IR Briefing for 1H
the Fiscal Year Ending March 2021
Progress in the Final Year of NC2020,
Our Medium-Term Management Plan

Inabata & Co., Ltd.
Katsutaro Inabata, Director, President
December 2, 2020
Inabata & Co., Ltd. held the financial results briefing for 1H the fiscal year
ended March 2021 via live broadcast on December 2.

1

Contents

Page
3

Company Overview

5

New Challenge 2020 (NC2020),
Our Medium-Term Management Plan

8

Progress in the Final Year of NC2020

18

Returning Profits to Shareholders

21

Reference Materials

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

6%
Chemicals

12%
FY03/20 Plastics
Net sales: 45%¥600.3 billion
Information &Electronics

37%

4 New Challenge 2020 (NC2020),
Our Medium-Term Management Plan

5

Quantitative Targets of NC2020

NC2020, a four-year medium-term
management plan ending in FY03/21
Quantitative targets

FY03/21Net sales¥730.0 billion

Operating profit¥15.5 billion

Ordinary profit¥16.0 billion

Profit attributable toowners of parent¥12.0 billion

Net D/E ratio

0.4x or less

Assumed exchange rate

Note: Net D/E ratio = (interest-bearing debt – cash and deposits) / equity capital

USD1 = JPY110

6

Key
Initiatives for NC2020
medium-term
management plan

ＮＣ2０2０

重点施策

1

Further expansion and deeper involvement in overseas businesses

2

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

・Continue to focus on the automotive, life science and medical, and environment and energy sectors
・Launch new initiatives in the food business, including agriculture

3

Further enhancement of information infrastructure essential for global
management

・Prioritize infrastructure that is best for the entire Group・Enhance and standardize overseas business management

4

More proactive investment to expand the trading business・Make minority investments, primarily to expand the trading business・Consider majority investments, but with limited risk and scale

5

Continual review of assets and enhancement of financial standing

6

Establishment of global human resource management7 Progress in the Final Year of NC2020,
Our Medium-Term Management Plan

8

Operating Environments in 1H FY03/21:
Information & Electronics (FPD Market)
 Panel manufacturers in China continued operating at high capacity rates despite impact
from the novel coronavirus pandemic.
 As TVs continued to grow larger, demand for LCD panel areas also grew.
 Sales of organic electroluminescent panels for smartphones continued to grow, but thisgrowth was limited when measured in terms of area.
LCD panels are expected to continue commanding a large share of the FPD market interms of panel area for the foreseeable future.
Reference: Projected change in the ratio of LCD and
OLED in FPD by panel area
100% 3%

3%

4%

4%

5%

6%

7%

97%

97%

96%

96%

95%

94%

93%

2018

2019
2020
2021
2022
2023
(estimate) (forecast) (forecast)(forecast)

Reference: Projected increase in the area of large LCD panels

YoY increase (%)

2019

2020
(estimate)2021(forecast)

104％

101％

104％

0%
2017

LCDs

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

OLEDs

9

Operating Environments in 1H FY03/21: Plastics
 Plastics prices fell year on year due to stagnant naphtha prices.
 In Q1, demand from end users declined due to the global spread of COVID-19.
 Demand began to recover from the latter half of Q2, but extent of recovery varied by region
and end user.
Demand in China and for automotive-related use recovered at an early stage, but demand inSoutheast Asia and for office automation and construction materials-related use seemed slow
to pick up.

（ USD/barrel ）WTI crude oil prices, Domestic naphtha prices

60,0008070

1H FY03/20

60

45,40044,8001H FY03/21

40,000504030,20030
20（ JPY/kl ）25,000Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

WTI crude oil prices (USD)

20,000

Domestic naphtha prices (JYP)10

Progress in the Final Year of NC2020


Due in part to the COVID-19 pandemic, achieving final year sales andprofit targets would be difficult.
Inabata is maintaining a highly stable financial base.

