IR Briefing for 1H
Fiscal Year Ending March 2024
(Overview)

December 5, 2023

Inabata & Co., Ltd.
Kenichi Yokota

Director and Senior Managing Executive Officer

Consolidated Results Review－1H FY03/24
Net sales:¥375.1 billion+0.5% YoY

¥10.4 billion-0.8% YoY

Despite contributions from newly consolidated subsidiaries (through M&A)
and a weak yen, net sales were flat YoY due to sales declines in Plastics
and Information & Electronics in Asia.

Operating profit:

Operating profit declined due to higher personnel and other expenses.

Ordinary profit:¥10.6 billion+3.4% YoY

Profit attributable to：owners of parent:¥12.5 billion+30.4% YoY

Recurring profit grew, despite a decline in dividend income and higher
interest expenses, owing to improvements in equity-method income.

Bottom-line profit expanded, owing to gains on negative goodwill (gain onbargain purchase) in connection with newly consolidated subsidiaries.
2Copyright © INABATA＆CO., LTD. 2023

Consolidated Results Review－1H FY03/24(Billions of yen)

YoY change

FY03/24
Forecast(B)

Achievementrate(A)/(B)

1H FY03/23

1H FY03/24(A)Amount

373.4

375.1

+17+0.5%

800.0

46.9%

Operating profit

10.5

10.4

-0-0.8%

21.0

49.8%

Ordinary profit

10.3

10.6

+3+3.4%

20.0

53.3%

Profit attributableto owners ofparent

9.6

12.5

+29 +30.4%

21.0

59.7%

Exchange rate
(USD/JPY)

134.03141.06+7.03

140.00Net sales%

3

Copyright © INABATA＆CO., LTD. 2023

Trend in Net Sales
Net sales(Billions of yen)

1H

1,000.0

Full year

800.0
600.0
400.0

600.3
307.6

577.5

Full-year forecast

375.1

373.4

328.5

267.1

735.6680.9% Achieved

46.9%

200.00.0（Reference)
Exchange
rate:
USD/JPY

800.0

FY03/20
1H
Full year

FY03/21

FY03/22

FY03/23

FY03/24

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24108.60108.70106.93106.10109.81112.39134.03135.50141.06140.00* Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29) effective from Q1 FY03/22.

(Note)

Note: Estimate at time of release4

Copyright © INABATA＆CO., LTD. 2023

Trend in Operating Profit
Operating profit(Millions of yen)

1H

25,000Full-year forecast20,052

20,00015,00010,000

Full year

13,2297,126

20,314

14,973
11,076

10,5466,212

FY03/20

FY03/21

10,465% Achieved

49.8%

5,000
021,000

FY03/22

FY03/23

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

FY03/24
5Copyright © INABATA＆CO., LTD. 2023

Trend in Ordinary Profit
Ordinary profit(Millions of yen)

1H

25,000

Full Year

21,648
19,11020,00015,00010,000Full-year forecast

14,211
7,941

16,514
12,042

10,310

6,948

10,656% Achieved

53.3%

5,000
020,000

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24
6Copyright © INABATA＆CO., LTD. 2023

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

1H

25,000

Full year

22,351
19,47820,00015,00011,415

13,792 13,518

6,738
5,000

FY03/20

21,00012,542
9,616

10,0000

Full-year forecast

5,851

FY03/21% Achieved

59.7%

FY03/22

FY03/23

FY03/24* 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¥1.72 billion in Q2 FY03/20, ¥1.41 billion in Q2 FY03/21, ¥6.54 billion in Q2 FY03/22, and ¥3.45 billion in Q2 FY03/23 , ¥3.57 billion in Q2 FY03/24 7Copyright © INABATA＆CO., LTD. 2023

Balance Sheet Cash and deposits, notes and accounts receivable–trade, inventories, andnote and accounts payable–trade increased due to newly consolidated
subsidiaries and a weak yen.
(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
02.4
32.8
13.2
380.4

