Translation
Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

August 8, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Based on Japanese GAAP)
Company name:Inabata & Co., Ltd.
Stock exchange listing: Tokyo
Stock code:
Representative:

8098
URL https://www.inabata.co.jp/english/
Director, President
Katsutaro Inabata

Inquiries:

Executive Officer,
General Manager, Financial Management

Koichi Noda

OfficeScheduled date to commence dividend payments:–

Preparation of supplementary material on financial results:
Holding of financial results meeting:Yes
No

TEL 050-3684-4011(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended June 30, 2024
Three months ended June 30, 2023
Note: Comprehensive income

Millions of yen
213,591
184,557

%
15.7
0.3

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen
%
6,825
34.6
7,254
35.7
6,369
(17.5)
5,071
(4.9)
5,346
(0.9)
7,721
69.3

For the fiscal year ended June 30, 2024: ¥15,413 million
For the fiscal year ended June 30, 2023: ¥13,910 million
Earnings per share

Three months ended June 30, 2024
Three months ended June 30, 2023

[10.8%][48.6%]

Diluted earnings per shareYen
116.10139.67Yen––(2) Consolidated financial position
Total assets
As of June 30, 2024
As of March 31, 2024
Reference: Equity
As of June 30, 2024:
As of March 31, 2024:

Net assets

Millions of yen
465,111427,320¥207,455 million¥200,166 million

Millions of yen
214,801
206,754

Equity ratio
%
44.6
46.8

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

Yen

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2024–
55.00
Fiscal year ending March 31, 2025–
Fiscal year ending March 31, 2025
60.00
(Forecast)(Note) Revisions to the forecast of cash dividends most recently announced: None

–

65.00

120.00–65.00

125.003. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
410,000
9.3
10,8003.2
10,500(1.5)
8,200 (34.6)
148.46
September 30, 2024
Full year
830,000
8.4
22,5006.2
21,5000.5
17,000 (15.0)
307.79(Note) Revisions to the consolidated earnings forecasts most recently announced: None
4. Notes(1) Significant changes in the scope of consolidation during the period:
Newly included: 4 companies (Novacel Co., Ltd. and 3 other companies)

Yes(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

55,914,127 shares As of March 31, 2024

55,914,127 shares

Number of treasury shares at the end of the period
As of June 30, 2024

1,743,389 shares As of March 31, 2024

680,789 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended June 30, 2024

54,857,463 shares Three months ended June 30, 2023

55,281,520 shares

Note: The Company has introduced the “Board Benefit Trust (BBT),” and shares of the Company held by this trust are included in thenumber of treasury shares to be deducted in the calculation of “Number of treasury shares at the end of the period” and “Average
number of shares during the period.”* Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an
audit corporation: Yes (voluntary)* Proper use of earnings forecasts, and other special matters
The above forecasts are based on information available to the Company as of the date of the announcement of this document and are notintended to be a commitment by the Company to achieve them. In addition, actual results may differ from the forecasts due to various factors
in the future. For matters concerning earnings forecasts, please refer to “(3) Explanation of consolidated earnings forecasts and other forwardlooking statements” of “1. Overview of operating results and others” on page 5 of the attached material.

Inabata & Co., Ltd. (8098)

Attached Material
Index
1. Overview of operating results and others ................................................................................................... 2(1) Overview of operating results for the period under review ................................................................. 2(2) Explanation of financial position ......................................................................................................... 5(3) Explanation of consolidated earnings forecasts and other forward-looking statements ..................... 5
2. Consolidated financial statements and significant notes thereto ................................................................ 6(1) Consolidated balance sheet .................................................................................................................. 6(2) Consolidated statement of income and consolidated statement of comprehensive income ................ 8
Consolidated statement of income ....................................................................................................... 8
Consolidated statement of comprehensive income .............................................................................. 9(3) Notes to quarterly consolidated financial statements ........................................................................ 10
Notes to Segment information, etc. .................................................................................................... 10
Notes in the case where there was a significant change in the amount of shareholders’ equity ....... 12
Notes on premise of going concern.................................................................................................... 12
Notes to quarterly consolidated statement of cash flows ................................................................... 121

Inabata & Co., Ltd. (8098)

