IR Briefing For 1Q
Fiscal Year Ending March 2021

October 2020
Inabata & Co., Ltd.

Contents
P.3- Management Philosophy and Long-Term Vision
P.5- Sales and Operating Profit Trends
P.7- Medium-Term Management Plan NC2020
Year 3 Progress (FY3/2020)
P.19- Returning Profits to Shareholders
P.22- Corporate Governance

P.30- Summary of Financial Results for 1Q FY3/2021
and Full-Year Outlook
P.40- Reference* In this document, Net income = Net income attributable to owners of parent

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Management Philosophy and Long-Term Vision◆IK Vision 2030 was drawn up in May 2017, prior to NC2020.
Love (ai) and Respect (kei)Mission People come first, based on the spirit of "love ( ai )" and " respect ( kei )," andtogether we strive towards contributing to the development of society.

VisionTo continually evolve, serving clients and society, through global
operations and meeting their changing needs.

IK values

IK Values
Ethics, aspiration, organization, role, symbiosis

IK Vision 2030
IK Vision 2030 (envisioning ourselves 10 to 15 years in the future)

Medium-term management plan
NC2020 (targets for FY03/21)

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IK Vision 2030, Our Long-Term Vision◆Inabata’s aspirations for itself in around 2030
Function: Further enhancing multifaceted capabilities (such as
manufacturing, logistics, and finance) in addition to trading

Scale:

Reach consolidated net sales of ¥1 trillion at an early stage

Overseas business: 70% or more
Portfolio: At least one-third of business from segments other thanInformation & Electronics and Plastics

Formulated May 2017

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Net Sales and Operating Profit(Operating profit: Billions of yen)

(Net sales: Billions of yen)

1,200.0

35.0(IK Vision 2030)
FY03/21(Forecast)

1,000.0

Net sales

1,000.0 30.0

Net sales 550.0
Op. profit 9.5

Operating profit(Mediumterm target)

800.0

25.0

730.0

20.0

634.7
600.3
621.1

600.0

577.0 586.6

561.1
466.0

500.0
442.7

469.0

479.9

400.0

572.1
11.3

10.9
288.9
7.6

7.9

15.5

14.0

15.0

13.2

12.6

10.0

10.7

7.6

7.7
7.6

200.0

5.0

5.9

2.6

3.5

0.0

0.0

NC2020(Around 2030)

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Overseas Sales and Operating Profit(Net sales: Billions of yen)

(Operating profit: Billions of yen)800

Net sales

600

Operating profit(IK Vision 2030)

18

Operating profit grew by six times over 17 years

10

400

7.3 6.9
6.1
3.3

200
1.2

1.6

3.6

4.2

3.5

2.3

4.9

3.7

72.4

84.1

0

119.9

107.1

110.2

104.2

150.5

170.9

159.3

152.2

5.8

6

316.3
312.9 327.7

1.6 2.0

185.0

5.1

3.9

340.6

305.4
284.3

JPY
per
USD

14

186.5

186.7

2

294.0

211.6

(0.7)

-2

118.0 119.1

114.1

91.0

92.1

81.4

77.7

79.8

100.1

109.7

120.1 108.3

110.8

110.9

108.7

(Around 2030)

NC20206
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Medium-Term Management Plan NC2020
Quantitative Targets
Four-year medium-term management plan with FY 3/2021 as its final fiscal year
Quantitative Targets

FY3/2021

Sales

730 billion JPY

Op. Income

15.5 billion JPY

Current Profit

16.0 billion JPY

Net Income

12.0 billion JPY

Net D/E Ratio

0.4X or less

Assumed Exchange Rate(*) Net D/E Ratio = (Int. Bearing Debt – Cash & Deposits) / Equity Capital(*)

USD1=110 JPY
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Medium-Term
Management
Plan NC2020 重点施策
– Key Initiatives
中期経営計画ＮＣ２０２０１

Further broadening and deepening of businessoutside Japan

２

Focus on markets with growth potential and sectorsthat have yet to be developed

・ Continual development of the automotive, life science & medical, and environment & energy sectors
・ Launching new initiatives in the food business, including in the field of agriculture・３

Further enhancement of information infrastructure essential for
global management

・ Setting priority on what is best as a group
・ Further enhancement of global business management and standardization

４

Stepping up investments to expand trading business・ Making minority investments primarily to expand trading business・ Considering majority investments but with limited risk and scale