EndSEP 2023

ChangeLiabilities and net
assets
Notes and accounts
payable - trade
Short-term loans
payable48.3 +11.9
28.6 +5.4
170.9 +17.3 Other current liabilities
91.7 +2.8 Bonds payable
Long-term loans
09.8 -3.3 payable
Other non-current
18.6 +2.0 liabilities
02.8 +0.3 Shareholders' equity
Accumulated other33.2 +0.4 comprehensive income
Non-controlling
14.5 +1.2 interests
Total liabilities and net
418.7 +38.2 assets

181.7% 184.5%

Equity ratio

End-FY03/23

EndSEP 2023

Change

105.7
49.4
18.3
7.5
7.7
10.1
148.5
30.9
2.0
380.4

128.3 +22.5
42.2 -7.2
18.9 +0.6
07.5
10.3 +2.5
10.6 +0.5
155.9 +7.3
38.7 +7.8
06.0 +4.0
418.7 +38.2

47.2%

46.5%
8

Copyright © INABATA＆CO., LTD. 2023

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

Equity capital

Net interest-bearing debt

200

173.8150

174.9

Net debt/equity ratio

179.4

194.6

0.80

145.9

0.60

0.40

100500(Times)

0.17

0.16
23.4

0.06
9.7

29.1

0.16
28.4

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

0.20

0.06
11.7
End-Sep/23

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 capital

9Copyright © INABATA＆CO., LTD. 2023

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

Sales(Billions of yen)

1H FY03/23 1H FY03/24
Information & Electronics

ChemicalsLife Industry
Plastics
OtherTotal

YoYchange118.9 116.2 -2.2%
45.6 54.5 +19.5%
21.5 25.4 +17.8%
187.1 178.8 -4.4%
0.0
0.0 +2.8%
373.4 375.1 +0.5%*Contributions from newly consolidated subsidiaries in Q2 FY03/24 (simple sum):
Chemicals: +¥14.4 billion, Plastics: +¥6.4 billion, Life Industry: +¥4.8 billion

Plastics:
47.7%

Information &Electronics:
31.0%Life Industry:
6.8%

Chemicals:
14.5%

10Copyright © INABATA＆CO., LTD. 2023

(Reference) 1H FY03/24
Net Sales Breakdown by Segment and Region(Billions of yen)

Information&Electronics

Chemicals Life Industry

Plastics

OtherTotal

Japan

39.7

42.3

19.9

66.2

-

168.3

Southeast
Asia
Northeast
Asia

9.5

6.2

0.1

73.7-

89.6

52.0

2.4

0.8

29.4-

84.8

Americas

7.4

2.3

3.5

8.4

-

21.9

Europe

7.3

1.0

0.9

1.0-

10.3

116.2

54.5

25.4

178.8

-

375.1Other revenue----

0.0

0.0

Sales toexternalcustomers

116.2

54.5

25.4

178.8

0.0

375.1

Revenue arisingfrom contracts
with customers* 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. 2023

Operating Profit by Business Segment
 Profit grew in Information & Electronics, as sales of FPD-related products bottomed out andsales of environment and energy-related products increased.
 Profit was down in Chemicals, due to difficult comparison with strong performance a year ago.
 Profit fell sharply in Life Industry, as a result of lower sales and diminished profitability ofseafood products in the US and one-time M&A expenses.
 Profit was down in Plastics, due to inventory adjustments of products for office automation andhome electronics applications.

Operating profit(Millions of yen)
Other
0.7%

1H FY03/23 1H FY03/24 YoY change
Information & Electronics
ChemicalsLife IndustryPlastics
OtherTotal

2,643 3,344 +26.5%
1,406 1,362 -3.1%
1,171651 -44.4%
5,261 5,037 -4.3%
6368 +8.9%
10,546 10,465 -0.8%

Plastics
48.1%

Information &Electronics
32.0%

LifeIndustry
6.2%

Chemicals
13.0%

12Copyright © INABATA＆CO., LTD. 2023

Sales by Region
 Southeast Asia: Sales were down despite a boost from a weak yen, due tolower sales volume of plastics.
 Northeast Asia: Sales declined due to sluggish sales of products for use inJapanese automobiles manufactured in China.