1. Overview of operating results and others(1) Overview of operating results for the period under review
During the three months ended June 30, 2024, the global economy was generally on a recovery trend,
although there were differences by region.
In the U.S., the economy expanded as consumer spending and capital expenditure increased. In China,
there was a moderate recovery mainly in production and exports, partly due to the effects ofgovernment policies. In emerging countries of Asia, the Indian economy expanded and the Indonesian
economy picked up moderately. On the other hand, recovery stalled in Thailand. In Europe, theeconomy showed signs of recovery in both the Euro area and the U.K. mainly in the non-manufacturingsector.
In the Japanese economy, capital expenditure and production, etc. recovered moderately, andemployment conditions and corporate earnings also improved.
Under this situation, the Group’s consolidated net sales were ¥213,591 million (up 15.7% year-on-year)
due to the effect of the yen’s depreciation. As for profits, operating profit was ¥6,825 million (up 34.6%
year-on-year) and ordinary profit was ¥7,254 million (up 35.7% year-on-year). Profit attributable toowners of parent was ¥6,369 million (down 17.5% year-on-year) due to absence of gain on bargain
purchase in the three months ended June 30, 2024, which was recorded in the three months ended June30, 2023.
The average exchange rate against US dollar during the three months ended June 30, 2024 was ¥155.85(¥137.49 during the three months ended June 30, 2023).
(Millions of yen)Three months ended
June 30, 2023

Three months ended
June 30, 2024

184,557

213,591

15.7% increase

Operating profit

5,071

6,825

34.6% increase

Ordinary profit

5,346

7,254

35.7% increase

Profit attributable to owners ofparent

7,721

6,369

17.5% decrease

Net sales

Year-on-year (%)

Operating results by segment are as follows.
Information & Electronics BusinessIn the Information & Electronics Business, net sales increased due to a recovery in sales related to flat
panel displays (hereinafter, “FPDs”) and inkjet printers.
For products related to FPDs, the recovery of end-user demand was sluggish, and sales of those forlarge TVs were weak, but sales for in-vehicle electronics and products for OLEDs were robust.
For LED-related products, sales were robust, mainly for outdoor displays in China, Europe, and theU.S.
For products related to inkjet printers, sales to consumers increased as inventory adjustments werecompleted. For industrial materials, sales of related materials also increased due to strong sales for foodand beverage packaging applications, etc.
For copier-related products, sales of relevant materials increased due to the completion of inventory
adjustment of toner for office use.
For products related to solar cells, sales decreased due to intensified global price competition, mainly
affected by the spreading of inexpensive panels to Europe and other regions.
2Inabata & Co., Ltd. (8098)

For products related to secondary cells, sales decreased against a backdrop of the slowdown in global
EV sales.
For photomask-related products, sales of related materials increased both for semiconductors and for
FPDs.
For semiconductor and electronics peripheral components, demand was on a recovery trend overall andsales increased.
As a result, net sales amounted to ¥74,050 million (up 30.0% year-on-year). Segment profit (operating
profit) was ¥2,386 million (up 56.5% year-on-year).
(Millions of yen)Three months ended
June 30, 2023

Three months ended
June 30, 2024

Net sales

56,94874,05030.0% increase

Segment profit (operating profit)

1,525

2,386

56.5% increase

Year-on-year (%)

Chemicals BusinessIn the Chemicals Business, sales increased as each business generally remained strong.
For resin materials/additives, sales were at the same level as the previous year due to an increase inexport sales to overseas markets, etc., despite a decrease in sales of urethane-related products.
For materials for automotive parts, sales decreased due to discontinuation of handling some materials.
For coating/ink/adhesive area, sales remained strong in terms of both volume and unit prices.
For papermaking agents, sales increased as inventory adjustments for plain paper ran their course.
For products related to building materials, sales increased for imported lumber and apartments andcondominiums.
As a result, net sales amounted to ¥28,831 million (up 5.8% year-on-year). Segment profit (operating
profit) was ¥717 million (up 1.2% year-on-year).
(Millions of yen)

Net sales

Three months ended
June 30, 2023

Three months ended
June 30, 2024

27,257

28,831

5.8% increase

709

717

1.2% increase

Segment profit (operating profit)

Year-on-year (%)

Life Industry BusinessIn the Life Industry Business, sales increased due to strong sales of pharmaceuticals and other life
science-related products.
For life science-related products, sales increased due to strong sales of pharmaceuticals as well as
insect repellents and insecticide.
For food-related products, sales of agricultural products were weak due to sluggish sales of frozen
fruits for overseas markets.
For fishery products, sales were robust for conveyor-belt sushi restaurants and mass retailers, but salesof processed fishery products and other ingredients for Japanese cuisine in the U.S. market declined
sharply due to a drop in demand for restaurants and intensified competition, and overall sales of foodrelated products also decreased.
As a result, net sales amounted to ¥14,656 million (up 9.0% year-on-year). Segment profit (operating
profit) was ¥390 million (up 56.2% year-on-year).
3

