IR Briefing for
the Fiscal Year Ended March 2021
Achievement of Targets in NC2020, Our Previous Medium-Term Management Plan,and Summary of NC2023, Our New Medium-Term Management Plan

Inabata & Co., Ltd.
Katsutaro Inabata, Director, President
Inabata & Co., Ltd. held the financial results briefing for the fiscal year ended
March 2021 via live broadcast on June 3.

1

Contents
Page
3

Company Overview

5

Achievement of Targets in Medium-Term Management Plan NC2020

15

Summary of New Medium-Term Management Plan NC2023

25

Returning Profits to Shareholders

27

Reference Materials* In this document, Net income = Net income attributable to owners of parent

2Company Overview

About Inabata:
1. Founded in 1890

Inabata Dye Shop (Nishijin, Kyoto)

The Company was founded in Kyoto in 1890 as an importer ofdyestuffs. The business was later expanded with a focus on
chemicals.

2. A globally expanding, multifaceted
trading company
The company operates at 60 locations across 17 countries. Business
functions include market development, manufacturing and processing,logistics, and finance. Our plans and proposals are based on
specialized expertise and knowledge of products and markets.
3Company Overview
3. Four business segments
We operate in four segments: Information & Electronics, Chemicals,Life Industry, and Plastics.

Life
Industry
Chemicals6%

12%

FY03/21 Plastics
Net sales: 43%¥577.5 billion
Information &Electronics

39%

4

◼ Achievement of Targets
in Medium-Term Management Plan
New Challenge 2020 (NC2020)5

Operating Environments in FY03/21:
Information & Electronics (FPD Market)◼ TV set shipments in FY03/21:
234 million units (+6% YoY)
• Demand increased, driven by growth in demand associated with the consumer tendency to remainindoors during the COVID-19 pandemic.
◼ LCD panel shipments in FY03/21: 270 million units (-5% YoY)
• Recovery in capacity rates associated with the back-end processes of panel manufacturing wasdelayed due to the COVID-19 pandemic.
• Semiconductor procurement was complicated by trade friction between the US and China.
◼ Supply was tight and LCD panel prices rose on an annual basis amid strong demand.
◼ Sales of organic electroluminescent panels for smartphones continued to grow, but this growth was
limited when measured in terms of area.

Projected Breakdown of Total Flat Panel Display Area (LCDs and OLEDs)% of total
panel area

2017

2018

2019

2020

2021

2022

LCDs

97％

97％

96％

96％

95％

94％

OLEDs

3％

3％

4％

4％

5％

6％

Note: Projected figures are provided for reference and represent company predictions based on various data

6

Operating Environments in FY03/21: Plastics◼ Q1 FY03/21 began with a sharp plunge in naphtha prices due to the global spread of the COVID-19
pandemic. Prices for commodity resins and other products fell due in part to a decline in demand.
◼ End-user demand in Southeast Asia and elsewhere plummeted in 1H due to lockdown-related impact.
◼ The Chinese market recovered rapidly at an early stage, and demand in Southeast Asia and Japan
also grew sharply through 2H, primarily in the automotive sector.

Domestic naphtha prices（JPY/kl）

COVID-19 pandemic

60,00054,20045,40039,10038,80048,70041,20030,00044,80031,30040,20036,10030,20025,000

NC20200Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

Domestic naphtha prices

7

Achievement of NC2020 Targets◼ Net sales fell short of the target by a wide margin, causing a shortfall in operating profit.
◼ Ordinary profit and profit attributable to owners of parent exceeded targets.
◼ The net debt/equity ratio was lower than projected as the Company made progress in terms of securing
financial soundness.

(Billions of yen)

NC2020 target for
FY03/21(A)

FY03/21
actual(B)

Achievement rate(B)/(A)%

Difference

730.0

577.5

-152.479%

Operating profit

15.5

14.9

-0.5

97%

Operating profit margin

2.1％

2.6％

+0.5％

Ordinary profit

16.0

16.5

+0.5

103％

Profit attributable toowners of parent

12.0

13.7

+1.7

115%

Net debt/equity ratio

0.4x or less

0.06

－

49.2%

USD1=¥110.00

USD1=¥106.10

Net sales

Equity ratio
Exchange rate

Achieved－－

8

NC2020

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

Target

800.0
630.0

660.0

700.0

730.0

400.0
572.1

577.0

586.6

621.1

634.7

600.3

577.5

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/210.0（actual） （actual） （actual） （actual） （actual） （actual） （actual）

NC2016

NC2020Operating profit(Billions of yen)

Target

20.0
12.5

13.5

14.5

15.5

10.0
10.7

11.3

12.6

14.9

14.0

13.2

FY03/19

FY03/20

FY03/21（actual） （actual）（actual）

5.9
0.0
FY03/15

FY03/16（actual） （actual）

FY03/17

FY03/18（actual） （actual）✓ Net sales continuously fell short of targets
due in part to delayed new productdevelopment and COVID-19 impact
incurred toward the end of the plan.
✓ Operating profit dropped sharply YoY in
FY03/18 and fell widely short of the target
as the Company recorded ¥6.65 billion inallowance for doubtful accounts following
issues related to a European subsidiary. In
FY03/19, the second year of the plan,
operating profit recovered and met its
projected target.
✓ In FY03/20, both net sales and operating
profit declined, falling short of theirrespective targets.
✓ In FY03/21, despite falling short of its
projected target, operating profit recovered
due in part to rapid 2H business recovery,
reversal of allowance for doubtful accounts,
and a decline in SG&A expenses causedby the COVID-19 pandemic.
9

NC2020

Ordinary Profit and Net Income
Ordinary profit(Billions of yen)

Target

20.0
13.0

14.0

15.0

16.0

10.0
13.2

13.6

12.2

14.3

14.2

FY03/19

FY03/20

16.5✓ Along with operating profit, ordinary profit
and net income declined sharply in
FY03/18, falling short of targets.