５

Continual review of assets and enhancement offinancial standing

６

Establishing global human resources management
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Overview of Year 3 of NC2020 (FY03/20)◼

Net sales fell short of projection◼

Operating profit also came in below projection due to the shortfall in net sales, but we were able to secure
operating profit margin in line with projection◼

Our net debt/equity ratio continued to improve, and our financial strength grew(Billions of yen)

FY03/20
actual(A)

NC2020 target for
FY03/20(B)

Difference(A)-(B)

Achievement
rate(A)/(B)%Primary reasons for differences

600.3

700.0

-99.6

85.8% Explained on following slides

13.2

14.5

-1.2

91.2% Explained on following slides

2.2％

2.1％

+0.1％

Ordinary profit

14.2

15.0

-0.7

in dividend income and a
94.7％ Increase
decrease in interest expenses

Profit attributable toowners of parent

11.4

11.0

+0.4

103.8% securities

Net debt/equity ratio

0.16

0.4x or less

45.2%

－

－

－

USD1=¥108.70

USD1=¥110.00

Net sales
Operating profit
Operating profit margin

Equity ratio
Exchange rate

Higher gain on sales of investment

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Impact of the Novel Coronavirus Pandemic on Operations
in FY03/20◼ The virus had almost no impact on the Information & Electronics and Chemicals segments. However, it led toreduced demand that had a negative impact on the Life Industry and Plastics segments.
Segment
Information &Electronics

Business field
1. LCD-related business2. Office automation (OA)related businessPrimary impact during FY03/20
1. (no impact) The front-end processes of panel manufacturers escaped impact from the virus
and operations continued at high capacity rates.
2. (no impact)

Chemicals

All fields in general(-) The virus had no major impact overall, but falloff concentrated in China during February andMarch brought down full-year sales slightly.

Life Industry

1. Life sciencerelated business1. (-) Operations were affected by plant shutdowns at suppliers in China.

2. Food-related business

Plastics

1. Commodity resins

2. Functional resins(OA-related business)
3. High- performance resins(automotiverelated business)

2. (-) Japan: Sales of fishery products fell, including sales of sliced fresh fish for conveyor-beltsushi restaurants, cut fish for food service establishments, and shrimp products
for restaurants.
(-) Overseas: Sales of seafood soft-shell crab and other fishery products for restaurants
declined.
1. (+) Sales of food containers and containers for liquid sanitizers were favorable.
(-) Sales of synthetic rubber for use in automobiles declined.
(-) Construction delays brought down sales related to construction materials, civilengineering works, and electric cables.
2. (-) Sales of cladding for Japanese client companies in Asia fell.

3. (-) China: Sales to both Japanese and non-Japanese client companies decreased.
Overall, we encountered no major sales interruptions to Tier 1 or Tier 2 companies
through March 31.

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NC2020 Progress by Segment: (1) Information & Electronics◼

Sales fell below projection, but operating profit achieved forecast level and was on par with target for the final fiscal year of NC2020(Billions of yen）

FY03/20
actual(A)

NC2020target for
FY03/20(B)

Difference(A)-(B)

Achievement
rate（A)/(B)Primary reasons for differences(+) Growth in liquid crystal-related sales(-) Decision to forgo less profitable businesses (OA-related
business)(-) Business restructuring at European subsidiaries (solar cells)

Sales

218.6

250.0

-31.3

87.5%

Operating profit

4.48

4.20

+0.28

106.7% (+) Growth in liquid crystal-related materials

Operating profit margin

2.0％

1.7％

+0.3％

300.0

6.00

Sales

(Billions of yen)(Billions of yen)

218.6

250.0

261.0
2.00

Products Factored into NC2020
at the Time of its Formulation
Products as an earnings base

4.00

200.0

100.0

Operating profit

4.48

4.20

4.40

Parts and materials for liquid crystal
displays
OA-related products
Products in growth areas

0.0

FY03/20 FY03/20(Actual) (Target)

FY03/21(Goal)

0.00

FY03/20 FY03/20(Actual) (Target)

FY03/21

Secondary cell-related products(Solar cells, lithium-ion cells)(Goal)

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(Including the Former
Housing & Eco Materials)

NC2020 Progress by Segment: (2) Chemicals◼ Sales and profit fell short of targets due to stagnation in the former Housing & Eco Materials segment
FY03/
20
actual(A)(Billions of yen）

NC2020target for
FY03/20
(B)

74.1

Sales

Difference(A)-(B)