(Billions of yen)

Net sales

1H FY03/20
actual1H FY03/21
actual

NC2020
Final year
targets(B)

FY03/21
forecast(A)

Projected
achievement
versus targets(A)/(B)%

307.6

267.1

550.0

730.0

75%

Operating profit

7.1

6.2

12.0

15.5

77%

Ordinary profit

7.9

6.9

12.7

16.0

79%

Profit attributable toowners of parent

6.7

5.8

10.5

12.0

88%

Net debt/equity ratio

0.20

0.08

－

0.4x or less

Strong

45.9%

49.8％

－

－

－

USD1=¥108.60

USD1=¥106.93

USD1=¥107.00

USD1=¥110.00－

Equity ratio
Exchange rate

Notes: Net debt/equity ratio = (Interest-bearing debt − cash and deposits) / equity capital
FY03/21 forecast figures are those announced on November 5, 2020.

11

NC2020 Progress by Segment: (1) Information & Electronics(Billions of yen)(Billions of yen)

8.00

1H FY03/20
actual1H FY03/21
actualOperatingprofit2.41

3.33

Operating profit
margin

2.2％

Sales

110.4

Operating profit

FY03/21
forecast(A)

NC2020
Final year
targets(B)

Projected
achievement
versus targets(A)/(B)%

5.30

4.40

120%

3.1％

2.5％

1.7％

―

106.3

208.0

261.0

80％

NC2020(Forecast)

5.30
4.40

4.48
4.00

3.33
2.41

 Progress versus operating profit target in NC2020: On track
0.00
FY03/20
1H(Actual) FY03/21(Actual)

•
•

Sales

400.0

Main reasons for differences between actual andtarget figures

FY03/21(Goal)

NC2020(Forcast)

218.6

261.0

208.0

•

106.3

•

200.0
110.4

•

•
0.0
FY03/20(Actual)1H
FY03/21(Actual)

FY03/21(Goal)•

Increase in FPD material sales in China
Strong performance by polarizing film
materials
Reversal of allowance for doubtful
accounts at a European subsidiary
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)

COVID19

Operatingprofit

Sales

＋
＋
＋
－
－
＋

＋

＋

－

－

－

Note: Excluding 740 million yen in reversal of allowance for doubtful accounts, OPM in the Information & Electronics segmentin 1H FY03/21 would have been 2.4%.

12

NC2020 Progress by Segment: (2) Chemicals(Billions of yen)

1H FY03/20
actual1H FY03/21
actualOperatingprofit

0.67

0.41

0.85

2.20

39％

1.8％

1.4％

1.4％

2.3％

―

0.85

Operatingprofit margin

0.41

Sales

36.7

30.7

61.9

95.7

65％

(Billions of yen)
Operating profit

2.50
2.00
1.50
1.00

2.20

NC20201.20(Forecast)

0.67

0.50



0.00
FY03/20(Actual)1H
FY03/21(Actual)

120.0

80.0

74.1

40.0

•
95.7

•

(Forecast)

•
•

30.7

•
0.0
FY03/20(Actual)1H
FY03/21(Actual)Projected
achievement
versus targets(A)/(B)%

Progress versus operating profit target in NC2020: Substantially below target
Main reasons for differences between actual andtarget figures

61.9
36.7

NC2020
Final year
targets(B)

FY03/21(Goal)

Sales

NC2020FY03/21
forecast(A)

FY03/21(Goal)

Sluggish performance in the former
Housing & Eco Materials segment
Sluggish export sales in the former Housing& Eco Materials segment
Slow sales of heat-dissipating productsReview of transactions at a European
subsidiary
Low overall sales of products including
those for use in construction materials,
communication paper, resin materials,
paint, and ink

COVID
-19

－

Operatingprofit

Sales

－

－

－

－

－
－

－
－

－

－

13

NC2020 Progress by Segment: (3) Life Industry(Billions of yen)(Billions of yen)
Operating profit
3.00

1H FY03/20
actual1H FY03/21
actualOperatingprofit

0.60

0.53

1.55

2.80

55％

Operatingprofit margin

3.3％

3.2％

4.0％

4.3％

―

Sales

18.3

16.7

39.0

65.0

60％

2.80

FY03/21
forecast(A)

NC2020(Forecast)

2.00

1.55
1.16
1.00

0.60

0.53

FY03/20(Actual)1H
FY03/21(Actual)

0.00

80.0

Sales

FY03/21(Goal)



NC2020••(Forecast)

