IR Briefing for 1H
Fiscal Year Ending March 2023
(Overview)
December 5, 2022

Inabata & Co., Ltd.
Kenichi Yokota
Director and Senior Managing Executive Officer

Consolidated Results Review－1H FY03/23
Net sales:¥373.4 billion+13.6% YoY

Net sales grew backed by rising selling prices of raw materials anda weaker yen

Operating profit:¥10.5 billion-4.8% YoY

Operating profit decreased due primarily a decline in contribution
from the Information & Electronics segment.

Ordinary profit:¥10.3 billion-14.4% YoY

Ordinary profit fell as a result of lower operating profit and higher
non-operating expenses
Profit attributable to：owners of parent:¥9.6 billion-28.9% YoYProfit attributable to owners of parent declined due to decreases inordinary profit and gain on sales of investment securities
2Copyright © INABATA＆CO., LTD. 2022

Consolidated Results Review－1H FY03/23(Billions of yen)

YoY change
FY03/23
Forecast(B)

Achievement
rate(A)/(B)

1H FY03/22

1H FY03/23
(A)

328.5

373.4

+44.8 +13.6%

730.0

51.2%

Operating profit

11.0

10.5

-0.5

-4.8%

19.554.1%

Ordinary profit

12.0

10.3

-1.7 -14.4%

20.5

50.3%

Profit attributable toowners of parent

13.5

9.6

-3.9 -28.9%

20.5

46.9%

Exchange rate
(USD/JPY)

109.81

Net sales

Amount134.03 +24.22%

140.003Copyright © INABATA＆CO., LTD. 2022

Trend in Net Sales
Net sales(Billions of yen)

1H

800.0

600.3

600.0

322.4

Full year

730.0
680.9

634.7

400.0

Full-year forecast

577.5
373.4

328.5

307.6

267.1
% Achieved

200.0

51.2%

0.0

（Reference)
Exchangerate:
USD/JPY

FY03/19

1H
Full yearFY03/20

FY03/21

FY03/22

FY03/23

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23110.26110.92108.60108.70106.93106.10109.81112.39134.03(Note) 140.00* Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29) effective from Q1 FY03/22.

Note: Estimate at time of release4

Copyright © INABATA＆CO., LTD. 2022

Trend in Operating Profit
Operating profit(Millions of yen)

1H

Full year

25,000Full-year forecast

20,05220,00015,00014,031

19,50014,973
13,22911,076

10,546

10,000

7,105

7,126

6,212% Achieved

54.1%

5,000

0

FY03/19

FY03/20

FY03/21

FY03/22

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

FY03/23
5Copyright © INABATA＆CO., LTD. 2022

Trend in Ordinary Profit
Ordinary profit(Millions of yen)

1H

Full Year

25,00021,648Full-year forecast

20,50020,00016,51415,00014,30914,211
12,042

10,31010,000

7,154

7,941

6,948

% Achieved

50.3%

5,000

0

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23
6Copyright © INABATA＆CO., LTD. 2022

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

1H

25,000

Full year

22,351

Full-year forecast

20,50020,00015,00013,792 13,518

12,896

11,4159,616

10,000

6,247

6,738

5,851

% Achieved

46.9%

5,000

0

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

Note: Recording of gain on sales of investment securities:¥5.11 billion in FY03/19, ¥3.03 billion in FY03/20, ¥2.98 billion in FY03/21, ¥8.97 billion in FY03/22
7¥1.74 billion in 1H FY03/19, ¥1.72 billion in 1H FY03/20, ¥1.41 billion in 1H FY03/21, ¥6.54 billion in 1H FY03/22, andCopyright © INABATA＆CO., LTD. 2022
¥3.45 billion in 1H FY03/23

Balance Sheet• Accounts receivable, inventories, and loans of overseas subsidiaries increased
due primarily to yen depreciation• Investment securities declined due to a drop in market value and sales ofshareholdings(Billions of yen)
Assets