Achievement
rate（A)/(B)

-17.5

80.9%

(-) Sales fell short of targets
60.4% (+) Growth in heat-dissipating materials forautomobiles

91.7

Operating profit

1.20

2.00

-0.79

Operating profit margin

1.6％

2.2％

-0.6％

Primary reasons for differences(-) Stagnation in the former Housing & Eco Materials
segment (overseas sales of construction materials)(-) Generally sluggish in the Chemicals segment(Billions of yen)(Billions of yen)

100.0

3.00

Sales

Operating profit

Products Factored into NC2020
at the Time of its Formulation
Products as an earnings base

2.00
50.0
74.1

91.7

Materials for automotive parts, coatingrelated products, housing materials

95.7
2.00

1.00

2.20

1.20
0.0

FY03/20 FY03/20

FY03/21(actual)(goal)(target)0.00

FY03/20 FY03/20

FY03/21(actual) (target)(goal)

Products in growth areas
New products, including heatdissipating materials; housing materials(sold overseas); and environmental
materials

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NC2020 Progress by Segment: (3) Life Industry◼ Both sales and profit came in below targets due in part to delays to new food-related projects(Billions of yen）

FY03/20
actual(A)

NC2020target for
FY03/20(B)

Difference(A)-(B)

Achievement
Rate(A)/(B)

36.9

59.0

-22.0

(-) Transactions volume in China fell due to environmental
regulations
62.6% (-) Slumping sales of materials for insect repellent and pesticide(-) Delays to new food-related projects (related to agriculture
and food processing)

1.16

2.50

-1.33

46.6% (-) Sales were below forecast

3.2％

4.2％

-1.0％

Sales

Operating profit
Operating profit margin

80.0

3.00

Sales

(Billions of yen)

40.0

59.0

Operating profit(Billions of yen)

Products Factored into NC2020
at the Time of its Formulation

2.00

Products as an earnings base

2.50

65.0

2.80

1.00

36.9
0.0

Primary reasons for differences

1.16

FY03/20 FY03/20

FY03/21(actual)(goal)(target)0.00• Pharmaceutical ingredients (new drugs)• Materials for home products• Fishery products (for conveyor-belt sushi
restaurants)
Products in growth sectors

FY03/20 FY03/20

FY03/21(actual) (target)(goal)

Devices and materials related to advanced
medicine (regenerative medicine) andagricultural products (blueberries, etc.)

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NC2020 Progress by Segment: (4) Plastics◼

Sales fell below projection, but operating profit achieved forecast level and was on par with target for the final fiscal year of NC2020(Billions of yen）

FY03/20
actual
(A)
270.3

Sales

NC2020target for
FY03/20 (B)Difference(A)-(B)

299.0

-28.6

90.4%

(+) Higher sales of high-performance plastics for use inautomobiles
111.3%(+) Overall increase in profit margin(-) Sales came in below forecast

Operating profit

6.23

5.60

+0.63

Operating profit
margin

2.3％

1.9％

+0.4％

400.0
(Billions of yen)

8.00

Sales

(Billions of yen)

Achievement
Rate(A)/(B)Primary reasons for differences(-) Drop in plastics prices(-) Impact from the novel coronavirus pandemic

Operating profit

300.0

Products Factored into NC2020
at the Time of its Formulation
Products as an earnings base

4.00

200.0
270.3 299.0

6.23

308.0

5.60

5.90

100.0

Plastics for OA equipment and consumer
electronics
Films and sheets (for food products),
including manufacturing and processing
Products in growth areas

0.0

FY03/20 FY03/20

FY03/21(actual) ( target)(goal)

0.00

FY03/20 FY03/20

FY03/21(actual) ( target)(goal)

High-performance resins for use inautomobiles, sports-related products (grip
tape)

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NC2020: Qualitative Assessment of Third-Year Progressin Priority Areas◼ Focus on markets with growth potential and sectors that have yet to
be developed
Priority areas
Automotive

Life science and medical

Environment and energy

Food, including agriculture(Agricultural field)

Comments

Assessment

Sales of high-performance resins to global customers grew despite impact
from the novel coronavirus pandemic.
Meanwhile, the company recorded growth in sales of heat-dissipating
materials for electric vehicles and strong sales related to decorative films.

◎

Sales of pharmaceutical ingredients fell below projection due in part toenvironmental regulations in China and the spread of the novel coronavirus.
Meanwhile, sales of growth media, devices, and other products in the field ofadvanced medicine were delayed, and sales of home products such as insect
repellent and pesticide materials struggled.