40.0

36.9

39.0

18.3

16.7

•
•
•
•

0.0
FY03/20(Actual)1H
FY03/21(Actual)

FY03/21(Goal)•

Projected
achievement
versus targets(A)/(B)%

Progress versus operating profit target in NC2020: Substantially below target
Main reasons for differences between actual andtarget figures

65.0

NC2020
Final year
targets(B)

Pharmaceutical ingredients (supply resumption
delays at suppliers)
Same as above (self-imposed restraints on
outpatient hospital visits, decline in the use of
influenza drugs)
Earnings improvement at a French pharmaceutical,
cosmetics-related subsidiary
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 foodservice facilities)
Same as above (growth in fishery product sales toconveyor-bent sushi restaurants)

COVID19

Operatingprofit

Sales

－

－
－

－
－

＋
－
－

－
－

－
＋

－
＋

－

14

NC2020 Progress by Segment: (4) Plastics(Billions of yen)(Billions of yen)
8.00

1H FY03/20
actual1H FY03/21
actualOperatingprofit

3.36

1.86

4.20

5.90

71％

Operatingprofit margin

2.4％

1.6％

1.7％

1.9％

―

Sales

142.0

113.2

241.0

308.0

78％

Operating profit

NC2020
Final year
targets(B)

NC2020
6.23

5.90(Forecast)

4.20
4.00

FY03/21
forecast
(A)

3.36

1.86

0.00
FY03/20(Actual)1H
FY03/21(Actual)

400.0

FY03/21(Goal)

Projected
achievement
versus targets(A)/(B)% Progress versus operating profit target in NC2020: Below target
Main reasons for differences between actual andtarget figures

COVID19

Operatingprofit

Sales

Sales

NC2020
270.3

308.0

(Forecast)

•

241.0
200.0

142.0

•
•

•

113.2
•
•

0.0
FY03/20(Actual)1H
FY03/21(Actual)

FY03/21(Goal)••

Drop in plastics prices
Increase in the share of sales from highperformance resins
Struggling performance at the Mexico-based
compounds plant
Decrease in commodity resin sales (construction
materials and electric cables-related)
Same as above (for use in PCs and game
consoles)Decrease in high-performance resin sales(automotive-related)
Same as above (office automation and home
appliance-related)
Decrease in sporting goods-related sales

－

－

＋
－

－

－

－

＋

＋

＋

－
－
－

－
－

－
－

－

－
15

NC2020 Investment Status

More proactive investment to expand the trading business(Billions of yen)
FY03/18
actualFY03/19
actualFY03/20
actual1H
FY03/21
actual

NC2020period(FY03/18
onward)Growthinvestment

3.86

2.31

1.85

0.37

8.41

Fixed
investment

1.59

2.03

2.01

0.83

6.45

Total

5.45

4.34

3.86

1.20

14.86

 Major growth investments in 1H FY03/21• Plastics segment:¥0.17 billion for facilities (related to inflation molding)¥0.07 billion for facilities (related to compound)• Life industry segment:¥0.05 billion for facilities (related to food-related business)

16

Projected Impact of COVID-19 on Businesses in FY03/21
Segment

Information &Electronics

Business field
Liquid crystal displayrelated business

The COVID-19 pandemic has had no negative impact, as the projected shipment volume of TV
sets for the full year is 228 million units (+2% YoY). Shipment volume of smartphones is expected
to decline only by a limited margin (-5% YoY) to 1.3 billion units.
Inabata expects robust sales of LCD panel materials in China.

OA-related businessDespite a one-time increase in demand for inkjet printers for telework, the Company expects the
downturn in industrial sectors due to the economic recession to have a significant impact on its
performance. Declines in shipment volumes of consumable materials for office multifunction
printers are expected to continue.

Overall

Sales of raw materials for automotive use are robust in China and recovering in Southeast Asia.
Construction materials, raw materials for resins, packaging, and ink-related sales have bottomedout but recovery has been slow.

Life science-related
business

Inabata forecasts lower sales of intermediates for influenza drugs and raw materials forcosmetics-related use, including patches for non-life threatening conditions. It expects no impact
on insect repellent and insecticide-related sales, but expects delays in executing plans in theregenerative medicine area.

