IR Briefing for Q3
Fiscal Year ending March 2024
February 2024

Inabata & Co., Ltd.

Consolidated Results Review－Q3 FY03/2024
Net sales:¥572.9 billion+2.1% YoY

¥16.3 billion+1.2% YoY

¥16.4 billion+6.5% YoY

Net sales rose thanks to contributions from newly consolidated subsidiaries(through M&A) and a weak yen.

Operating profit:

Operating profit expanded due to growth in net sales and an increase in ourgross profit margin.

Ordinary profit:

Despite a decrease in dividend income, ordinary profit grew thanks to theexpansion in an improvement in equity-method income.
Profit attributable to¥billion+8.7% YoY
owners of parent:
Profit attributable to owners of parent rose, overcoming a decrease in gains on salesof investment securities through gains on negative goodwill recorded in association
with newly consolidated subsidiaries.

16.6

2Copyright © INABATA＆CO., LTD. 2024

Consolidated Results Review－Q3 FY03/2024(Billions of yen)
YoY change
FY03/24
Forecast(B)

Achievement
rate（ A)/(B)

+2.1%

800.0

71.6%

+0.1

+1.2%

21.0

77.7%

16.4

+1.0

+6.5%

20.0

82.0%

15.3

16.6

+1.3

+8.7%

21.0

79.5%

136.49143.33+6.84

Q3 FY03/23

Q3 FY03/24(A)

AmountNet sales

561.1

572.9

+11.8

Operating profit

16.1

16.3

Ordinary profit

15.3

Profit attributable toowners of parent
Exchange rate
(USD/JPY)%

140.003Copyright © INABATA＆CO., LTD. 2024

Trend in Net Sales
Net sales(Billions of yen)

1,000.0

1-3Q

Full year

800.0

600.3

600.0

458.5

577.5
420.3

400.0

680.9
504.9

Full-year forecast

735.6
561.1

572.9

% Achieved

71.6％

200.00.0(Reference)
Exchange
rate:
USD/JPY

800.0

FY03/20

1-3Q
Full year

FY03/21

FY03/22

FY03/23

FY03/24

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24108.65108.70106.11106.10111.14112.39136.49135.50143.33*Note140.00
Note: Estimation at time of release* Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) effective from Q1 FY03/22

4Copyright © INABATA＆CO., LTD. 2024

Trend in Operating Profit
Operating profit(Millions of yen)

1-3Q

25,00020,05220,00015,00010,000

Full year

13,22910,43514,973

16,335Full-year forecast

21,00020,314
16,126

10,61016,319% Achieved

77.7%

5,000
0

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

Notes: Recorded ¥0.75 billion in reversal of allowance for doubtful accounts at a European subsidiary in FY03/21

5Copyright © INABATA＆CO., LTD. 2024

Trend in Ordinary Profit
Ordinary Profit(Millions of yen)

1-3Q

25,000

Full year
Full-year forecast

21,64820,00015,00014,211
11,587

16,514

17,82919,11015,394

11,99620,00016,402% Achieved

82.0％

10,0005,0000FY03/20FY03/21

FY03/22

FY03/23

FY03/24
6Copyright © INABATA＆CO., LTD. 2024

Trend in Profit Attributable to Owners of Parent
Profit attributable toowners of parent(Millions of yen)

25,000

1-3Q

Full year

20,00018,281

15,000Full-year forecast

22,351
19,47815,357

13,792
11,415

10,00021,00016,686% Achieved

9,113

9,486

FY03/20

FY03/21

79.5％

5,000
0

FY03/22

FY03/23

FY03/24

Note: Recording of gain on sales of investment securities:¥3.03 billion in FY03/20, ¥2.98 billion in FY03/21, ¥8.97 billion in FY03/22, ¥8.66 billion in FY03/23¥1.79 billion in Q3 FY03/20, ¥1.49 billion in Q3 FY03/21, ¥7.13 billion in Q3 FY03/22, ¥6.42 billion in Q3 FY03/23, ¥3.71 billion in Q3 FY03/24

7Copyright © INABATA＆CO., LTD. 2024

Balance Sheet Cash and deposits, notes and accounts receivable–trade, and note and accounts
payable–trade increased due to newly consolidated subsidiaries and a weak yen.
 Shareholder's equity increases as a result of a rise in retained earnings.