6.3
0.0
FY03/15

FY03/16

FY03/17（actual）（actual） （actual）

FY03/18（actual） （actual）

NC2016（actual） （actual）

NC2020Net income(Billions of yen)

FY03/21

Target

20.0

10.0

12.0

10.5

11.0

12.8

11.4

FY03/19

FY03/20

FY03/21（actual） （actual）（actual）

10.0
8.6

9.5

9.6

FY03/15

FY03/16

FY03/17

13.7✓ Ordinary profit achieved its projected target
in FY03/19. It also met projections in
FY03/21 as interest expenses declined due
to interest rates that were lower than
expected and a decrease in borrowings.
✓ Net income achieved its projected targets
in FY03/19 through FY03/21 as theCompany progressively sold strategicallyheld shares and reported gains on the salethat were higher than expected.

6.7

0.0
（actual） （actual）

FY03/18（actual） （actual）

10

NC2020
Differences between Targets and Actual Results for
Net Sales and Operating Profit by Segment◼

Sales fell short of targets in all segments while operating profit achieved its projected target in the Information & Electronics segment.

(Billions of yen)

NC2020target for
FY03/21 (A)FY03/21
actual(B)

Difference(B)-(A)（億円）

Net sales

Operatingprofit

730.0

15.5

577.5

14.9

-152.4-0.5

Segment

Difference

Information &Electronics-36.4

Chemicals-29.0Life industry-27.6

Plastics

-59.1

Other

-0.1

Information &Electronics+1.9

Chemicals-0.8Life industry-1.2

Plastics

-0.2

Other

-0.1

Notes: In the Information & Electronics segment, recorded ¥0.75 billion in reversal of allowance for doubtful accounts
at a European subsidiary in FY03/21.
Detailed comparisons between results and targets by segment can be found on page 31 through 38 in the Reference Materials section.

11

Achievement of Key NC2020 Initiatives

Key Initiatives

Assessment

1.

Further expansion and deeper involvement in overseas
businesses△

2.

Focus on markets with growth potential and sectors thathave yet to be developed

See next page3.

Further enhancement of information infrastructure essential
for global management◎

4.

More proactive investment to expand the trading business△5.

Continual review of assets and enhancement of financial
standing◎

6.

Establishment of global human resource management△

Note: Page 39 through 43 in the Reference Materials section

12

Achievement of Key NC2020 Initiatives
2. Focus on markets with growth potential and sectors that have yet to be developed
Key Initiatives

Assessment

2. Focus on markets withgrowth potential and sectorsthat have yet to be developed⚫ Automotive⚫ Life science andmedical⚫ Environment andenergy⚫ Food, including
agriculture(Agricultural field)

◎

×

△

△

Despite heavy impact from the COVID-19 pandemic in the final year of the plan, salesof resins and other products to global customers expanded more than expected,
business in Japan grew, and sales of heat-dissipating materials increased.
Sales of pharmaceutical ingredients failed to grow and fell short of their projected
target due in part to the COVID-19 pandemic.
In the field of regenerative medicine, the Company reported sales of growth media
and devices but did not achieve expansion in sales of new products.
In the home products category, sales of insect repellent and pesticide materials grew
but inbound tourist demand virtually disappeared.

The Company revised its forecast for solar cell sales due suspensions of relatedtransactions in Europe.
The Company focused on system-related projects in Japan.
Despite slight delays to lithium-ion cell-related sales, the Company experienced
growth in 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.
New business development encountered delays.
Sales of imported grass and other types of animal feed were robust.
The Company also reported growth in sales of processed marine products forconveyor-belt sushi restaurants.

We will continue to address unresolved issues under NC2023.

13

Returning Profits to Shareholders
Policy on returning profits to shareholders
We target a total return ratio of approx. 30–35%.
Dividends per share:◼ FY03/21 results
Annual dividend ¥63（interim ¥20 year-end ¥43）
Total return ratio: 27.6% (dividend payout ratio: 27.5%)
Note: Total return ratio (%) = (dividend amount + amount of treasury shares acquired) / consolidated net income x 100

We have formulated a new shareholder return policy under NC2023.

