IR Briefing for 1H
Fiscal Year Ending March 2021
(Overview)
December 2, 2020

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

Consolidated Results Review－1H FY03/21

Net sales:¥267.1 billion-13.1% YoY

Net sales were down due mainly to the impact of the COVID-19 pandemic.

Operating profit:¥6.2 billion-12.8% YoY

Operating profit declined on lower net sales.

Ordinary profit:¥6.9 billion-12.5% YoY

Ordinary profit fell due to the decline in operating profit.
Profit attributable to：owners of parent:¥5.8 billion-13.2% YoYProfit attributable to owners of parent fell on lower ordinary profit.
2
Copyright © INABATA＆CO., LTD. 2020

Consolidated Results Review－1H FY03/21(Billions of yen)

YoY change
1H FY03/20

1H FY03/21 (A)307.6

Operating profit

Forecast
announced
November 5,2020(B)

Achievement
rate(A)/(B)

Amount

%

267.1

-40.4

-13.1%

550.0

48.6%

7.1

6.2

-0.9

-12.8%

12.0

51.8%

Ordinary profit

7.9

6.9

-0.9

-12.5%

12.7

54.7%

Profit attributable toowners of parent6.7

5.8-0.8-13.2%

10.5

55.7%

Net sales

Exchange rate
(USD/JPY)

108.60106.93-1.67

107.003Copyright © INABATA＆CO., LTD. 2020

Trend in Net Sales
Net sales(Billions of yen)

800.0
600.0

1H

Full year

634.7

621.1

586.6

Full-year forecast

600.3(as announced on
November 5, 2020)

550.0% Achieved

400.0

322.4

288.8

304.9

FY03/17

FY03/18

48.6%
307.6

267.1

200.00.0（Reference)

Exchange
1H
rate:
USD/JPY Full year

FY03/19

FY03/20

FY03/21

FY03/17

FY03/18

FY03/19

FY03/20FY03/21

105.20108.34111.04110.85110.26110.92108.60108.70106.93107.00(Note)

Note: Estimate at time of release

4Copyright © INABATA＆CO., LTD. 2020

Trend in Operating Profit
Operating profit(Millions of yen)

1H

16,000

Full year

14,031
12,616Full-year forecast

13,229(as announced on
November 5, 2020)

12,00012,000% Achieved

51.8%
8,000

5,679
4,000

7,105

7,126

FY03/19

FY03/20

5,962

6,212

2,939

0
FY03/17

FY03/18

FY03/21

Notes: Recorded ¥0.74 billion in reversal of allowance for doubtful accounts at a European subsidiary in Q2 FY03/21
5
Recorded allowance for doubtful accounts at a European subsidiary in FY03/18:
Copyright © INABATA＆CO., LTD. 2020
1H: ¥3.38 billion; Full Year: ¥6.65 billion

Trend in Ordinary Profit
Ordinary profit(Millions of yen)

1H

16,000

Full Year

14,30913,672Full-year forecast

14,211(as announced on
November 5, 2020)

12,70012,000% Achieved

54.7%
8,000

6,416

6,374

7,154

7,941
6,948

3,369

4,000

0
FY03/17

FY03/18

FY03/19

FY03/20

FY03/21
6Copyright © INABATA＆CO., LTD. 2020

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

1H

15,000

Full year
Full-year
forecast

12,896
11,415
10,000(as announced onNovember 5, 2020)

10,5009,687% Achieved

55.7%

6,744
5,000

6,247

6,738
5,851

4,677
2,730

0
FY03/17

FY03/18

FY03/19

FY03/20

FY03/21
7

Copyright © INABATA＆CO., LTD. 2020

Balance Sheet Notes and accounts receivable - trade, notes and accounts payable - trade, andloans payable decreased on lower net sales.
(Billions of yen)
AssetsCash and deposits
Notes and accounts
receivable - trade
Inventories
Other current assets
Property, plant andequipmment
Intangible assets
Investment securities
Other fixed assets
Total assets

Current ratio

End-FY03/20

EndSep. 2020

Change29.4 28.1 -1.3
152.4 140.0 -12.4
55.9 49.3 -6.5
7.3
7.5 +0.2
13.9 13.7 -0.2
3.0
2.9 -0.0
54.2 61.5 +7.3
6.5
7.1 +0.6
322.8 310.4 -12.3
162.6% 173.2%

Liabilities and net
assets
Notes and accounts
payable - trade
Short-term loans
payableEnd-FY03/20

EndSep. 2020

ChangeAccumulated othercomprehensive income
Non-controllinginterests
Total liabilities and net
assets96.7 85.2 -11.4
43.0 32.4 -10.6
10.9 12.1 +1.2
9.7
7.7 -2.0
14.5 16.3 +1.7
119.1 122.4 +3.2
26.7 32.2 +5.4
1.8
1.7 -0.0
322.8 310.4 -12.3

Equity ratio

45.2% 49.8%

Other current liabilities
Long-term loans
payableOther non-current
liabilities
Shareholders' equity

8Copyright © 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)

0.80

200

162.9
150

146.2

145.9

141.4

154.6
0.60

0.40

10050

0.30

0.28

43.7

39.4

0.19
30.3

0.16
23.4

0.20

0.08
12.1
0.00

0End-FY03/17 End-FY03/18 End-FY03/19 End-FY03/20 End-Sep. 2020
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. 2020

Sales by Business Segment
In Information & Electronics, sales of materials for polarizing film were robust.
In Plastics, sales were down due to the impact of the COVID-19 pandemic andlower plastics prices.