×

We have revised our forecast for solar cell sales due suspensions of relatedtransactions in Europe.
We recorded growth in system-related projects in Japan and material sales.
Despite slight delays to lithium-ion cell-related sales, we experienced growthin terms of associated material sales to Chinese and South Korean
manufacturers.
Cultivation of blueberries and garlic in Hokkaido took more time than
expected, but crop growth was strong nevertheless.
Sales of imported grass and other types of animal feed were robust.

△

△
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NC2020 Investment Status
More proactive investment to expand the trading business(Billions of yen)

FY03/18
actualFY03/19
actualFY03/20
actual

NC2020 period(FY03/18
onward)Growthinvestment

3.86

2.31

1.85

8.03

Fixed
investment

1.59

2.03

2.01

5.63

Total

5.45

4.34

3.86

13.66

◼ Major growth investments in FY03/20• Information & Electronics segment:
Start-up loans ¥0.50 billion (related to mask blanks)• Plastics segment:
Plant relocation loans ¥0.54 billion (related to specialty paper)¥0.17 billion for facilities (related to inflation molding)• Life industry segment:•
Share acquisition¥0.15 billion (related to pharmaceuticals)¥0.10 billion in investment (related to regenerative medicine)

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Sales by Segment under NC2020(Billions of yen)

Information & Electronics

ChemicalsLife Industry

1,200

Plastics

Housing & Eco Materials

Other

IK Vision 2030

(IK Vision 2030)

1,000.0

1,000

New Challenge 2016

NC2020FY03/21(Forecast)

Net sales 550.0
800

730.0

0.3

600

572.1
24.2 0.5

634.7
621.1
586.6
577.0
0.1 24.1 0.1
25.1
0.1
24.8 0.1 25.0
251.1

251.8

286.9

400

250.4

34.6
52.8

41.0
48.1

40.4
48.0

42.3
51.5

39.0
53.4

36.9
74.1

209.3

211.6

221.0

214.9

217.9

218.6

261.0

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21(actual)(actual)(actual)(actual)(actual)(actual)

200

300.0

600.3
0.1 308.0
270.3
65.0
95.7

0

Note: In FY03/20, the Housing & Eco Materials segment was combined with the Chemicals segment.

Future(medium-term target) (around 2025–2030)

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Operating Profit by Segment under NC2020(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

Housing & Eco Materials

Other

27.5

230～240

IK Vision 2030

(IK Vision 2030)
22.5

New Challenge 2016

NC2020FY03/21(Forecast)

Op. profit 9.5

17.5

12.5

7.5

2.5

-2.5

Operatingprofitmargin14.0
0.10 13.2
0.04
0.13

12.6
0.14
11.3
10.7
0.26
0.14
6.34
0.28 0.15 0.42
5.9
5.39
4.43
3.73
0.12
0.15
1.31
1.03
1.82
1.52
1.37
1.07
5.54
1.00
1.01
4.81
4.48
3.99
3.83
1.92
0.25 (2.04)

15.5

0.20

5.90

6.23

2.80
1.16
1.20

2.20

4.48

4.40
FY03/21

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20(actual)(actual)(actual)(actual)(actual)(actual) (medium-term target) (around 2025–2030)

1.9%

2.0%

2.2%

1. 0%

2.2%

2.2%

Note: In FY03/20, the Housing & Eco Materials segment was combined with the Chemicals segment.

Future2.1%

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Returning Profits to Shareholders (1)Policy on returning profits to shareholders
We target a total return ratio* of approx. 30–35%.

【 Treasury stock 】●Retirement of treasury shares ●Acquisition of Treasury shares(August 2014)（Details for FY 3/2020）

No. of Shares Retired: 1,660,000

No. of Shares Acquired: 300,000
Value of Shares Acquired: 425 million JPY
Acquisition Period:10th Feb.-19th Mar. 2020

(equivalent to 2.55% of the total no. ofshares issued and outstanding prior to
retirement)* Total return ratio (%) = (dividend amount + amount of treasury shares acquired) / consolidated net income x 100

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Earnings per Share

(Yen)
240

211.36200

188.82160

151.91137.01

120

156.25141.20137.20109.92104.29

80

40

0

(604)

(439)

(707)

(891)

(679)

(936)

(425)

FY03/13

FY03/14

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21（actual）（actual）（actual）（actual）（actual）（actual）（actual）（actual）（forecast）

