with investments
in growth and shareholder returns, and convey the efficacy andwith the aim of realizing afeasibility of these measures through IR activities,

Three-year totals

Shareholder return policy

Cash inflows

Cash outflows

Cash flow from operations

Business investments tostrengthen managementfoundations

JPY

40.0 BPBR of 1.0 or higher.

JPY

40.0 B

Proactive and stable returns ofdividends and agile purchase oftreasury stock
TargetTotal payout ratio of 50% or higher,
or DOE of 2.5% or higher

Strategic investments infuture growth

Dividends

15.0 BJPY

Use of interest-bearing debt

15.0 BJPY

Debt/equity ratio of approx. 0.4

Shareholder returns(Dividends + purchases of treasury
stock)

15.0 BJPY

FY2022/12

JPY30

FY2023/12

JPY35

FY2024/12 (planned)

JPY40

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Capital investment plans by region (three-year cumulative)

Unit: Billion yen

Americas
Asia

Japan

4.7

2.7

Europe0.9

16.7
Major investment details

Depreciation

20.0 B

JPY

Total capital
investment

25.0 B

JPY

Japan

USA

Asia-wide

Brazil◼ Tokyo Plant
Hazardous materials /raw materials warehouse◼ New package ink plant◼ ERP system adoption
and deployment◼ New package ink plant◼ JPY8.1 B (planned forcompletion in 2025)◼ JPY1.4 B◼ JPY3.1 B (planned forcompletion in 2024)◼ JPY0.9 B (planned forcompletion in 2026)

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Human capital policies

Ideal HR vision

Human resources with a global perspective capable of executing reforms autonomously,
who enjoy tackling challenges alongside those around them
CCC-II initiatives

Welcoming diversity

An environment that encourages the
pursuit of challenges

Enhancing education and
HR development programs

Well-being

Promoting reforms to create anorganization in which diverse
human resources can thrive

Structural reforms to ensure positive
evaluations of employees who seekout challenges and further
environmental improvements topromote employee autonomy

Providing opportunities for
growth and education to support
autonomous career building

Improving productivity bypromoting the sound mental andphysical health of employees◼ Enhancing education including support
for autonomous career building◼ Promoting various health programs to
be named to the White 500 in theCertified Health & Productivity
Management Outstanding
Organizations Recognition Program◼ Promoting hiring activities (for new
graduates and midcareer hires) and HR
assignments in line with management
strategies◼ At least 8.5% of managerial positions inJapan occupied by women◼ Boosting the percentage of employees
taking childcare leave (at least 70% ofmale employees)◼ DEIB training, human rights training,safety training (undergone by 100% of
employees)◼ Eliminating seniority-based aspects
and reforming the HR system to one
better suited to evaluating employees
who seek out challenges◼ Designing and enhancing systems forautonomous career planning by
employees◼ Enhancing reskilling support measures◼ Enhancing training programs todevelop global human resources◼ Preparing succession and development
plans for the next generation of leaders◼ Work environmental development andenhancements to realize diverse
workstyles (e.g., in workplaces andwork-life balance support programs)

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Digital transformation (DX) initiatives

Building a DX promotion
infrastructure◼ Updating the enterprise
resource planning system◼ Data science field◼ HR development(jointly with Shiga University)(improving digital literacy)

Existing business areas
Strengthening capital
cost management◼ Putting data-driven management into
practice◼ Transitioning from a managerial to anautonomous organization◼ KPI improvements and improved profitability

Creating new value◼ Business process improvements

New business areas◼ R&D and production technologies◼ Customer experience (CX)
◼ Business model◼ Contributing to a sustainable society
through supply chain visualization (CFP)

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Environmental value
Social value

The SAKATA INX Group seeks to achieve sustained growth (toward integration of ESG and business strategies)

Business themes Creating visual communication technologies

Realizing
our Purpose

ESG strategy

Achieving a Long-term
Strategic Vision

Creating information
culture for more
comfortable living

1. A decarbonized, cyclical society
in coexistence with nature
2. A safe, secure society
3. A society of shared value
creation

4. A fair society
5. A society characterized byrespect for human rights

CCC-III
CCC-II
CCC-I◼ Strategic courses of action (sustainability, enhancing
existing businesses, new businesses)◼ Reforms (enhancing consolidated management, stakeholder
dialogue, HR/organizational culture)

Business strategies
Sales strategy

Procurement
strategy

Production
strategy

Environmental
strategy

Research
strategy

DX strategy

IP strategy

Organizational
strategy

HR strategy

Tax strategy

Economic value
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Evolutionary steps in sustainability management
CCC-I

CCC-II

CCC-III(FY2021-FY2023)(FY2024-FY2026)(FY2027-FY2029)
STEP 3

STEP 2
STEP 1
Identifying policies
and issues◼ Identifying societal
goals and material
topics◼ Sharing values andawareness among
management andemployees

Introducing and optimizing various measures◼ Promoting the integration of ESG and business strategies◼ Developing and implementing plan-do-check-act (PDCA)
cycle• Formulating and reviewing various policies (DX policy formulation andtweaking to meet social trends)

Creating social andeconomic values◼ Deployment of longterm and social
perspectives inbusiness◼ Further permeation
among stakeholders

Long-term
Strategic Vision

FY2030
Full integration ofsustainable business andmanagement• Improving ESG evaluation (e.g., EcoVadis, CDP score, FTSE)

Environment• TCFD initiatives (formulating strategies to transition to carbon
neutrality, incorporation into business strategies, quantifying financial
impacts)• Launching the Long-term
Strategic Vision• TNFD initiatives (information gathering for disclosure;risk/opportunities identification and formulation of measures by the
LEAP approach)• Establishing the new ESG
Promotion Division• SBT certification (setting reduction targets and measures, enhancing
CO2 reductions at overseas subsidiaries)• Formulating various policies

Society• Ensuring thoroughunderstanding of Group
policies

Human rights due diligence (encouraging due diligence andunderstanding at suppliers and due diligence for Group employees)• TCFD, CDP initiatives

Governance• Sedex, EcoVadis evaluation

Enhancing the global management structure (establishing sustainability
information-sharing structure at the global level)• Establishing CSV models
and CE• Integrating financial andnonfinancial aspects• Appropriate disclosure• Compliance withinternational sustainability
standards• Enhancing Group
governance

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Corporate Communications Department, SAKATA INX CORPORATION
Contact

https://www.inx.co.jp/english/contact/