 Japan: Sales grew, due largely to contributions from newly consolidated subsidiaries.

Sales(Billions of yen)

1H
FY03/23
Southeast Asia
Northeast Asia
AmericasEuropeJapan99.6
94.5
21.7
9.2
148.1

1H
FY03/24

YoYchange

89.6 -10.0%
84.8 -10.3%
21.9 +0.6%
10.3 +12.0%
168.4 +13.7%

373.4
375.1 +0.5%(Overseas ratio) (60.3%) (55.1%) (-5.2%)
Total

Southeast Asia:
23.9%
Japan:
44.9%
Northeast Asia:
22.6%

Europe:2.8%

Note: Sales in the Japan segment include exports (¥25.0 billion in 1H FY03/24). Including this amount,the percentage of overseas sales was 65.1% in 1H FY03/23 and 60.0% in 1H FY03/24.

Americas:5.8%

13Copyright © INABATA＆CO., LTD. 2023

Operating Profit by Region
 Southeast Asia: Profit declined due in part to lower sales volume of plastics for office automation andhome appliances applications.
 Americas: Profit dropped due to lower profitability of seafood products, which performed strong a yearago.
 Europe: Profit fell due to sluggish sales of cosmetics-related materials at manufacturing subsidiaries.
 Japan: Profit grew, owing to contributions from newly consolidated subsidiaries and cost pass-throughsfor plastic bags at group companies.

Operating profit(Millions of Yen)

1H FY03/23 1H FY03/24 YoY changeSoutheast Asia
Northeast Asia
AmericasEuropeJapan
Subtotal
Elimination or
corporate
Total

3,941
1,777904
425
3,462
10,51234

3,450 -12.5%
1,772-0.3%
630 -30.3%
350 -17.7%
4,193 +21.1%
10,397-1.1%
68

10,546 10,465(Overseas ratio) (67.1%) (59.7%)

-0.8%
-7.4%

Southeast Asia:
33.2%

Japan:
40.3%

Northeast Asia:
17.0%
Europe:
3.4%

Americas:
6.1%

14

Copyright © INABATA＆CO., LTD. 2023

Sales and Operating Profit in the Manufacturing Sector
Profit increased, on the back of contributions from newly consolidated subsidiaries
and progress in cost pass-throughs for plastic bags by domestic manufacturingsubsidiaries.

Sales(Billions of yen)

50.040.0(Millions of yen)

1,50038.9

Operating profit
1,226

1,127
1,00025.0
5000.00

1H FY03/23

1H FY03/24

1H FY03/23

1H FY03/24

Note: Results for 1H FY03/23 have been converted at the exchange rate for 1H FY03/24 (USD1=JPY141.06).

15Copyright © INABATA＆CO., LTD. 2023

Net Sales by Business Segment (Full Year)No change has been made to the initial FY03/24 forecast by segment.
(Billions of yen)

1,000.0

800.0

600.0

400.0

200.0

0.0

735.6

680.9

0.1

Other

248.8

0.1

316.2

Other

0.2

Other

0.1

Other

577.5

800.0

363.9

382.8

Plastics
Life Industry

38.2
78.6

43.6
89.8

52.0
119.0

224.5

247.7

238.0

246.0

FY03/21(Actual)

FY03/22(Actual)

FY03/23(Actual)

FY03/24(Forecast)

37.3
66.6

Other

Notes: Inabata has adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) effectivefrom FY03/22.

Chemicals
Information &Electronics

16

Copyright © INABATA＆CO., LTD. 2023

Operating Profit by Business Segment (Full Year)No change has been made to the initial FY03/24 forecast by segment.
(Billions of yen)

25.0

20.0

20.0

15.0

10.0

5.0

0.0

14.9
5.63

20.3
Other

0.13

8.67

Other

Other

0.10

0.13

0.12
Other

21.0

10.20

10.00

Other
Plastics
Life Industry
Chemicals

2.61

1.56
1.32

2.20

6.32

6.42

FY03/21(Actual)

FY03/22(Actual)

Information &Electronics

1.93

2.65

2.77

3.05

5.26

5.20

FY03/23(Actual)

FY03/24(Forecast)

Notes: Recorded ¥0.75 billion in reversal of allowance for doubtful accounts in the Information & Electronics segment
in FY03/21.