◼ FY03/22 (forecast)
Annual dividend ¥70（interim ¥30

year-end ¥40）
14

◼ Summaryof New Medium-Term Management Plan
New Challenge 2023 (NC2023)

15

NC2023: Basic Policies◼ Second-stage medium-term management plan on the way to our long-term vision, IK Vision 2030
◼ Continues along the same basic trajectory as NC2020, the first-stage plan
◼ Some adjustments have been made based on the degree of achievement associated with targets in
NC2020 and changes in the current business environment.
MissionPeople come first, based on the spirit of "love ( ai )" and " respect ( kei )," andtogether we strive towards contributing to the development of society.

VisionIK Values

To continually evolve, serving clients and society, through global
operations and meeting their changing needs.
IK Values
Ethics, aspiration, organization, role, symbiosis

IK Vision 2030
IK Vision 2030 (envisioning ourselves around 2030)

Medium-term management plan

Second stage NC2023 (targets for FY03/24)

First stage NC2020 (concluding March 31, 2021)
16

Quantitative Targets of NC2023

FY03/24
Net sales¥670.0 billion

Operating profit¥16.5 billion

Ordinary profit¥17.0 billion

Profit attributable toowners of parent¥16.0 billion

ROE

8％ or more

Net D/E ratio

0.3x or less

Equity ratio

50% or more

Assumed exchange rate

USD1 = JPY105

Note: Sales target based on accounting standards prior to the adoption of
the revised revenue recognition methods: 700.0 billion JPY

17

Key Initiatives for NC2023

1.

Further development of core businesses and horizontal expansion
into growth sectors

２.

Multi-faceted approach to markets with potential for future growthand steady monetization efforts

3.

Intensification of investment targeting future growth

4.

Further upgrades to global management information infrastructure

5.

Continuous review of assets and further improvement of capitaland asset efficiency

6.

Enhancement of human capital utilization efforts
18

Key Initiatives for NC2023
1. Further development of core businesses and horizontal
expansion into growth sectors
Segment
Information &Electronics
Plastics

Key Initiatives•••

Enrich LCD and OLED businesses within the Chinese market
Focus on FPDs for the new generation and peripheral components
Concentrate on the currently expanding business related to industrial inkjet
printers•

Take advantage of global expansion in the plastic compounds business andother operations and achieve business expansion, particularly in theautomotive sector

19Key Initiatives for NC2023
2. Multi-faceted approach to markets with potential for future
growth and steady monetization efforts
Segment

Key Initiatives

Information &Electronics
Plastics
Chemicals••

Expand our lineup of environmental impact-reducing products
Conduct multifaceted rollout of initiatives supporting business in the newenergy sector, 5G-related business, and business associated with
automotive applications and mobilityLife industry（Food and
agriculture）•

Accelerate upstream and downstream expansion through wide-ranging
investment and other initiatives

Life industry(Life science)•Strengthen focus on the regenerative medicine sector and other markets
with growth potential

20

Key Initiatives for NC2023
3. Intensification of investment targeting future growth◼ We will consider investing in the following sectors and fields to achieve
expansion in the trading business.
Segment

Information &Electronics
Life industry

Key Initiatives•

Batteries and other elements of renewable energy•

Upstream and downstream domains associated with food products andagriculture (especially processing functions)Regenerative medicine and other growth areas (venture investment, etc.)••

Plastics
Chemicals•

Pursue manufacturing functions with the aim of achieving enrichment in theautomotive sector
Automation and labor saving in manufacturing divisions for compounds, etc.

•

Mobility sector

21Key Initiatives for NC2023
4. Further upgrades to global management information
infrastructure
Key Initiatives••

Embrace new technological trends and promote further digitalization (digital transformation
initiatives)
Establish a global management information infrastructure that will support security
enhancement, business continuity planning, and new workstyles

22Key Initiatives for NC2023
5. Continuous review of assets and further improvement of
capital and asset efficiency
Key Initiatives••

Further review strategically held shares and reduce them by 50% in three years
Allocate cash earned evenly toward the following three areas:
1) Investment for future growth2) Returns to shareholders
3) Strengthening of financial base23

Key Initiatives for NC2023
6. Enhancement of human capital utilization efforts

Key Initiatives••

Further implement systemic enhancements aimed at supporting global human resource
development and increasing diversity
Strengthen initiatives targeting employee engagement and new workstyle reforms

24◼ Returning Profits to Shareholders

25

NC2023

Returning Profits to Shareholders◼ As we launch NC2023, we have formulated a new shareholder return policy that
we will implement during the plan.

Adoption of progressive dividends
We will ensure that dividend per share does not decline year on year bycontinually increasing our dividends• We will continue to target a total return ratio of about 30–35%.
• We will swiftly and flexibly conduct treasury stock acquisition.
(Yen)

80

Dividends per share

63
48

40

30
21

33

36

40

70 Progressive
dividends

53

40

23

0
FY03/12 FY03/13 FY03/14 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24
NC2016

NC2020

NC202326

◼ Reference Materials

27

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

(Net sales: Billions of yen)
1,200.0

Net sales

35.0

Operating profit

1,000.0 30.0

1,000.0

25.0
800.0

561.1

600.0

572.1 577.0 586.6

14.0

469.0 464.4 479.9
410.7

12.6
10.9

400.0
7.9

7.6

621.1 634.7

10.7(Goal)(Target) 670.0(Target)