Sales(Billions of yen)

1H FY03/20 1H FY03/21
Information & Electronics

110.4

106.3

YoY
change-3.7%

Chemicals

36.7

30.7

-16.3%

Life Industry

18.3

16.7

-9.0%

Plastics

142.0

113.2

-20.2%

Other

0.0

0.0

-2.8%

Total

307.6

267.1

-13.1%

Plastics:
42.4%Life Industry:
6.3%

Information &Electronics:
39.8%

Chemicals:
11.5%

10Copyright © INABATA＆CO., LTD. 2020

Gross Profit and Operating Profit by Business Segment
In Information & Electronics, profit increased on lower SG&A expenses, resultingin part from the reversal of allowance for doubtful accounts.
In Plastics, profit fell on lower sales.

Gross profit(Millions of yen)

Operating profit

1H FY03/20 1H FY03/21 YoY change
Information &Electronics
Chemicals(Millions of yen)

1H FY03/20 1H FY03/21 YoY change

7,104

6,875-3.2%

2,814

2,404-14.6%

Information &Electronics
ChemicalsLife Industry

2,429

2,213-8.9%

Plastics

11,125

9,177

Other68

Total

23,541

2,415

3,331+37.9%

675

416-38.3%

Life Industry

602

537-10.7%-17.5%

Plastics

3,364

1,861-44.7%

64-4.7%

Other

68

64-4.7%

20,735-11.9%

Total

7,126

6,212-12.8%

11Copyright © INABATA＆CO., LTD. 2020

Sales by RegionSoutheast Asia

Hit hard by lockdowns in Q1

Sales(Billions of yen)

1H FY03/20 1H FY03/21 YoY changeSoutheast Asia

70.9

52.9

-25.3%

Northeast Asia

78.0

75.9

-2.6%

Americas

11.0

8.6

-21.0%

Europe3.7

4.0+6.2%

Japan

143.9

125.5-12.8%

Total

307.6

267.1

-13.1%(Overseas ratio)(53.2%)(53.0%)(-0.2%)Southeast Asia:
19.8%
Japan:
47.0%

Europe:1.5%Note: Sales in the Japan segment include exports (¥22.8 billion in 1H FY03/21). Including this amount,the percentage of overseas sales was 60.9% in 1H FY03/20 and 61.3% in 1H FY03/21.

Northeast Asia:
28.4%

Americas:
3.3%

12Copyright © INABATA＆CO., LTD. 2020

Operating Profit by Region
Northeast Asia
Europe

Profit increased on robust sales of display materials
Profit rose due to reversal of allowance for doubtful accounts

Operating profit(Millions of Yen)

1H FY03/20

1H FY03/21

YoY changeSoutheast Asia

2,307

950-58.8%

Northeast Asia

1,287

1,434

+11.4%

Americas23495-59.3%

Europe64798+1,139.7%

Japan

3,065

2,728

-11.0%

6,958

6,006

-13.7%

Subtotal
Elimination orcorporate

167

205

Total

7,126

6,212

-12.8%(Overseas ratio)(55.9%)(54.6%)(-1.4%)Southeast Asia:
15.8%
Japan:
45.4%

Northeast Asia:
23.9%

Europe:13.3%

Americas:
1.6%

13

Copyright © INABATA＆CO., LTD. 2020

Sales and Operating Profit in the Manufacturing Sector
Compound plants primarily in Southeast Asia were hurt by lockdowns.

Sales(Billions of yen)

(Millions of yen)

40.0
40.0

Operating profit

1200

29.1
23.7

800816

20.0
20.0
400

2220.00
1H FY03/20

1H FY03/21

1H FY03/20 1H FY03/21

Note: Results for 1H FY03/20 have been converted at the exchange rate for 1H FY03/21 (USD1=JPY106.93).

14Copyright © INABATA＆CO., LTD. 2020

Impact of the Novel Coronavirus Outbreak
Assumptions underlying the business outlook■As of Q1 FY03/21 results announcement
The impact of the novel coronavirus outbreak varies by the country where theCompany operates. While the outbreak is expected to have a lingering impact
throughout the rest of the fiscal year, the Company assumes that global andJapanese economic environments will gradually recover through the end ofFY03/21, rather than experiencing another sharp drop in economic activity asin Q1.