Inabata & Co., Ltd. (8098)(Millions of yen)Three months ended
June 30, 2023

Three months ended
June 30, 2024

13,44014,656

9.0% increase

249

390

56.2% increase

Net sales
Segment profit (operating profit)

Year-on-year (%)

Plastics BusinessIn the Plastics Business, sales increased due to generally strong sales in each sector.
For products related to commodity resins, sales increased slightly due to strong sales of products forelectric wire coatings and other applications.
For products related to high-performance resins, sales of products for OA/home appliances increased as
inventory adjustments ran their course. For automotive-related products, sales to Japanese-affiliatedautomakers in China were sluggish. As for sales in Japan, Southeast Asia and the Americas, despite
having earlier performed strongly in those regions, sales are currently weakening, particularly those to
Japanese-affiliated automakers, and a production adjustment phase has begun. Sales in India,
meanwhile, were strong.
For the compound business, sales recovered on the back of a return of demand from the automotive,
OA/home appliance sectors.
Sales of polyolefin resins increased on the back of strong exports and increased inbound demand inJapan.
For film-related products, sales in the soft packaging area performed well on the back of increased
inbound demand. In addition, both volume and unit prices increased in Japan as customers worked
through inventories.
For sheet-related products, sales increased due to strong sales of sporting goods-related materials inboth Japan and overseas.
The recycling material business grew steadily.
As a result, net sales amounted to ¥96,007 million (up 10.5% year-on-year). Segment profit (operating
profit) was ¥3,295 million (up 29.1% year-on-year).
(Millions of yen)Three months ended
June 30, 2023

Three months ended
June 30, 2024

Net sales

86,86596,007

10.5% increase

Segment profit (operating profit)

2,552

3,295

29.1% increase

4Year-on-year (%)

Inabata & Co., Ltd. (8098)(2) Explanation of financial position
AssetsTotal assets as of June 30, 2024 increased by ¥37,790 million compared with March 31, 2024 (up 8.8%
from the end of the previous fiscal year) to ¥465,111 million.
The increase in current assets by ¥30,244 million was mainly due to increases in accounts receivable trade, in cash and deposits and in merchandise and finished goods.
The increase in non-current assets by ¥7,545 million was mainly due to increases in intangible assets,
in property, plant and equipment and in investment securities.
Liabilities
Total liabilities as of June 30, 2024 increased by ¥29,744 million compared with March 31, 2024 (up13.5% from the end of the previous fiscal year) to ¥250,310 million.
The increase in current liabilities by ¥19,429 million was mainly due to increases in notes and accounts
payable - trade and in short-term borrowings, despite a decrease in provision for bonuses.
The increase in non-current liabilities by ¥10,314 million was mainly due to an increase in bonds
payable.
Net assets
Total net assets as of June 30, 2024 increased by ¥8,046 million compared with March 31, 2024 (up3.9% from the end of the previous fiscal year) to ¥214,801 million. This was mainly attributable to anincrease in foreign currency translation adjustment.
As a result, the equity ratio was 44.6% (down 2.2 points from March 31, 2024).
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
There are no changes to the consolidated earnings forecasts for the six months ending September 30,
2024 and the full year ending March 31, 2025, which were announced in the Consolidated Financial
Results on May 9, 2024.

5

Inabata & Co., Ltd. (8098)

2. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of June 30, 2024

51,31031,198
175,264
78,286
1,938
4,843
11,639(475)
354,006

58,55531,817
193,00981,823
2,623
5,071
11,828(478)
384,251

18,625
3,855

20,444
7,237

34,872
9,346
12,745(6,131)
50,83373,314427,320

36,467
9,423
13,734(6,448)53,17780,859465,111Inabata & Co., Ltd. (8098)(Millions of yen)
As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of June 30, 2024

127,70242,946
2,498
1,863
14,227
189,238

140,22150,5152,426
1,360
14,144
208,667

7,500
12,38917,50012,410

42

40

262

275

2,343
8,789
31,327
220,565

2,442
8,972
41,642
250,310

9,364
7,177
144,689(904)
160,327

9,364
6,573
147,459(4,484)
158,913

10,289595
28,541
412
39,838
6,588
206,754427,320

10,957710
36,478394
48,541
7,346
214,801
465,111Inabata & Co., Ltd. (8098)(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on step acquisitions
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

8

Three months ended
June 30, 2024

184,557
167,616
16,94011,868
5,071

213,591
193,933
19,657
12,832
6,825

86
510
74

189
486
–

66

27

247
985

273
976

584
–
126
710
5,346

338
69
139
547
7,254

245
1,593
3,419
5,257

–
1,521
–
1,521

225
225
10,378
2,391
242
2,633
7,744
23
7,721

–
–
8,775
2,021
129
2,151
6,624
255
6,369

Inabata & Co., Ltd. (8098)