End-FY03/22

EndSep. 2022

ChangeLiabilities and net assets

Cash and deposits

35.4

30.7-4.6

Notes and accounts
payable - trade

Notes and accounts
receivable - trade

184.6

187.3

+2.6

Inventories

79.0

93.7

Other current assets

12.3

Property, plant andequipmment
Intangible assets

End-FY03/22

EndSep. 2022

Change

115.9

104.6

-11.3

Short-term loans payable

58.6

68.9

+10.3

+14.6

Other current liabilities

18.5

18.5

-0.0

13.2

+0.9

Long-term loans payable

5.8

5.1

-0.7

15.3

16.7

+1.4

Other non-current
liabilities

13.0

11.5

-1.5

2.6

2.4

-0.1

Shareholders' equity

139.5

143.2

+3.6

Investment securities

48.3

38.5

-9.7Accumulated othercomprehensive income

35.3

40.6+5.3

Other fixed assets

11.2

11.8

+0.5

Non-controlling interests

1.9

1.9

-0.0

Total assets

389.0

394.7

+5.6

Total liabilities and netassets

389.0

394.7

+5.6

Current ratio

161.2%

169.2%

Equity ratio

45.0%

46.6%

* Notes and accounts receivable–trade: ¥22.5 billion in notes receivable and ¥162.1 billion in accounts receivable at end-March 2022
¥23.1 billion in notes receivable and ¥164.2 billion in accounts receivable at end-September 2022

8Copyright © INABATA＆CO., LTD. 2022

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

183.9

145.9

150(Times)

0.60

100

0.40

0.24
50

0.19
30.3

0.17

0.16
23.4

0.06
9.7

43.4

0.20

29.1

00.00
End-FY03/19 End-FY03/20 End-FY03/21 End-FY03/22 End-Sep. 2022

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

9Copyright © INABATA＆CO., LTD. 2022

Sales by Business Segment✓Net sales grew in Plastics and Chemicals owing to a weaker yen andrising raw material prices

Sales(Billions of yen)YoY
1H FY03/22 1H FY03/23
changeInformation & Electronics
ChemicalsLife Industry
Plastics
OtherTotal

123.8 118.9 -4.0%
36.0
45.6 +26.7%
18.3
21.5 +17.8%
150.2 187.1 +24.5%
0.0
0.0 +1.6%
328.5 373.4 +13.6%

Plastics:
50.1%

Information &Electronics:
31.9%

Chemicals:
12.2%Life Industry:
5.8%

10Copyright © INABATA＆CO., LTD. 2022

(Reference) 1H FY03/23
Net Sales Breakdown by Segment and Region(Billions of yen)Japan

Information &Electronics

ChemicalsLife Industry

43.4

30.8

14.8

58.9

-

148.1

Total

OtherPlastics

Southeast
Asia
Northeast
Asia

9.2

5.7

0.1

84.4

-

99.6

55.6

3.7

0.4

34.7

-

94.5

Americas

6.2

3.1

5.1

7.2

-

21.7

Europe

4.2

2.1

1.0

1.7

-

9.2

Revenue arisingfrom contracts
with customers

118.9

45.6

21.5

187.1

-

373.3

Other revenue----

0.0

0.0

118.9

45.6

21.5

187.1

0.0

373.4

Sales toexternalcustomers* Revenue arising from contracts with customers are recorded based on the location of corresponding sales offices,11
categorized by country or region.
Copyright © INABATA＆CO., LTD. 2022

Operating Profit by Business Segment✓ Profit generated through the Information & Electronics segment declined due to a decreasein sales of flat panel display-related materials and growth in SG&A expenses.
✓ In Chemicals, profit grew backed by robust performance in addition to a weaker yen andrising sales prices✓Profit generated through the Life Industry segment declined due to a decrease in profit
margin of seafood products in the US and growth in SG&A expenses.