Note: Figures in parentheses at the bottom of the bar graph indicate own-share purchases conducted during the20
year (in millions of yen).
Copyright © INABATA＆CO., LTD. 2020

Returning Profits to Shareholders (2)Annual dividends per share and indicators of shareholder return
(Yen)
60

Dividend

Dividend payout ratio

Total return ratio

80.0%

53

53

48
40

30

33

36

40

Approx.
30–35%
target

46.5%
34.8%

30.0%

31.9%

23

31.1%

22.1%

24.1%

23.7%

25.6%

(604)

(707)

(891)

(679)

(936)

(425)

31.1%

21.9%

(439)

40.0%

37.5%

36.4%

20

0

60.0%

40

28.1%

20.0%

22.7%

0.0%

FY03/13

FY03/14

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21(actual)(actual)(actual)(actual)(actual)(actual)(actual)(actual)(forecast)

Note: The figures in parentheses at the bottom of the bar chart show the amount of treasury stock acquired (in millions of yen) during the period.

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◼ Corporate Governance22
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Corporate Governance (1)・3 outside directors (of 10 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.

Outside Directors
・Toshiyuki Kanisawa*
Former Representative Director andExecutive Vice President -Tokyo Gas Co., Ltd.

・Kiyoshi Sato*
Former President and CEO - Tokyo Electron Ltd.
Current Director (Outside) – Shibaura Machine Co., Ltd.
Current Director (Outside) – Mazda Motor Corporation

・Kenji Hamashima*
Former President Chief Executive Officer – Ushio INC.
(*) Mr. Kanisawa, Mr. Sato, and Mr. Hamashima are registered as independent, outside officers with the TSE.

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Corporate Governance (2)The following initiatives were implemented to enhance governance

1. Established the Nominating and Remuneration
Committee (voluntary) (FY3/2016)
Ensures objectivity, fairness and transparency with respect to the appointment
and dismissal of senior management, nomination of candidates for directors,
Audit & Supervisory Board members, and executive officers, and determinationof director remuneration• Current membership: 1 internal director (chairperson) and 3 independent
outside directors• Held five times during FY 3/2020

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Corporate Governance (3)2. Evaluating the board of directors
Objective - To enhance corporate value by increasing the effectiveness andtransparency of the board of directors

FY03/18
Conducted third-party evaluation of all directors and Audit & Supervisory Board
members using surveys and individual interviews

FY03/19, FY03/20
Performed a self-evaluation using a survey format⇒ In April 2020, disclosed summary of evaluation and measures going forward

FY03/21
Plan to conduct third-party evaluation every three years

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Corporate Governance (4)2. Evaluating the board of directors
FY03/2020（self-evaluation）

Summary of evaluation

・ Composition and operation of Board of Directors received high marks.
・ Open and lively discussions were confirmed.
・ Outside officers (directors and auditors) made contributions.
・ The composition, role, and operation of the Nominating and Remuneration Committee
were appropriate.

＝Outstanding issues and required measures＝・ Need to further deepen discussion related to medium- to long-term issues.
・ Further room to consider succession plan for outside officers.
・ Need to further examine issues related to sustainability and promotion of diversity.
・ The following three areas are reasonably adequate, but need to be further reinforced: (1) risk
management, (2) communication among outside directors and auditors, and (3) disseminationof information to capital markets.
⇒ We plan to continue addressing the issues above.
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Corporate Governance (5)3. Officer Remuneration
Remuneration of Directors*■Cash remuneration

・Fixed remuneration
・Performance-based remuneration: Determined based on profit before income taxes(excluding gains on the sale of a portion of strategically held shares)■ Performance-based stock remuneration
・Board Benefit Trust (BBT)(Introduced in June 2018 to enhance motivation to contribute to medium- to long-term
expansion in corporate value)

Ratio of performance-based remuneration to fixed remuneration in FY03/2020
Performance-based remuneration
41.3％*Excludes Directors who are not Executive Directors, etc.

Fixed remuneration
58.7％
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Corporate Governance (6)4. Strategically Held Shares
Policy on retention and reduction
・ Our decisions to retain or dispose of strategically held shares are based on whether or
not they contribute to collaborative relationships, increase corporate value over the
medium to long term, or lead to shareholder benefit.
・ Each year, the Board of Directors considers the capital cost of each individual stock in acomprehensive investigation into the suitability of our strategically held shares.
・ We cut back on shares that are not deemed to be strategically significant, paying due
consideration to timing, as well as market and business impacts.