Food-related business

The Company expects declines in sales of fishery products for the restaurant and food service
industries, as well as in export sales of Japanese food ingredients due to lockdowns and restraints
on going out to eat overseas. Sales of fishery products for use in conveyor-belt sushi restaurants
are expected to exceed pre-pandemic levels. Overseas sales of frozen fruits are on an uptrend
owing to stay-at-home demand.

Commodity resins

Automobile-related sales in Japan have been on a recovery track since August, but recovery isdelayed for construction, civil engineering, and electric cables-related sales. Daily goods-related
sales continue to be strong. Sales of food packaging materials increased in Q1, but seem to be
slowing down since Q2.

High-performance resins

Office automation-related sales are on a recovery trajectory in Southeast Asia (e.g., thePhilippines and Thailand). Sales of resins for automotive use recovered in China ahead ofanywhere else, got on a recovery track in July in Japan, and are also recovering in the US andIndia; however, sales seem to be slow to recover in Southeast Asian countries.

Information &Electronics

ChemicalsLife industry

Life industry

Plastics

Plastics

Major impacts on FY03/21 forecast17 Returning Profits to Shareholders

18

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

interimyear-end¥20 (actual)¥33 (forecast)

Annual dividend: ¥53 (forecast)* Total return ratio (%) = (dividend amount + amount of treasury shares acquired) / consolidated net income x 100

19

Returning Profits to Shareholders

Annual dividends per share and indicators of shareholder return
(Yen)
60

Dividend

Dividend payout ratio

Total return ratio

53

53

80.0%

48
40

30

33

36

40

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%
36.4%

20

0

40

21.9%

(439)

28.1%

40.0%
Approx.
30–35%
target

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. 20

 Reference Materials

21

Content of Reference Materials
Page
23
24
25
27
29
30
31
35
37
38
39
40
41

Positioning of NC2020, Our Medium-Term Management Plan
IK Vision 2030, Our Long-Term Vision
Operating Environment and Business Strategies under NC2020
Sales and Operating Profit by Segment under NC2020
Net Sales and Operating Profit
Overseas Sales and Operating Profit
Focus on Markets with Growth Potential and Sectors That Have Yet to
Be Developed
Further Expansion and Deeper Involvement in Overseas Businesses
Annual Production Capacity for Plastic Compounds
Reinforcement of Governance
Establishment of Global Human Resource Management
Earnings per Share
Company Overview

22

(Reference) Positioning of NC2020,
Our Medium-Term Management PlanIK Vision 2030 was drawn up in May 2017, prior to NC2020.
MissionPeople 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 around 2030)

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

23

(Reference) 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 201724

(Reference) Business Strategies under NC2020(1) Operating Environment
Segment

Operating environment

Information &Electronics• The liquid crystal business is poised to increase slightly in the medium term; panel display production
continues shifting to China.
• The photocopier and printer industries are mature, but room for growth exists with respect to industrial
applications.
• In solar power generation, expectations for Japan are low, but growth persists overseas.

Chemicals• The existing chemicals market in Japan has changed little, and the market for products handled by
Inabata is limited.
• Foreign chemical manufacturers are tending to have trading companies handle their marketing inJapan.

Life Industry• In pharmaceuticals, markets for new drugs and regenerative medicine have been growing at amoderate pace.
• In household products, the Japanese market is saturated while markets in emerging economies are
expanding.
• In food products, industrialized nations are becoming more health- and safety-conscious, while foodconsumption is increasing in emerging economies.

Plastics• Customers and suppliers are becoming increasingly international.
• Companies are opting to channel business to trading companies that can operate globally.

Housing &Eco Materials• The number of housing starts is expected to keep decreasing.
• The market for renovations is expanding.
• Increasingly, major homebuilders and housing equipment manufacturers are entering overseas
markets.

Formulated May 2017
Note: In FY03/20, the Housing & Eco Materials segment was combined with the Chemicals segment.

25

(Reference) Business Strategies under NC2020(2) Portfolio Policy
Segment

Operating environment

Information &Electronics• We will work to maintain steady profits in the liquid crystal display business, which will remain amainstay business while the medium-term plan is in effect.
• We will work to expand new businesses, due to expectations of slowing growth in our current mainstay
businesses over the long term.