600.3

600.0

635.0

16.5
577.5
14.9 14.5 15.5

13.2

20.0

15.0

11.3
10.0

7.7
5.9

5.5
200.0

5.0

0.0

0.0
Around 2030
IK Vision 2030
NC2016

NC2020

NC202328

Sales by Segment(Billions of yen)

Information & Electronics

1,200.0

ChemicalsLife Industry

Plastics

Other

1000.01,000.0

800.0(Goal)

621.1(Target)

634.7
0.1

0.1

600.0

(Target)

600.3

577.5
0.1

635.0

600.0

0.2

0.2

0.2

0.1

670.0

284.0

300.8

286.9

300.0

270.3

248.8

267.0

42.3
76.7

39.0
77.5

36.9
74.1

37.3
66.6

38.8
68.0

42.8
72.0

46.0
77.0

214.9

217.9

218.6

224.5

226.0

236.0

246.0

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

400.0

200.0

0.0

NC2020Around 2030
IK Vision 2030

NC202329

Operating Profit by Segment(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

Other

27.50

22.50
(Goal)(Target)

17.50

14.9

14.0

13.2

0.13

5.63

5.9

6.34

2.50
1.92
0.41
(2.04)
FY03/18

0.10

6.25

6.70

16.5
0.10
7.05

6.23

0.12

5.54

0.10

15.5

0.13

12.50

7.50

0.13

14.5

(Target)

1.31
1.42

1.16
1.20

4.81

4.48

FY03/19

FY03/20

1.56
1.32

6.32

FY03/21

2.00

2.20

1.90
1.20

1.35

1.50

5.05

5.35

5.65

FY03/22

FY03/23

FY03/24(2.50)
NC2020Around 2030
IK Vision 2030

NC202330

NC2020 Target Achievement by Segment 【Information & Electronics】(Billions of yen)

300.0

Sales

FY03/20 actual

FY03/21 actual
(A)

Sales

218.6

224.5

261.0

86％

Operating profit

4.48

6.32

4.40

144％

Operating profit
margin

2.0％

2.8％

1.7％

―

(Billions of yen)

200.0

（億円）
224.5

100.0

261.0

（億円）

0.0
FY03/21(actual)

FY03/21(goal)◼ NC2020 operating profit target
Main reasons for differences between actual andtarget figures(Billions of yen)

8.00

Operating profit

•
•
•
•

4.00
6.32
4.40

•
•

0.00
FY03/21(actual)

FY03/21(goal)•

Increase in FPD material sales
Reversal of allowance for doubtful
accounts at a European subsidiary
Lower SG&A expenses
Discontinuation of solar cell transactions at a
European subsidiary
Decision to forgo low-margin VMI
transactions
Increase in remote work (home-use inkjet
printers)
Same as above (office multifunction printers)

NC2020target for
FY03/21 (B)⇒Achievement
rate（A)/(B)

Achieved

COVID19

Operatingprofit

Sales

＋
＋
+

＋
－

－
+

＋

＋

－

－

－

31

Notes: In the Information & Electronics segment, recorded ¥0.75 billion in reversal of allowance for doubtful accounts at a European subsidiary in FY03/21.
When excluding the impact of ¥750 million from this reversal of allowance for doubtful accounts, the OPM in the Information & Electronics segment in FY03/21 was 2.5%.

NC2020 Net Sales and Operating Profit 【Information & Electronics】
Net sales(Billions of yen)

Target

400.0
229.0

235.0

250.0

261.0

✓

Sales continuously fell short of targets due to a
decline in business related to European
subsidiaries, and the decision to shelve lowmargin VMI transactions in the OA-related
business.

✓

The Company reported a segment operating loss
in FY03/18 due to the posting of ¥5.9 billion inallowance for doubtful accounts associated with aEuropean subsidiary.

✓

Segment operating profit exceeded targets in
FY03/19 and FY03/20 as performance related to
FPDs, an important source of earnings, grew inChina and results associated with solar cells andsemiconductors came up strong in Japan.

✓

Segment operating profit came in above forecast
in FY03/21 due to strong business, a decline in
SG&A expenses caused by the COVID-19
pandemic, and a reversal of allowance for doubtful
accounts.

200.0
209.3

211.6

221.0

214.9

217.9

218.6

224.5

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/210.0（actual） （actual） （actual） （actual） （actual） （actual） （actual）

NC2016

NC2020Operating profit

Target(Billions of yen)

8.00

3.70

4.00

4.20

4.40

4.00
4.48

3.83

3.99

6.32

4.81

4.48

FY03/19

FY03/20(2.04)

0.00
FY03/15

FY03/16

FY03/17

FY03/18

FY03/21（actual） （actual） （actual） （actual） （actual） （actual） （actual）(4.00)

32

NC2020 Target Achievement by Segment 【Chemicals】(Billions of yen)

100.0

Sales

FY03/20 actual

FY03/21 actual
(A)

74.1

66.6

95.7

70％

Operating profit

1.20

1.32

2.20

60％

Operating profit
margin

1.6％

2.0％

2.3％

―

(Billions of yen)

（億円）
95.7

50.0

Sales

66.6
（億円）
0.0
FY03/21(actual)