Sales of other securities
FY3/16
FY3/17
FY3/18
FY3/19FY3/20¥1,421 million¥5,150 million¥9,106 million¥5,395 million¥3,134 million
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Human Resource Development
Our strengths lie in our human resources and information
Regarding the development of human resources, our most important assets
Initiatives to further enhance on-site capabilities, our forte・Fostering global talent, e.g., through Global Staff Meetings andCorporate Philosophy Immersion Workshops(at 36 locations in 14 countries, more than 700 local staff
members participated.)
・Initiatives aimed at promoting diversity
・Basic training for trading company personnel
・Training for overseas bases(People)Number of overseas personnel in the trading division andpeople on overseas assignment

1,000

Trading division

628

663

【President Mr. Inabata】

People on overseas assignment

693

737

764

783

500

90
0

93

95

94

90

93

End-FY03/15 End-FY03/16 End-FY03/17 End-FY03/18 End-FY03/19 End-FY03/20

Note: The number of people on overseas assignment is as of the first day of the following month.

【Global Staff Meeting】

29
Copyright © INABATA＆CO., LTD. 2020

Summary of Financial Results for
1Q FY3/2021 and Full-Year Outlook

30
Copyright © INABATA＆CO., LTD. 2020

Consolidated Results Review－1Q FY3/2021
Net sales:¥128.7 billion-16.1% YoY

Net sales were down due to the impact of the novel coronavirus outbreak.

Operating profit:¥2.2 billion- 36.5% YoY

Operating profit declined on lower net sales.

Ordinary profit:¥3.0 billion-29.8% YoY

Ordinary profit fell due to the decline in operating profit.
ProfitProfitattributable
attributabletotoownersownersof
ofparent:parent:¥2.0 billion-33.9% YoYProfit attributable to owners of parent fell on lower ordinary profit.
31
Copyright © INABATA＆CO., LTD. 2020

Consolidated Results Review －1Q FY3/2021(Billions of yen)
YoY change
Q1 FY3/20

Q1 FY3/21 (A)Amount%Forecast announced
Achievement rate
Aug. 6, 2020
（A)/(B)
(B)

153.4

128.7

-24.7

-16.1%

550.0

23.4%

Operating profit

3.5

2.2

-1.2

-36.5%

9.5

23.4%

Ordinary profit

4.3

3.0

-1.3

-29.8%

10.0

30.7%

Profit attributable toowners of parent

3.0

2.0

-1.0

-33.9%

8.5

23.8%

109.90107.63-2.27

Net sales

Exchange rate (USD/JPY)

107.0032
Copyright © INABATA＆CO., LTD. 2020

Impact of the Novel Coronavirus Outbreak✓Assumptions underlying the business outlook
The impact of the novel coronavirus outbreak varies by the country where
the Company operates. While the outbreak is expected to have a lingering
impact throughout the rest of the fiscal year, the Company assumes that
global and Japanese economic environments will gradually recover throughthe end of FY03/21, rather than experiencing another sharp drop in economic
activity as in Q1.

✓Business segments and areas significantly affected by theoutbreakBusiness segment: Plastics, Chemicals
Area：Automobile, among others
Region：Southeast Asia

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Copyright © INABATA＆CO., LTD. 2020

Sales Trends
Net sales(Billions of yen)

1Q

800.0
8,000

Full year
Full-year forecast

586.6

6,000
600.0

621.1

634.7

600.3

(as announced on Aug. 6,
2020)

550.0
% Achieved

400.0
4,000

200.0
2,000

23.4％
141.4

148.7

158.2

153.4

128.7

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/19FY3/20FY3/210(Reference)
FY3/17
Exchange
1Q
r ate:
USD/JPY Full year

108.04108.34

FY3/18111.09110.85109.10110.92109.90108.70( * N o te )107.63107.00Note: Estimation at time of release34

Copyright © INABATA＆CO., LTD. 2020

Operating Profit Trends

Operating profit(Millions of yen)

1Q

16,000

Full year

14,031
12,616

13,229Full-year forecast(as announced on Aug. 6,
2020)

12,000

9,500
8,000

4,000

% Achieved

5,962
3,109

23.4％

3,488

3,507

2,235

2,227

0

FY3/17

FY3/18

FY3/19*Recorded allowance for doubtful accounts at a European subsidiary in FY3/18
1Q: ¥900 million; Full year: ¥6.65 billion