Chemicals• We aim to achieve deeper penetration in the automotive parts industry.
• We will expand the coating business with a focus on the automotive industry.
• We will enhance initiatives with foreign chemical manufacturers.

Life Industry• We will develop promising opportunities in the new drugs and raw materials businesses, and focus on
leading-edge medical fields.
• In household and food products, we will work to increase sales, driven by overseas and otherexpanding markets.
• In food products, we will continue expanding into the production and processing businesses.

Plastics• We aim to expand sales of plastics, leveraging the plastic compounds business.
• We will focus on the automotive sector, particularly the North American market.

Housing &Eco Materials• We will expand our sales to overseas markets.
• We will focus on non-housing fields of business.

Formulated May 2017
Note: In FY03/20, the Housing & Eco Materials segment was combined with the Chemicals segment.

26

(Reference) Sales by Segment under NC2020(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

1,200.0

Housing & Eco Materials

Other

IK Vision 2030

(IK Vision 2030)

1,000.0

1,000.0

New Challenge 2016

NC2020

800.0

600.0

400.0

200.0

730.0

572.1
24.2 0.5

0.3
634.7
621.1
586.6
600.3
577.0
0.1 24.1 0.1
25.1
0.1 308.0
0.1
24.8 0.1 25.0

250.4

251.1

251.8

286.9

34.6
52.8

41.0
48.1

40.4
48.0

42.3
51.5

39.0
53.4

36.9
74.1

95.7

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

Future(actual)(actual)(actual)(actual)(actual)(actual) (medium-term target)(around 2030)

300.0

270.3
65.0

0.0

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

27

(Reference) Operating Profit by Segment under NC2020(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

Housing & Eco Materials

Other

27.50

IK Vision 2030

230～240(IK Vision 2030)

22.50

New Challenge 2016

NC2020

17.50

15.5
14.0
0.20
0.10 13.2
0.04
0.13 5.90
6.34
6.23

12.6

12.50

7.50

2.50

-2.50

Operatingprofitmargin

0.14
11.3
10.7
0.26
0.14
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

2.80
1.16
1.20

2.20

4.81

4.48

4.40

4.48

3.83

3.99

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

Future(actual)(actual)(actual)(actual)(actual)(actual) (medium-term target)(around 2030)

1.9%

2.0%

2.2%

1.0%

2.2%

1.92
0.25 (2.04)

2.2%

2.1%

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

28

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

(Net sales: Billions of yen)

35.0

1,200.0(IK Vision 2030)

1,000.0 30.0

1,000.0

Net sales

FY03/21 (forecast)
Net Sales¥550.0 billion
Operating profit ¥12.0 billion

Operating profit

25.0(Medium-term target)

800.0

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)

29

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

(Operating profit: Billions of yen)800

Net sales

Operating profit(IK Vision 2030)

18

600

14
10

400

7.3
6.1
3.3

200
1.2

1.6

3.6

4.2

3.5

2.3

4.9
3.7

312.9 327.7

84.1

0
JPY
per
USD

119.9

107.1

110.2

104.2

150.5

170.9

159.3

152.2

6

340.6

305.4
284.3

72.4

6.9
316.3

3.9

1.6 2.0

185.0

5.1

5.8

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)

NC202030

(Reference) Focus on Markets with Growth Potential and
Sectors That Have Yet to Be Developed
Principal initiatives in the automotive field
In 1H FY03/21, sales in Plastics and Chemicals were down due to the impact of pandemic.
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)

100.0

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

75.0
10.1
50.0

11.9

10.1

Chemicals, Other

10.5

Plastics

25.0

46.5

52.6

56.6

4.8

58.2

23.3
0.0
FY03/18(actual)

FY03/19(actual)

FY03/20(actual)Note: Results for past fiscal years include certain amounts that have been updated.

1H FY03/21(actual)

FY03/21(medium-term target)31

【重点施策
成長が見込める市場・未開拓分野への注力】(Reference)
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.

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

30.0

20.0

3.4
Chemicals, Other
Information & Electronics

10.0

2.6

2.3
2.7

8.5

8.0
4.5
FY03/19(actual)

1.4
3.9

0.0
FY03/18(actual)18.6

FY03/20(actual)1H FY03/21(actual)Note: Results for past fiscal years include certain amounts that have been updated.