Consolidated statement of comprehensive income(Millions of yen)Three months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

Three months ended
June 30, 2024

7,744

6,624

(857)
260
6,738
(11)

682
115
7,999
(17)

36

10

6,165
13,9108,789
15,413

13,705

15,071

205

342

Inabata & Co., Ltd. (8098)(3) Notes to quarterly consolidated financial statements
Notes to Segment information, etc.
[Segment information]Ⅰ

Three months ended June 30, 2023
1. Information on the amounts of net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments
Information &Electronics

ChemicalsLife Industry

Net sales(1) Sales to external customers(2) Intersegment sales or transfers

56,948–27,257–

13,440–86,865–

184,511–

Total

56,94827,257

13,44086,865

184,511

1,525

709

249

2,552

5,037

Adjustments

Amountrecorded in thequarterly
consolidated
statement ofincome(Note) 2

Segment profit

Others(Note) 1

Total

Plastics

Net sales(1) Sales to external customers(2) Intersegment sales or transfers

45–

184,557–––

184,557
–

Total

45

184,557–

184,557

34

5,071

–

5,071

Segment profit

Total

Notes: 1. “Others” category represents a business segment that is not included in reportable segments, and real estateleasing business.
2. The total amount of segment profit corresponds to operating profit in the quarterly consolidated statement ofincome.

2. Information about impairment loss of non-current assets or goodwill, etc., by reportablesegment(Gain on bargain purchase)
A bargain purchase occurred in conjunction with the Company making Maruishi Chemical
Trading Co., Ltd. and its wholly-owned subsidiary Maruishi Techno Co., Ltd. into consolidated
subsidiaries of the Company through the additional acquisition of shares. The amount of gain
on bargain purchase recorded due to this event was ¥3,047 million for the three months ended
June 30, 2024.
Gain on bargain purchase is an extraordinary income and is not included in the segment profit.

10

Inabata & Co., Ltd. (8098)

Ⅱ Three months ended June 30, 2024
1. Information on the amounts of net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments
Information &Electronics

ChemicalsLife Industry

Net sales(1) Sales to external customers(2) Intersegment sales or transfers

74,050–28,831–

14,656–96,007–

213,545–

Total

74,05028,831

14,65696,007

213,545

2,386

717

390

3,295

6,790

Adjustments

Amountrecorded in thequarterly
consolidated
statement ofincome(Note) 2

Segment profit

Others(Note) 1

Total

Plastics

Net sales(1) Sales to external customers(2) Intersegment sales or transfers

45–

213,591–––

213,591
–

Total

45

213,591–

213,591

34

6,825

–

6,825

Segment profit

Total

Notes: 1. “Others” category represents a business segment that is not included in reportable segments, and real estateleasing business.
2. The total amount of segment profit corresponds to operating profit in the quarterly consolidated statement ofincome.

2. Information about impairment loss of non-current assets or goodwill, etc., by reportablesegment(Significant change in the amount of goodwill)In the Plastics Segment, the Company, with the acquisition of the shares of Novacel Co., Ltd.,
included that company and its three consolidated subsidiaries in the scope of consolidationfrom the three months ended June 30, 2024.
As a result, goodwill of ¥2,977 million was recognized in the Plastics Segment. Since theallocation of the acquisition cost had not been completed, a provisional accounting process was
implemented based on reasonable information available as of June 30, 2024.

11

Inabata & Co., Ltd. (8098)

Notes in the case where there was a significant change in the amount of shareholders’ equity
The Company resolved, at the Board of Directors meeting held on May 9, 2024, to acquire treasury
shares based on the provisions of Article 156 of the Companies Act which are applied by replacing
terms and phrases pursuant to the provisions of Article 165, Paragraph 3 of the said act, and acquired
1,061,600 shares of treasury shares during the three months ended June 30, 2024. As a result, treasury
shares increased by ¥3,579 million during the three months ended June 30, 2024, resulting in treasury
shares of ¥4,484 million at the end of the first quarter.
Notes on premise of going concern
Not applicable.
Notes to quarterly consolidated statement of cash flows
A quarterly consolidated statement of cash flows for the three months ended June 30, 2024 is notprepared. Depreciation (including amortization related to intangible assets excluding goodwill) andamortization of goodwill for the three months ended June 30, 2023 and 2024 are as follows.
Three months ended
June 30, 2023
Depreciation
Amortization of goodwill

12

Three months ended
June 30, 2024

¥895 million¥1,011 million–¥1 million