Operating profit(Millions of yen)

1H FY03/22 1H FY03/23 YoY change
Information & Electronics
ChemicalsLife IndustryPlastics
OtherTotal

3,738 2,643 -29.3%
1,042 1,406 +34.8%
1,367 1,171 -14.3%
4,860 5,261 +8.2%
66
63 -4.4%
11,076 10,546 -4.8%
12Copyright © INABATA＆CO., LTD. 2022

Sales by Region✓Southeast Asia, Americas, Europe
Achieved sales increase thanks primarily to depreciation of the yenSales(Billions of yen)

1H FY03/22 1H FY03/23
Southeast Asia
Northeast Asia
AmericasEuropeJapan
Total(Overseas ratio)

76.6
94.6
15.5
5.8
135.8

YoY
change99.6 +29.9%
94.5 -0.1%
21.7 +39.7%
9.2 +59.5%
148.1 +9.1%

328.5
373.4 +13.6%(58.6%) (60.3%) (+1.7%)

Japan:
39.7%

Southeast Asia:
26.7%

Northeast Asia:
25.3%
Europe:2.5%
Americas:5.8%

Note: Sales in the Japan segment include exports (¥24.2 billion in 1H FY03/23). Including this amount,the percentage of overseas sales was 64.2% in 1H FY03/22 and 65.1% in 1H FY03/23.

13Copyright © INABATA＆CO., LTD. 2022

Operating Profit by Region✓ Northeast Asia

Profit declined due to a decrease in sales of flat panel display-related materials
and growth in SG&A expenses.

✓ JapanSales of flat panel display-related materials fell, and price hikes implemented byGroup companies for bag products lagged behind increases in correspondingcosts. Accordingly, the Company reported a decrease in profit generated in Japan.

Operating profit(Millions of Yen)

1H FY03/22 1H FY03/23 YoY changeSoutheast Asia
Northeast Asia
AmericasEuropeJapan
SubtotalElimination orcorporate
Total

3,288 3,941
2,229 1,777
802904334425
4,445 3,462
11,100 10,512-23+19.8%-20.2%+12.7%+27.4%-22.1%-5.3%

34

11,076 10,546 -4.8%(Overseas ratio) (60.0%) (67.1%) (+7.1%)

Japan:
32.9%

Southeast Asia:
37.5%

Northeast Asia:
16.9%

Europe:4.1%
Americas:
8.6%

14
Copyright © INABATA＆CO., LTD. 2022

Sales and Operating Profit in the Manufacturing Sector
Despite growth in sales, operating profit fell as electronic component shortages
and other obstacles caused sluggish performance from processing operations
conducted through compound manufacturing plants in Southeast Asia.

Sales(Billions of yen)

(Millions of yen)

50.0

Operating profit

1,500

37.7

1,29138.3

1,074
1,00025.0
5000.00

1H FY03/22

1H FY03/23

1H FY03/22 1H FY03/23

Note: Results for 1H FY03/22 have been converted at the exchange rate for 1H FY03/23 (USD1=JPY134.03).

15Copyright © INABATA＆CO., LTD. 2022

Net Sales by Business Segment (Full Year)✓ Initial individual segment forecasts for FY03/23 have been revised.
(Billions of yen)

800.0730.0680.9
600.3
Other

600.00.2

Other

0.1

577.5

Other

Other

0.1

270.3

Other

0.1

316.2

363.3
Plastics

248.8

Life Industry

400.0

38.2
78.6

46.5
90.5

36.9
74.1

37.3
66.6

218.6

224.5

247.7

229.5

FY03/20(Actual)

FY03/21(Actual)

FY03/22(Actual)

FY03/23(Forecast)

200.0

Chemicals
Information &Electronics

0.0Notes: The initial FY03/23 forecast:Information & Electronics ¥273.0 billion, Chemicals ¥83.0 billion, Life Industry ¥47.0 billion, Plastics ¥326.8 billion, Other ¥0.2 billion
16Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) effective
Copyright © INABATA＆CO., LTD. 2022
from FY03/22.