FY03/21(medium-term target)32

【重点施策
成長が見込める市場・未開拓分野への注力】(Reference)
Focus on Markets with Growth Potential and

Sectors That Have Yet to Be Developed
Principal initiatives in the life science and medical fields
In 1H FY03/21, overall sales were down in the wake of the pandemic.
Life Industry: With pharmaceutical ingredients (active ingredients and intermediates) sales as a stepping stone, wewill 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).
(Billions of yen)

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

50.0

5.1
2.1
25.0

2.4

28.3

Plastics, Other
2.2

Life Industry
33.3

23.1

21.7

1.0
9.0

0.0
FY03/18(actual)

FY03/19(actual)

FY03/20(actual)Note: Results for past fiscal years include certain amounts that have been updated.

1H FY03/21(actual)

FY03/21(medium-term target)33

【重点施策
Focus
on markets
with growth
sectors and(Reference)
Focus
on Markets
withpotential
Growthand
Potentialthat have yet to be developed】

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

2.0
2.1

0.0

2.1

2.2

1.8
0.8

0.3

0.1

0.0

0.0

FY03/18

FY03/19(actual)

FY03/20

1H FY03/21

FY03/21(actual)(actual)(medium-term target)(actual)Note: Results for past fiscal years include certain amounts that have been updated.

34

(Reference) Further Expansion and Deeper Involvement inOverseas Businesses
Progress at our compounds plant(sales to automakers in Mexico)
 Impact from the spread of the novel coronavirus pandemic in 1H FY03/21
In April and May, operations at all plants in Mexico were suspended under
government guidance. Sales slumped as demand declined. Operations resumed in
June, but recovery in demand has been gradual.
FY03/18
FY03/19
FY03/20

Sales of 6,100 tons
Sales of 6,700 tons
Sales of 9,000 tons

1H FY03/21
FY03/21

Sales of 2,500 tons
Forecast sales of 7,300 tons
Company: IK Plastic Compound Mexico, S.A. de C.V.
Production capacity: 15,000 tons/year
Location: Silao, Guanajuato, central Mexico
Commenced operations in November 2013, with mass
production starting in September 201435

(Reference) Further Expansion and Deeper Involvement inOverseas Businesses
Progress at our compounds plant(sales to manufacturers of OA equipment in the Philippines) Impact from the spread of the novel coronavirus pandemic in 1H FY03/21
Operations were suspended in April and May. Operations resumed in June, but
customer company plants were not operating at full capacity to prevent the spreadof the pandemic.
FY03/18
Sales of 7,200 tons
FY03/19
Sales of 10,200 tons
FY03/20
Sales of 9,300 tons
1H FY03/21
FY03/21

Sales of 3,700 tons
Forecast sales of 10,000 tons

Company: IK PLASTIC COMPOUND PHILS. INC.
Production capacity: 10,800 tons/year
Location: Laguna Province, Philippines
Commenced business and production in July 201436

(Reference) 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 September 30, 2020)

Mexico15,000 MT/Y37

(Reference) Reinforcement of Governance

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
Third-party evaluation by surveys and interviews are under way.
38

(Reference) Establishment of Global
Human Resource Management

Expanding human resources and accelerating training efforts toenhance quality
 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 2020 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

769

500

93

95

94

90

93

91

0

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

Management philosophy workshop
at Inabata Europe GmbH

39

(Reference) Earnings per Share

(Yen)
240

211.36200

188.82174.43160

151.91137.01

120

156.25137.20109.92104.29

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 the year (inmillions of yen).

40

(Reference) 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

659 (4,072 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
17,158Major
shareholders(top three andpercentage
ownership)

Sumitomo Chemical Co., Ltd.
(22.9%)The Master Trust Bank of Japan,
Ltd. (Trust Account) (5.2%)
Custody Bank of Japan, Ltd.
(Trust Account) (2.9%)

The Company owns 3,010,320 shares of treasury stock. This
shareholding has not been included in the calculation of theshareholding ratio. However, 100,000 shares of the Company
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 September 30, 2020)41 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.

42