FY3/20FY3/2135
Copyright © INABATA＆CO., LTD. 2020

Ordinary Profit Trends
Ordinary profit(Millions of yen)

1Q

16,000

Full year

14,30913,672

14,211
Full-year forecast(as announced on Aug. 6,
2020)

12,00010,000% Achieved

8,000

4,000

6,374

3,789

2,836

30.7％
3,795

4,377
3,072

0

FY3/17

FY3/18

FY3/19FY3/20FY3/2136
Copyright © INABATA＆CO., LTD. 2020

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

15,000

1Q

Full year

12,896
11,415

10,0009,687

Full-year forecast(as announced on Aug. 6,
2020)

8,500
6,744

% Achieved

23.8％

5,000

2,515

2,938

3,700

3,054

2,020

0
FY3/17

FY3/18

FY3/19FY3/20FY3/2137
Copyright © INABATA＆CO., LTD. 2020

Sales Forecast by Business Segment(Billions of yen)

800.0

634.7

621.1
600.0

Other

Other

0.1

0.1

600.3
Other

0.1

550.0
Other

Other

0.1

286.9

300.0

270.3

400.0

200.0

Plastics

238.0Life Industry

42.3
76.7

39.0
77.5

36.9
74.1

42.0
61.9

214.9

217.9

218.6

208.0

FY03/18

FY03/19

FY03/20

FY03/21(Actual)(Actual)(Actual)(Forecast)Chemicals
Information &Electronics

0.0

Note: Effective FY03/20, the Housing & Eco Materials segment was combined with the Chemicals segment.
38
Results for fiscal years up to and including FY03/19 have been retroactively adjusted to reflect this change. Copyright © INABATA＆CO., LTD. 2020

Operating Profit Forecast by Business Segment(Billions of yen)

14.0

15

Other

0.13

13.2
Other

0.13

10

6.34

5.9 Other

6.23

5

0

5.54
1.92
0.41
(2.04)
FY03/18(Actual)

-5

9.5
Other

2.90

0.12

1.31
1.42

Other

0.10

Plastics
Life Industry

1.16
1.20

1.60
0.70

4.81

4.48

4.20

FY03/19(Actual)

FY03/20(Actual)

FY03/21(Forecast)Chemicals
Information &Electronics

Notes: In FY03/18, we posted an allowance for doubtful accounts in relation to a European subsidiary, of ¥5.90 billion in the Information& Electronics segment and ¥0.75 billion in the Chemicals segment.
39
The Housing & Eco Materials segment was combined with the Chemicals segment in FY03/20.
Results for fiscal years up to and including FY03/19 have been retroactively adjusted to reflect this change. Copyright © INABATA＆CO., LTD. 2020

Reference

40
Copyright © INABATA＆CO., LTD. 2020

Summary of the Company
About Inabata:
1. Founded in 1890
Founded in Kyoto in 1890 as Inabata Senryoten – animporter of dyestuffs
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 in 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
41
Copyright © INABATA＆CO., LTD. 2020

Summary of the Company
3. 4 Business Segments
Operating in 4 segments:Information & Electronics, Chemicals,Life Industry and Plastics
Life
Industry

6%
Chemicals

12%
FY 3/20

Materials for pharmaceuticals andhousehold products, agriculturaland marine products

Sales
600.3 billion
JPY

Plastics
45%

Plastic materials, compounds,various film and sheet products

Information& Electronics

37%
Resin and rubber materials,
materials and additives for paints,
inks, adhesives
Lumber, laminated timber,housing equipment
Note: The Housing & Eco Materials segment was combined with the Chemicals segment in FY03/20.

LCD components, inkjet and toner
materials, LED materials

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Copyright © INABATA＆CO., LTD. 2020

Regional Business Development
Operating in Japan and at about 60 locations in 17 countries

Inabata Group Sales by region
Japan
47.3％

25 bases of operation in 8
countries, including Singapore
and Thailand

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

Northeast
Asia

Southeast
Asia

22.4％

FY 3/20 Sales

25.3％

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

Europe1.3％(NB) No. of overseas countries and operation bases as of 1 July 2020
(NB) No. of operation bases includes affiliates

The
Americas

3.7%

9 bases of operationin 4 countries,
including USA &Mexico43
Copyright © INABATA＆CO., LTD. 2020

Inabata’s Wide Range of Capabilities
Highly specialized people
empowered with cutting-edge information