Operating Profit by Business Segment (Full Year)✓ Initial individual segment forecasts for FY03/23 have been revised.
(Billions of yen)

25.0

20.0
Other

20.0

15.0

5.0

14.9 Other
13.2 Other

0.13

1.16
1.20

FY03/20(Actual)

8.67

0.10

Other
Plastics

9.70

5.63

6.23

4.48
0.0

Other

0.12

0.13
10.0

19.5

Life Industry
Chemicals

2.61
1.56
1.32

2.20

6.32

6.42

FY03/21(Actual)

FY03/22(Actual)

2.60

Information &Electronics

2.60
4.50
FY03/23(Forecast)

Notes: The initial FY03/23 forecast
Information & Electronics ¥6.20 billion, Chemicals ¥2.00 billion, Life Industry ¥2.30 billion, Plastics ¥8.90 billion, Other ¥0.10 billion
17
Recorded ¥0.75 billion in reversal of allowance for doubtful accounts in the Information & Electronics segment
Copyright © INABATA＆CO., LTD. 2022
in FY03/21.

Consolidated Subsidiaries

Consolidated subsidiaries(Of which, manufactures andprocessing companies )Equity-method affiliates(Of which, manufactures andprocessing companies )Total(Of which, manufactures andprocessing companies )JapanCompanies
Overseas

Total

73643(5)

(16)

(21)

415(2)(1)(3)

113748(7)

(17)

(24)

18
Copyright © INABATA＆CO., LTD. 2022

Principle Consolidated Subsidiaries(Millions of yen)

1H FY03/22
CompanyLocation

Taiwan Inabata Sangyo
TaiwanCo., Ltd.
Inabata Sangyo (H.K.)
Hong KongLtd.
Inabata Singapore
Singapore(Pte.) Ltd.

Net sales

1H FY03/23

YoY change

OperatingNet
Operating
Net income Net sales
profitprofitincomeNet sales

Operating
Net income
profit20,680515

392 15,486229

137 -25.1% -55.6% -65.0%

47,538857

1,092 38,359

443

850 -19.3% -48.3% -22.1%

39,945767

963 38,031

682

1,057

-4.8% -11.0%-6.2% -30.8% -29.9%+9.7%

Inabata Thai Co., Ltd.

Thailand

25,560596

522 23,987

412

366

Shanghai Inabata
Trading Co., Ltd.

Shanghai

44,135894

703 38,240

829

520 -13.4%

PT. Inabata Indonesia

Indonesia

16,468683

540 18,750

807

607 +13.9% +18.1% +12.3%

Inabata Fine Tech &Co., Ltd.

Japan9,790

328

221 10,652

322

212

+8.8%-7.2% -26.1%-1.8%

Note: Results for 1H FY03/22 have been converted at the exchange rate for 1H FY03/23 (USD1=JPY134.03).

-4.0%

19Copyright © INABATA＆CO., LTD. 2022

(Reference) Equity Capital(Billionsof yen)

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

200

162.9
150

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

173.8

174.9

183.9

4.5

21.8
17.7

129.0

3.2

145.9

39.3

48.8

1.4
26.1

11.7
22.6

106.1 Deferred

116.7

130.5

10097.850
Treasury

0-50

17.1 shares:

17.1

-3.7
Remeasureme
nts of defined
benefit plans:-0.2

FY03/19

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

16.1

Deferred
gains orlosses onhedges:
0.6
Treasuryshares:-1.9
Remeasureme
nts of defined
benefit plans:
0.4

End-Sep.
2022
20Copyright © INABATA＆CO., LTD. 2022

(Reference) Impact of Exchange Rate Fluctuations on theForeign Currency Translation Adjustment
Foreign currency translation adjustment(Billions of yen)

30.0

21.8

20.0
10.0

11.7
3.2

1.4

FY03/19

FY03/204.5

0.0

FY03/21

USD/JPY(Yen)

FY03/22

End-Sep.
2022

CNY/JPY

150.00134.03100.00110.92108.70106.10112.39

16.54

15.55

15.68

17.51

19.89

FY03/19

FY03/20

FY03/21

FY03/22Q2 FY03/23

50.00
0.00

21Copyright © INABATA＆CO., LTD. 2022

 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 noguarantee 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.