FY03/21(goal)◼ NC2020 operating profit target

3.00

Operating profit

•
•

•
2.20

1.00

•

1.32

•

0.00
FY03/21(actual)

FY03/21(goal)⇒

Main reasons for differences between actual andtarget figures(Billions of yen)

2.00

NC2020target for
FY03/21 (B)•Sluggish performance in the former
Housing & Eco Materials segment
Sluggish export sales in the former Housing &Eco Materials segment
Slow sales of heat-dissipating products

Achievement
rate（A)/(B)Not achieved
COVID19

Weak sales of raw materials used in
substances such as paints, inks, andadhesives－

Review of transactions at a European
subsidiary
Lower SG&A expenses＋

Operatin
g profit

Sales

－

－

－

－

－
－

－
－

－

－

＋

Notes: In FY03/21, the Company targeted segment operating profit of ¥2.2 billion and aimed to acquire ¥600 million of this total from the former Housing & Eco
Materials segment.
Segment operating profit fell short of its target by ¥880 million and ¥450 million of this shortfall occurred in the former Housing & Eco Materials segment.

33

NC2020 Net Sales and Operating Profit 【Chemicals】
Net sales(Billions of yen)

Target

150.0

100.0

50.0

91.7

95.7

80.7

85.7

77.1

73.0

73.1

76.7

77.5

74.1

66.6

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21✓

Sales continuously fell short of targets due
primarily to sluggish performance in the former
Housing & Eco Materials segment.

✓

Segment operating profit fell sharply YoY in
FY03/18 due to the posting of ¥750 million inallowance for doubtful accounts associated with aEuropean subsidiary.

✓

Segment operating profit improved in FY03/19 but
continued to fall short of its targets throughFY03/21 as sales fell short of expectations amid
impact from factors such as a lack of progress
associated with planned export business in theformer Housing & Eco Materials segment.

0.0（actual） （actual） （actual） （actual） （actual） （actual） （actual）

NC2016

NC2020Operating profit(Billions of yen)

Target

3.00
2.00

2.00

1.50

2.20

1.70

1.00
1.35

1.43

1.42

1.26

1.20

1.32

FY03/20

FY03/210.41

0.00
FY03/15

FY03/16

FY03/17

FY03/18

FY03/19（actual） （actual） （actual） （actual） （actual） （actual） （actual）

Note: The Housing & Eco Materials segment was
combined with the Chemicals segment in FY03/20.
FY03/19 results have been calculated according to
the new alignment.

34

NC2020 Target Achievement by Segment 【Life Industry】(Billions of yen)

80.0

Sales

FY03/20
actualFY03/21 actual(A)

NC2020target for
FY03/21 (B)

36.9

37.3

65.0

57％

Operating profit

1.16

1.56

2.80

56％

Operating profit
margin

3.2％

4.2％

4.3％

―

(Billions of yen)
Sales

（億円）
40.0
65.0

37.3
（億円）

◼ NC2020 operating profit target

0.0
FY03/21(actual)

FY03/21(goal)

Main reasons for differences between actual andtarget figures(Billions of yen)

4.00

Operating profit

•
•
•

2.00
2.80

•
•

1.56

•

0.00
FY03/21(actual)

FY03/21(goal)⇒•

Pharmaceutical ingredients (supply
resumption delays at suppliers)
Same as above (decline in the use of
influenza drugs)
Food-related (plans suspended at a European
subsidiary)
Same as above (delays in the launch of
new businesses)
Same as above (sluggish sales to restaurants
and food service facilities)
Same as above (growth in fishery productsales to conveyor-bent sushi restaurants)
Lower SG&A expenses

Achievement
rate（A)/(B)Not achieved
COVID19－－＋

Operatingprofit

Sales

－

－

－

－

－

－

－

－

－

－

＋

＋

＋

35

NC2020 Net Sales and Operating Profit 【Life Industry】
Net sales(Billions of yen)

Target

80.0
59.0

54.0

65.0

47.0

40.0
41.0

40.4

42.3

39.0

36.9

37.3

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21（actual）（actual） （actual）

34.6
0.0

（actual） （actual）

NC2016

NC2020Operating profit(Billions of yen)（actual） （actual）

Target
2.80

3.00
2.30

2.50

2.00

2.00
1.92
1.00
1.03

1.52

1.82

1.31

1.16

FY03/19

FY03/20✓ Sales continuously fell short of targets. The
Company noted a particular shortfall interms of progress associated with new
food-related business planned through aEuropean subsidiary.
✓ Segment operating profit came close toachieving its target in FY03/18 thanks tosolid performance from pharmaceuticalingredients and steady home productrelated results but began to fall off in
FY03/19. Food-related profit was alsostagnant as the Company incurred upfront
expenses. Consequently, segment
operating profit continuously fell
substantially short of targets.