44
Copyright © INABATA＆CO., LTD. 2020

Inabata’s Strengths [Manufacturing and Processing]Our strategy involves expanding our trading business by swiftly grasping with information
regarding the development of new products and market trends by drawing on our worldwide
processing bases and trading company offices.
Plastics compounds: Formed by adding flame
retardants and other additives to raw plastic

Compounding
facility

Plastics
manufacturer
Proposal

Information

Collaboration

Component
manufacturer
Information

Product
manufacturer
ProposalInquiries on plastics andcoating materials

Information onmaterials

Tradingcompany office

Expanding trading businessby leveraging ourmanufacturing capabilities
Trading company capabilities

45
Copyright © INABATA＆CO., LTD. 2020

Inabata’s Strengths [Plastic Compounding Facilities]
China

Plastics Compound
Business Office

12,600 MT/Y

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

Vietnam
42,000 MT/Y

Philippines

Thailand
38,400 MT/Y

10,800 MT/Y
Building and dismantling of plants in line with customers’ relocation strategy
Providing consistent quality of service, anywhere.

Malaysia
27,600 MT/Y
Indonesia
37,200 MT/Y
183,600 MT/Y: 7 sites in 7 countries (as of July 1, 2020)

Mexico15,000 MT/Y
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Copyright © INABATA＆CO., LTD. 2020

Overseas Sales (including exports from Japan)
The Americas
19.5 billion
5.4%

Europe7.5 billion
2.1%
(JPY)

Northeast Asia
195.5 billion
53.9%

FY 3/20
Overseas Sales
362.7 billion

Southeast Asia
140.1 billion
38.6%(60.4% of consolidated net sales)

Southeast Asia
Northeast Asia
The Americas
Europe47
Copyright © INABATA＆CO., LTD. 2020

Equity Capital, Net Interest-Bearing Debt, Net Debt/Equity Ratio
Equity capital

Net interest-bearing debt

Net debt/equity ratio(Billions of yen)(Times)

200

0.80

162.9
150

146.2

150.9

145.9

141.4

0.60

100

0.40

0.30
50

43.7

0.28
39.4

0.19
30.3

0.16
23.4

0.16

0.20

24.5

0

0.00

End-FY03/17

End-FY03/18

End-FY03/19

End-FY03/20 End-June 2020

Notes: Equity capital = Net assets – stock acquisition rights – non-controlling interests
Net debt/equity ratio = (Interest-bearing debt – cash and deposits) / equity capital48
Copyright © INABATA＆CO., LTD. 2020

Trends in Cash Flow(billions of yen)
Operating CF
Real Operating CF*
Investment CF

20
10
0

FY 3/09

FY 3/10FY 3/11

FY 3/12FY 3/13

FY 3/14

FY 3/15FY 3/16

FY 3/17

FY 3/18

FY 3/19

FY 3/20-10-20(millions of yen)
Operating CF
Change in WC
Real Operating CF*
Investment CF

FY 3/09 FY 3/10 FY 3/11 FY 3/12 FY 3/13 FY 3/14 FY 3/15 FY 3/16 FY 3/17 FY 3/18 FY 3/19 FY 3/20
11,562
5,976
8,495 -15,534
19,400-764
8,354
11,8661,840
5,960
12,51010,69019,700-968-3,748 -20,357
3,414 -15,244 -11,179
5,821-9,367-2,2497,071
70-8,138
6,944
12,243
4,823
15,986
14,48019,533
6,045
11,207
8,209
5,439
10,620947-5,529-1,436-1,629277-5,467-3,044
-161
4,504
5,086
743
-525

* Cash flows associated with operating activities – Cash flows associated with change in working capital
Working capital = Trade receivables + Inventory – Trade payables

49
Copyright © INABATA＆CO., LTD. 2020



Trends in Share Price

Inabata’s Share Price for the past 10 years
JPY/share

50
Copyright © INABATA＆CO., LTD. 2020



Trends in Share Price

Inabata’s share price performance vs. TOPIX for the past 10 years(09/2011=100)

Continuing strong yen

The Great East Japan Earthquake (March)

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

51
Copyright © INABATA＆CO., LTD. 2020 IR queries should be directed to:
IR Department
Financial Management Office

Inabata & Co., Ltd.
E-mail inabata-ir@inabata.com (Contact:Ms. Ryoko Mitsui) 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.
52
Copyright © INABATA＆CO., LTD. 2020