(Billions of yen)

AssetsCash and deposits
Notes receivable - trade
Accounts receivabletrade
Inventories
Other current assets
Property, plant andequipmment
Intangible assets
Investment securities
Other fixed assets
Total assets

Current ratio

End-FY03/23

36.3
23.2
153.6
88.8
13.2
16.6
2.4
32.8
13.2
380.4

EndDEC 2023

ChangeLiabilities and netassets
Notes and accounts
payable - trade
Short-term loans
payable48.0 +11.6
29.8 +6.5
171.2 +17.6 Other current liabilities
82.7 -6.1 Bonds payable
Long-term loans
9.5 -3.6 payable
Other non-current
18.1 +1.5 liabilities
3.4 +1.0 Shareholders' equity
Accumulated other32.4 -0.3 comprehensive income
Non-controlling
14.5 +1.3 interests
Total liabilities and net
409.9 +29.5 assets

181.7% 187.9%

Equity ratio

End-FY03/23

EndDEC 2023

Change

105.7
49.4
18.3
7.5
7.7
10.1
148.5
30.9
2.0
380.4

123.3 +17.6
42.2 -7.2
16.0 -2.3
7.5
13.3 +5.5
10.9 +0.8
157.0 +8.4
33.1 +2.2
6.3 +4.2
409.9 +29.5

47.2%

46.4%
8Copyright © INABATA＆CO., LTD. 2024

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

Equity capital

Net interest-bearing debt

200173.8150

Net debt/equity ratio(Times)

190.1

0.80

179.4

174.9

145.9

0.60

10050

0.40

23.4
00.17

0.16
0.06
9.7

29.1

0.16
28.4

End-FY03/20 End-FY03/21 End-FY03/22 End-FY03/23

0.08
15.0
End-Dec/23

0.20

0.00

Notes: Equity capital = Net assets – stock acquisition rights – non-controlling interests
Net debt/equity ratio = (Short-term loans payable + Long-term loans payable + Bonds payable – cash and deposits) / equity capital9Copyright © INABATA＆CO., LTD. 2024

Sales by Business Segment
 Net sales grew in Chemicals and Life Industry, owing in part to contributions
from newly consolidated subsidiaries.

Sales(Billions of yen)

1-3Q
FY03/23

1-3Q
FY03/24

YoYchangeInformation & Electronics

178.9

177.8

-0.6%

Chemicals

68.6

84.5

+23.2%

Life Industry

32.5

39.6

+21.6%

Plastics

280.8

270.8-3.6%

Other

0.1

0.1

+2.8%

Total

561.1

572.9

+2.1%

*Contributions from newly consolidated subsidiaries in Q3 FY03/24 (simple sum):
Chemicals: +¥21.8 billion, Plastics: +¥9.8 billion, Life Industry: +¥7.1 billion

Information &Electronics:
31.0%

Plastics:
47.3%

LifeIndustry:
6.9%

Chemicals:
14.8%

10Copyright © INABATA＆CO., LTD. 2024

(Reference) FY03/24 Q3
Net Sales Breakdown by Segment and Region(Billions of yen)

Information &Electronics

ChemicalsLife Industry

Plastics

Total

OtherJapan

61.1

64.9

30.8

101.8

-

258.7

Southeast
Asia
Northeast
Asia

14.3

10.2

0.1

110.0-

134.7

81.3

3.9

1.4

44.5

-

131.2

Americas

10.8

3.9

5.5

12.8-

33.1

Europe

10.1

1.4

1.5

1.6-

14.8

177.884.5

39.6

270.8

-572.8Other revenue----

0.1

0.1

Sales toexternalcustomers

177.8

84.5

39.6

270.8

0.1

572.9

Revenue arisingfrom contracts
with customers

11* Revenue arising from contracts with customers are recorded based on the location of corresponding sales offices,categorized by country or region.
Copyright © INABATA＆CO., LTD. 2024

Operating Profit by Business Segment
 Profit grew in Information & Electronics, as sales of FPD-related products recovered slightly and sales ofenvironment and energy-related products increased.
 Profit was down in Chemicals, due in part to an unfavorable comparison with the relatively strong
performance observed in Q3 FY03/23.
 Profit fell sharply in Life Industry, as a result of lower sales and diminished profitability of seafood productsin the US and one-time M&A expenses.
 Profit was down in Plastics, due to inventory adjustments of products for office automation and homeelectronics applications.