1.56

0.00
FY03/15

FY03/16

FY03/17

FY03/18

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

36

NC2020 Target Achievement by Segment 【Plastics】(Billions of yen)

400.0

Sales

FY03/20 actual

FY03/21 actual(A)

NC2020target for
FY03/21 (B)

Sales

270.3

248.8

308.0

81％

Operating profit

6.23

5.63

5.90

95％

Operating profit
margin

2.3％

2.3％

1.9％

―

(Billions of yen)

（億円）
200.0

308.0
248.8
（億円）
0.0
FY03/21(actual)

FY03/21(goal)◼ NC2020 operating profit target(Billions of yen)

8.00

Operating profit

•
•
•
•

4.00
5.63

5.90

•
•

•

0.00
FY03/21(actual)⇒Achievement
rate（A)/(B)Not achieved

Main reasons for differences between actual andtarget figures

COVID19

OperatingprofitDecrease in commodity resin sales
Decrease in high-performance resin sales
Drop in plastics prices
Increase in the share of sales from highperformance resins
Struggling at our compounds plant
Favorable film-related performance (Group
companies)

－
－

－
－

Sales

－
－
－

＋
－
－

－
＋
－

－
＋
－

Decrease in sporting goods-related sales

FY03/21(goal)

37

NC2020 Net Sales and Operating Profit 【Plastics】
Net sales(Billions of yen)

Target

400.0
273.0

285.0

299.0

308.0

200.0
250.4

251.1

251.8

FY03/15

FY03/16

FY03/17

286.9

300.0

FY03/18

FY03/19

270.3

248.8

FY03/20

FY03/210.0✓ Sales reached targets in FY03/18 andFY03/19 but fell short in FY03/20 due to a
decline in plastics prices and came up
short again in FY03/21 due to substantial
impact from global lockdowns imposed in
response to the COVID-19 pandemic
during 1H.

（actual） （actual） （actual） （actual） （actual） （actual） （actual）

NC2016

NC2020Operating profit

Target(Billions of yen)

8.00

5.10

5.30

5.60

5.90

6.34

6.23

5.63

FY03/19

FY03/20

4.00
3.73

4.43

5.39

5.54

FY03/17

FY03/18✓ Segment operating profit met its targets
from FY03/18 through FY03/20 as theCompany reported steady growth in resultsfrom the automotive and other businesses.
In both FY03/19 and FY03/20, segment
operating profit exceeded the target for the
final year of the plan, but in FY03/21, theplan’s actual final year, segment operating
profit declined due to substantial impact
from the COVID-19 pandemic and came inshort of its target.

0.00
FY03/15

FY03/16

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

38

Achievement of Key NC2020 Initiatives
1. Further expansion and deeper involvement in overseas businesses
Key Initiatives

Assessment

1. Further expansion and deeper
involvement in overseas businesses

Overseas sales ratio was generally flat due in part to
COVID-19-related impact incurred in FY03/21, trending
between 52 and 53%.

△

Overseas sales【by region】(Billions of yen)Overseas ratio

800.0

100.0%
70.0%

600.0
51.4%

52.9%

53.4%

52.8%

53.7%

52.7%

53.4%

400.0
200.0

700.0
294.0

305.4

312.9

327.7

340.6

316.3

50.0%

308.5

0.0

0.0%
FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

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

NC2016

Around2030
IK Vision2030

NC202039

Achievement of Key NC2020 Initiatives
3. Further enhancement of information infrastructure essential for global management
Key Initiatives

Assessment

3. Further enhancement of
information infrastructure essential
for global management◎••

Prioritize infrastructure that isbest for the entire Group
Enhance and standardize
overseas business management

We managed a project focused on standardizing coresystems (SAP) overseas. Internal Group information is
becoming more transparent as comprehension at thehead office has improved and internal controls atoverseas bases have strengthened.
We achieved improvement in IT infrastructure byimplementing cloud technology at overseas bases.

40

Achievement of Key NC2020 Initiatives
4. More proactive investment to expand the trading business
Key Initiatives

Assessment

4. More proactive investment toexpand the trading business• Make minority investments,
primarily to expand the tradingbusiness• Consider majority investments,
but with limited risk and scale△(Billions of yen)

FY03/18
actualFY03/19
actualWe did not achieve key initiatives as planned due in partto impact from the COVID-19 pandemic.
Although we will continue to focus primarily on
expanding the trading business, under NC2023, we will
additionally concentrate on conducting more active
investment in endeavors such as M&A.

FY03/20
actualFY03/21
actual

NC2020
Actualcumulative
results

Growthinvestment

3.86

2.31

1.85

0.86

8.90

Fixed
investment

1.59

2.03

2.01

2.40

8.03

Total

5.45

4.34

3.86

3.26

16.93
41

Achievement of Key NC2020 Initiatives
5. Continual review of assets and enhancement of financial standing
Key Initiatives

Assessment

5. Continual review of assets andenhancement of financial standing◎

We strengthened our financial standing by a greater
extent than anticipated.
We improved our net debt/equity ratio to 0.1,
outperforming our projected target of 0.4 or lower.
Our equity ratio also improved to nearly 50%.
We continued to review, and progressively sold, ourstrategically held shares.

End-FY03/18

End-FY03/19

End-FY03/20

End-FY03/21

Goal

Net D/E ratio

0.28

0.19

0.16

0.06

0.40 or less

Equity ratio

40.1%

44.5%

45.2%

49.2%

－

42

Achievement of Key NC2020 Initiatives
6. Establishment of global human resource management
Key Initiatives

Assessment△
6. Establishment of global humanresource management

In 2018 and 2019, we held Global Staff Meetings inJapan to facilitate communication between members of
local staff. Since 2020, we have cancelled thesemeetings due to the COVID-19 pandemic.
We conducted workshops at 36 locations in 14 countries
to promote “IK Values,” and more than 700 local staff
members participated.
We also put items of consideration such as temporary
assignments in Japan for members of overseas
management on hold due to the pandemic. We willaddress these items under NC2023.