 Business segments and areas significantly affected by the outbreakBusiness segment: Plastics, Chemicals
Area：Automobile, among others
Region：Southeast Asia
■As of 1H FY03/21 results announcement
1H FY03/21 Faster recovery than expected (due in part to reversal ofallowance for doubtful accounts)
2H FY03/21 The Company maintains assumptions as of Q1 results
announcement
15Copyright © 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

241.0Life Industry

42.3
76.7

39.0
77.5

36.9
74.1

39.0
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.
16Results 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 Other

15

13.2
Other

0.13

10

6.34

5.9 Other

0.13

12.0
Other

0.10

6.23

4.20

Other
Plastics

0.12

50

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

-5

1.31
1.42

1.16
1.20

4.81

4.48

FY03/19(Actual)

FY03/20(Actual)

1.55
0.85

Life IndustryChemicals

5.30

Information &Electronics

FY03/21(Forecast)

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.
In Q2 FY03/21, we booked ¥0.74 billion in reversal of allowance for doubtful accounts at a European subsidiary in the Information & Electronics segment.
17The Housing & Eco Materials segment was combined with the Chemicals segment in FY03/20.
Copyright © INABATA＆CO., LTD. 2020
Results for fiscal years up to and including FY03/19 have been retroactively adjusted to reflect this change.

Consolidated Subsidiaries

Companies
JapanOverseas

Total

Consolidated subsdiaries

73744(Of which, manufacturers)

(5)

(17)

(22)

Equity-method affiliates

41

5(Of which, manufacturers)

(2)

(1)

(3)

Total

113849(Of which, manufacturers)

(7)

(18)

(25)

Note: In FY03/21, the Company made a partial change to the classification of group companies and added a manufacture and processing 18company (based in Japan) to consolidated subsidiaries (marine products processing company Ikkoen Co., Ltd.)
Copyright © INABATA＆CO., LTD. 2020

Principle Consolidated Subsidiaries(Millions of yen)

1H FY03/21

1H FY03/20

YoY changeCompanyLocation

Taiwan Inabata
Sangyo Co., Ltd.

Taiwan25,464306

225 17,599

380

270 -30.9％ +24.3% +20.3%

Inabata Sangyo(H.K.) Ltd.

Hong Kong

32,095365

411 29,564

450458Inabata Singapore(Pte.) Ltd.

Singapore

24,675326

487 19,724

312

473 -20.1%

Inabata Thai Co.,
Ltd.

Thailand

18,671

231

307 14,326

90

110 -23.3% -61.3% -64.0%

Shanghai Inabata
Trading Co., Ltd.

Shanghai

28,757395

241 27,712421

321

PT. Inabata Indonesia Indonesia

13,894578

365

7,121

150

93 -48.7% -74.1% -74.6%

Inabata Fine Tech &Co., Ltd.

8,904

179

1148,551

235

155

Japan

Net sales

Operating Net
Operatin Net
Operatin Net
Net sales
Net salesg profit income
g profit income
profit income-7.9% +23.4% +11.6%

-3.6%

-4.4%

-2.9%

+6.8% +33.0%-4.0％ +31.2% +35.9%

Note: Results for 1H FY03/20 have been converted at the exchange rate for 1H FY03/21 (USD1=JPY106.93).

19Copyright © INABATA＆CO., LTD. 2020

(Reference) Equity Capital
Capital stock and capital surplus

Retained earnings

Treasury shares

Valuation difference on available-for-sale securities

Deferred gains or losses on hedges

Foreign currency translation adjustment

Remeasurements of defined benefit plans(Billions of yen)

162.9
146.2
150

50

141.4

3.2

145.9

154.6
0.9
32.1

110.0

48.8

45.6

2.5
37.2

1.4
26.1

83.2

87.1

97.8

106.1

2.7

17.0

-50
FY03/17

17.0

17.1

17.1

Treasury shares:-2.0

Treasury shares:-2.7

Treasury shares:-3.7

Remeasurements ofdefined benefit plans:-0.2

Remeasurements ofdefined benefit plans:
0.0

Remeasurements ofdefined benefit plans:-0.2

FY03/18

FY03/19

Deferred
gains orlosses onhedges0.1

16.5

Treasury shares:-4.1
Remeasurements ofdefined benefit plans:

FY03/20-1.0

Deferred
gains orlosses onhedges0.1
Treasury shares:-4.1
Remeasurements ofdefined benefit plans:-0.8

End-Sep. 2020
20

Copyright © INABATA＆CO., LTD. 2020

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

4.04

2.7

3.2

2.5

1.4

2.02

0.9

0
FY03/17

FY03/18

FY03/19

FY03/20

End-Sep.
2020

USD/JPY

CNY/JPY108.34110.85110.92108.70106.93

16.10

16.74

16.54

15.55

15.26

FY03/17

FY03/18

FY03/19(Yen)

150.00100.0050.00
0.00
FY03/20 1H FY03/21
21

Copyright © INABATA＆CO., LTD. 2020 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.

22Copyright © INABATA＆CO., LTD. 2020