Operating profit(Millions of yen)

1-3Q
1-3Q
YoY
FY03/23 FY03/24 change
4,227

5,213

+23.3%

Chemicals

2,215

2,130-3.8%

Life Industry

1,462

1,098-24.9%

Plastics

8,123

7,773

-4.3%

Other

97103

+6.2%

Total

16,126

16,319+1.2%

Information & Electronics

Other:
0.6%

Plastics:
47.6%

LifeIndustry:
6.7%

Information &Electronics:
31.9%

Chemicals:
13.1%

12Copyright © INABATA＆CO., LTD. 2024

Returning Profits to Shareholders ①

Basic Policy on Shareholder Return
During NC2023

 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 × 100

13Copyright © INABATA＆CO., LTD. 2024

Returning Profits to Shareholders ②
Annual dividends per share and indicators of shareholder return
Dividend(Yen)Dividend payout ratio

366353484040110

Total return ratio

62.2%

46.5%

31.1%

34.8%

23.7%

25.6%

FY03/16

FY03/17

30.0%

36.4%

22.7%

FY03/18

FY03/19

Approx.
50%
target

27.6%

28.1%

27.5%

29.4%

33.5%

31.9%

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24(Forecast)

NC2023

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

Acquisition
amount

707

891

679

936

425

No. of shares
Acquired600

600

400

600

No. of sharescancelled----*1 Share buyback based on Board resolution*2 Amounts current as of December 31, 2023

47.1%
31.9%

NC2020Treasury
Shares*1120115

FY03/21

FY03/22

FY03/23

FY03/24*2

-

7,499

2,635

2,229300-

3,085

1,035765-

-

2,700

3,685

1,200

(Millions of yen)(Thousandsof shares）(Thousandsof shares）

14
Copyright © INABATA＆CO., LTD. 2024

Consolidated Subsidiaries
Companies
Consolidated subsidiaries(Of which, manufactures andprocessing companies )Equity-method affiliates(Of which, manufactures andprocessing companies )Total(Of which, manufactures andprocessing companies )JapanOverseas

Total

113546(6)

(15)

(21)

213(1)(1)(2)

133649(7)

(16)

(23)

* In Q1 FY03/24, Maruishi Chemical Trading, formerly an equity-method affiliate of the Company, was made a consolidatedsubsidiary. The Company also made Maruishi Techno, Daigo Tsusho, and IK Food Partners consolidated subsidiaries.

15Copyright © INABATA＆CO., LTD. 2024

(Reference) Equity Capital(Billionsof yen)

Capital stock and capital surplus
Treasury shares
Deferred gains or losses on hedges
Remeasurements of defined benefit plans

173.8174.9

179.4

190.1

145.9

4.5

1.4
26.1

39.3

11.7
22.6

17.1
12.8

22.5
9.7

130.5

134.6

141.3

200

150

Retained earnings
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

100

106.1
50

0

-50

17.1

116.7

Deferred
gains orlosses onhedges:0.1
Treasuryshares:-4.1
Remeasureme
nts of defined
benefit plans:-1.0

FY03/20

16.5

Deferred
gains orlosses onhedges:0.1
Treasuryshares:-4.1
Remeasureme
nts of defined
benefit plans:-0.5

FY03/21

16.4

Deferred
gains orlosses onhedges:0.3
Treasuryshares:-7.3
Remeasureme
nts of defined
benefit plans:
0.5

FY03/22

16.0

Deferred
gains orlosses onhedges:0.3
Treasuryshares:-2.2
Remeasureme
nts of defined
benefit plans:
0.5

FY03/23

16.5

Deferred
gains orlosses onhedges:0.4
Treasuryshares:-0.9
Remeasureme
nts of defined
benefit plans:
0.4

End-Dec/23
16
Copyright © INABATA＆CO., LTD. 2024

(Reference) Trends in average foreign exchange rates(Yen)

USD/JPY

150.00CNY/JPY
135.50100.00108.70106.10143.33112.39

50.00

0.00

15.55

15.68

17.51

19.75

19.98

FY03/20

FY03/21

FY03/22

FY03/23Q3 FY03/24

17Copyright © INABATA＆CO., LTD. 2024

 IR Inquiries

IR Department, Financial Management Office, Inabata & Co., Ltd.
E-mail: inabata-ir@inabata.com

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. The data and future forecasts contained
herein may include elements that are subject to change, and this document and its contents are no
guarantee of future performance.
Presentation of numbers
Yen figures presented in these materials have been rounded off below the unit indicated. Consequently,individual figures may not sum to the total amounts indicated.

18
Copyright © INABATA＆CO., LTD. 2024