43

NC2020 Focus on Markets with Growth Potential and
Sectors That Have Yet to Be Developed
Principal initiatives in the automotive field
Progress slowed down in FY03/21 due to lockdown-related impact incurred in 1H, but business associated with
Plastics and Chemicals recovered rapidly in 2H.
Plastics:

We are working to increase sales of plastics to global customers, and are also expanding in-country
sales.
Chemicals: We are expanding sales of parts and paint materials, and are focusing on sales of heat-dissipating
materials and parts.
Information & Electronics: Potential exists to sell decorative films.
(Billions of yen)

Sales from principal business in the automotive field (simple totals)

100.0

75.0
10.1
50.0

11.9

10.1

10.9

10.5

Chemicals, Other
Plastics

25.0

46.5

52.6

56.6

FY03/19(actual)

FY03/20(actual)

49.7

58.2

0.0
FY03/18(actual)

FY03/21(actual)Note: Sales figures for plastics primarily reflect sales made to global account users.

FY03/21(midium-termtarget)44

NC2020 Focus on Markets with Growth Potential and
Sectors That Have Yet to Be Developed
Principal initiatives in the environment and energy field
Information & Electronics: Sales of solar cells were down sharply due to discontinuation of transactions at a
European subsidiary, but we intend to focus on the sale of high value-added
materials and systems.
Sales of lithium-ion battery materials to manufacturers in China and South Korea are
increasing.
Chemicals: We will focus on sales of wood chips and particle board.

30.0

Sales from principal business in theenvironment and energy fields (simple totals)

20.0

3.4

(Billions of yen)

Chemicals, Other

10.0

Information & Electronics

2.3

2.6

2.9

7.5

7.2

FY03/20(actual)

FY03/21(actual)

18.6

2.7
8.0

4.9

0.0
FY03/18(actual)

FY03/19(actual)Note: Results for past fiscal years include certain amounts that have been updated.

FY03/21(midium-termtarget)45

NC2020 Focus on Markets with Growth Potential and
Sectors That Have Yet to Be Developed
Principal initiatives in the life science and medical fields
Sales of pharmaceutical ingredients in FY03/21 were sluggish due in part to impact from the COVID-19 pandemic.
Life Industry: With pharmaceutical ingredients (active ingredients and intermediates) sales asa stepping stone, we will focus on advanced medicine.
We will sell Japan-made household products overseas.
Plastics: We will sell plastics to medical device manufacturers (e.g., for syringes).
Information & Electronics: Sales of materials used in protective masks grew.

Sales from principal business in the life scienceand medical fields (simple totals)(Billions of yen)

50.0

5.1
2.1

25.0

1.9
28.3

1.8

Plastics, Other
2.3

Life Industry
33.3

23.1

21.8

20.5

FY03/19(actual)

FY03/20(actual)

FY03/21(actual)

0.0
FY03/18(actual)Note: Results for past fiscal years include certain amounts that have been updated.

FY03/21(midium-term target)46

NC2020 Focus on Markets with Growth Potential and
Sectors That Have Yet to Be Developed
Principal initiatives in the agricultural field
Life Industry: We are developing the cultivation business, centered on the production of blueberries
and garlic in Hokkaido.
Full-scale shipment of blueberries and garlic will start in FY03/22 or later.
We are concentrating on sales of films for agricultural use (for anti-fogging, for example).

Plastics:

Information & Electronics: Sales of animal feed (imported grass) are increasing.
(Billions of yen)

6.0

Sales from principal business in the agricultural field (simple totals)

4.0

Plastics, OtherLife Industry
2.0

0.0

2.0
2.1

2.4

0.3
FY03/18(actual)

2.2

2.2

0.1

0.0

0.0

FY03/19(actual)

FY03/20(actual)

FY03/21(actual)0.8

Notes: Results for past fiscal years include certain amounts that have been updated.
The figures above do not include sales of frozen goods.

FY03/21(midium-term target)47

NC2020 Further Expansion and Deeper Involvement inOverseas Businesses
Progress at our compounds plant(sales to automakers in Mexico)◼ Status in FY03/21
In accordance with government guidance, operations at all plants in Mexico were suspended during April
and May 2020 in response to the COVID-19 pandemic. Consequently, demand fell and sales declined.
Plants resumed operations in June, but recovery in demand was slow. Operations related to new items
were delayed by one year.
Sales volume
FY03/18 (actual)

6,100 MT

FY03/19 (actual)

6,700 MT

FY03/20 (actual)

9,000 MT

FY03/21 (actual)

6,900 MT

FY03/22 (forecast)

10,600 MT

Company: IK Plastic Compound Mexico, S.A. de C.V.
Production capacity: 15,000 MT/year
Location: Silao, Guanajuato, central Mexico
Commenced operations in November 2013, with mass
production starting in September 201448

NC2020 Further Expansion and Deeper Involvement inOverseas Businesses
Progress at our compounds plant(sales to manufacturers of OA equipment in the Philippines)◼ Status in FY03/21
Plant operations were suspended during April and May 2020 in response to the COVID-19 pandemic.
Operations resumed in June and reached normal capacity in August. However, production declined in Q4
due to impact from COVID-19 variants and ongoing delays stemming from raw material and container
shortages.