17

Copyright © INABATA＆CO., LTD. 2023

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 aftercomprehensive 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

18Copyright © INABATA＆CO., LTD. 2023

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

36

Total return ratio

6353

48

40

40

110

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
amount707

891

679

936

425

No. of shares
Acquired

600

600

400

600

No. of sharescancelled----*1 Share buyback based on Board resolution*2 Amounts current as of September 30, 2023

47.1%
31.9%

NC2020Treasury
Shares*1120

115

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）

19

Copyright © INABATA＆CO., LTD. 2023

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

Overseas

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 consolidated
subsidiary. The Company also made Maruishi Techno, Daigo Tsusho, and IK Food Partners consolidated subsidiaries.

20Copyright © INABATA＆CO., LTD. 2023

Principle Consolidated Subsidiaries(Millions of yen)Company
Taiwan Inabata
Sangyo Co., Ltd.
Inabata Sangyo(H.K.) Ltd.
Inabata Singapore(Pte.) Ltd.

Location

1H FY03/23
Net sales

1H FY03/24

YoY changeNetNet
OperatingOperatingOperating
Net sales
Net sales
profitprofitprofitincomeincomeNet
incomeTaiwan15,624

231

138 17,499

411

264

HongKong

40,448467

896 34,164563

784 -15.5% 20.6% -12.5%

Singapore 40,026

718

1,112 29,482

471

781 -26.3% -34.4% -29.7%

12.0% 78.2% 90.4%

Inabata Thai Co., Ltd. Thailand

25,632440391 23,781

416

379

-7.2%

Shanghai Inabata
Trading Co., Ltd.

Shanghai

37,971

824

516 34,548

560

572

-9.0% -31.9% 10.8%

PT. Inabata Indonesia Indonesia

19,733849

638 16,240

896

661 -17.7%

5.5%

3.6%

Inabata Fine Tech &Co., Ltd.

10,652322

212

3322273.1%

6.8%

Japan9,930

-6.8%

-5.6%

Note: Results for 1H FY03/23 have been converted at the exchange rate for 1H FY03/24 (USD1=JPY141.06).

3.1%

21Copyright © INABATA＆CO., LTD. 2023

(Reference) Equity Capital(Billionsof yen)

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

200150Retained earnings
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

173.8

174.9

179.4
17.1
12.8

26.6
10.8

106.1 Deferred

116.7

130.5

134.6140.2

17.1

16.5

11.7
22.6

4.5
39.3

145.9
1.4
26.1

10050

0

gains orlosses onhedges:0.1
Treasuryshares:-4.1

Remeasurementsof defined benefit
plans:

-50

194.6

-1.0

FY03/20

Deferred
gains orlosses onhedges:0.1
Treasuryshares:-4.1

16.4

Remeasurementsof defined benefit
plans:

0.5

FY03/21

Deferred
gains orlosses onhedges:0.3
Treasuryshares:-7.3

16.0

Remeasurementsof defined benefit
plans:

0.5

FY03/22

Deferred
gains orlosses onhedges:0.3
Treasuryshares:-2.2

16.5

Remeasurementsof defined benefit
plans:

0.5

FY03/23

Deferredgains orlosses onhedges:
0.6
Treasuryshares:-0.9

Remeasurementsof defined benefit
plans:

0.5

End-Sep2023

22Copyright © INABATA＆CO., LTD. 2023

(Reference) Impact of Exchange Rate Fluctuations on theForeign Currency Translation Adjustment(Yen)

USD/JPY

CNY/JPY

150.00135.50100.00108.70106.10141.06112.39

50.00

0.00

15.55

15.68

17.51

19.75

FY03/20

FY03/21

FY03/22

FY03/2319.75

Q2 FY03/24
23

Copyright © INABATA＆CO., LTD. 2023

 IR InquiriesIR 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.