Sales volume
FY03/18 (actual)

7,200 MT

FY03/19 (actual)

10,200 MT

FY03/20 (actual)

9,300 MT

FY03/21 (actual)

9,500 MT

FY03/22 (forecast)

11,500 MT

Company: IK PLASTIC COMPOUND PHILS. INC.
Production capacity: 10,800 MT/year
Location: Laguna Province, Philippines
Commenced business and production in July 201449

Annual Production Capacity for Plastic Compounds
China

Plastics Compound
Business Office (Japan)

12,600 MT/Y•••

VietnamShares information
Coordinates facilities andraw materials
Reduces costs bypurchasing in bulk

42,000 MT/Y

ThailandPhilippines

38,400 MT/Y

10,800 MT/Y
Building and dismantling plants in line with customers’
relocation strategies
Providing consistent service quality everywhere

Malaysia
27,600 MT/Y

Indonesia
37,200 MT/Y

183,600 MT/Y: 7 sites in 7 countries (As of March 31, 2021)

Mexico15,000 MT/Y50

NC2020

Establishment of Global
Human Resource Management✓ We conducted workshops at 36 locations in 14 countries to promote “IK Values.”
More than 700 local staff members participated.
✓ We continued to hold the Global Staff Meeting.
However, we cancelled the meeting scheduled for May 2021 due to the spread of
the novel coronavirus pandemic.
Number of overseas personnel in the trading division and(People) people on overseas assignment
1,000

Trading division

663

693

People on overseas assignment

737

764

783

787

500

93

95

94

90

93

92

0

Management philosophy workshop
at Inabata Europe GmbH

51
Note: The number of people on overseas assignment is as of the first day of the following month.

Board of Directors evaluation
Objective: To enhance corporate value by increasing the effectiveness andtransparency of the Board of Directors
FY03/19
Performed a self-evaluation of all directors and Audit & Supervisory Board
members using a survey format⇒ In April 2019, disclosed summary of evaluation and measures going forward

FY03/20
Performed a self-evaluation of all directors and Audit & Supervisory Board
members using a survey format⇒ In April 2020, disclosed summary of evaluation and measures going forward

FY03/21
Conducted third-party evaluations of all directors and Audit & Supervisory Board
members through questionnaires and interviews⇒ In April 2021, disclosed summary of evaluation and measures going forward
52

Earnings per Share
(Yen)
250

229.13232.57211.36200

188.82151.91150

137.01

156.25137.20109.92

100

50

（604）

（707）

（891）

（679）

（936）

（425）

FY03/14

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22（actual）（actual）（actual）（actual）（actual）（actual）（actual）（actual）（forecast）

0

Note: Figures in parentheses at the bottom of the bar graph indicate own-share purchases conducted during the year
(in millions of yen).

53

Company Overview
Name

Inabata & Co., Ltd.

Founded

October 1, 1890

Incorporated

June 10, 1918

Capital stock¥9,364 million

Representative

Head offices

Katsutaro Inabata, Director,
President

Osaka Head Office (1-15-14
Minami-semba, Chuo-ku, Osaka)
Tokyo Head Office (2-8-2
Nihonbashi-honcho, Chuo-ku,
Tokyo)

Employees

656 (4,203 on consolidated basis)

Issuable shares

200,000,000

Shares issued
and outstanding

63,499,227

Fiscal year

April 1 to March 31

Exchange listing

Tokyo Stock Exchange

Ticker

8098

Trading unit

100 shares

Shareholders
15,674Major
shareholders(top three andpercentage
ownership)

Sumitomo Chemical Co., Ltd.
(22.9%)The Master Trust Bank of Japan,
Ltd. (Trust Account) (6.6%)
Custody Bank of Japan, Ltd.
(Trust Account) (4.5%)

The Company owns 3,010,331 shares of treasury shares. This
shareholding is not shown in the table and has not been includedin the calculation of the shareholding ratio. However, shares of theCompany held by Custody Bank of Japan, Ltd. (Trust account E)
as a trust property under the Board Benefit Trust (BBT) system is
excluded from the number of the treasury shares, and hence, is
included in the calculation of the ratio.
(As of March 31, 2021)

54

 IR-related inquiries:

IR Department, Financial Management Office
Inabata & Co., Ltd.
E-mail: inabata-ir@inabata.com

Cautionary note regarding forward-looking statements
The data and future predictions contained in this document are forward-looking statements, based on
information available and judgments applicable at the time of the document’s release. The data andforecasts contained herein may include elements that are subject to change. This document and its
contents are no guarantee of future performance.
Presentation of numerical figures
Figures in this document presented in millions and billions of yen have been rounded down.
Consequently, certain discrepancies may exist between individual values and total values, or values
showing changes between sets of data.

55