Medium-term Management Plan
New Challenge 2026

Table of Contents

Medium-term Management Plan New Challenge 2026*

Quantitative Targets

02

Overview

07

Company-wide Growth Strategy

10Management Base Strategy

16

Financial Strategy

18

Sustainability Strategy

24

Digital Strategy

30

Segment Growth Strategy

35*Hereinafter, NC2026© 2024 Inabata & Co., Ltd.

1

Quantitative Targets© 2024 Inabata & Co., Ltd.

Company-wide Quantitative Targets（Billions of yen）

NC2026
FY03/24

FY03/25
Plan

FY03/26
Plan

FY03/27
Targets

Net sales

766.0

830.0

890.0

950.0

Operating profit

21.1

22.5

24.5

27.0

Ordinary profit

21.3

21.5

23.5

26.0

Profit attributable toowners of parent

20.0

17.0

17.5

19.0

10.5%

10% or more

10% or more

10% or more

0.06 times

0.5 times or less

0.5 times or less

0.5 times or lessApproximately

Approximately

Approximately¥145.00¥145.00¥145.00

ROE
Net debt/equity ratio
Equity ratio
Exchange rate (USD/JPY)© 2024 Inabata & Co., Ltd.

46.8%
¥144.59

50%

50%

50%

3

Segment Quantitative Targets（Billions of yen）

NC2026
FY03/25
Plan

FY03/24
OperatingprofitFY03/26
Plan

OperatingprofitFY03/27
Targets

OperatingprofitOperatingprofitSegment

Sales

Information &Electronics

239.1

6.90

256.0

6.55

283.0

7.20

312.0

8.45

Chemicals

112.6

2.78

124.8

2.85

132.0

3.05

139.0

3.25

Life Industry

53.5

1.48

61.0

2.20

66.8

2.60

72.8

3.10

Plastics

360.4

9.87

388.0

10.80

408.0

11.55

426.0

12.10

Other

0.1

0.13

0.2

0.10

0.2

0.10

0.2

0.10

Total

766.0

21.19

830.0

22.50

890.0

24.50

950.0

27.00

© 2024 Inabata & Co., Ltd.

Sales

Sales

Sales

4

Shareholder returns, etc.

Basic PolicyonShareholder
ReturnStrategic
shareholdings
reduction
policy*＊Announced in May 2022

© 2024 Inabata & Co., Ltd.

During NC2026,• The actual amount of dividends paid in the previous fiscal year will be used as
the lower limit for dividends per share, and the basic policy is to continuously
increase the dividends without reducing them (Progressive dividends).
• The target for total return ratio is roughly 50%.

 Further reduce strategic shareholdings in the medium to long term, cutting thebalance of strategic shareholdings at the end of March 2021 by about 80% by
the end of March 2027.
※Initial policy of「Reduce the balance of strategic shareholdings at the end of March 2021
by half during the three years of NC2023*」has already achieved.
*New Challenge 2023, a three years medium-term management plan from FY2021 to FY2023.

5

Capital Allocation［Three-year period from FY03/25 to FY03/27］

Cash flows fromoperatingactivities, etc.

Investments, etc.
About

50~60%

Approximately¥65 billion

Shareholder returns
About© 2024 Inabata & Co., Ltd.

40~50%

6

Overview© 2024 Inabata & Co., Ltd.

Overview
Long-term Vision “IK Vision 2030”

Medium-term Management Plan NC2026
Key themes: Accelerate growth through proactive investment
 Newly formulate a medium-term sustainability plan to address key management
priorities (materiality)

Company-wide Growth Strategy
Segment Growth Strategy
Management Base Strategy
Financial Strategy© 2024 Inabata & Co., Ltd.

Sustainability Strategy(including HR strategy)

Digital Strategy

8

(Reference) Long-term Vision “IK Vision 2030”

Reach consolidated net sales of¥1 trillion

Further enhancing multifaceted
capabilities (such as
manufacturing, logistics, andfinance) in addition to trading

IK Vision 2030

At least

1/3

Overseas businessof business fromsegments other than Information &Electronics and Plastics

70%

or more[Formulated in May 2017]© 2024 Inabata & Co., Ltd.

9

Company-wide Growth Strategy© 2024 Inabata & Co., Ltd.

Company-wide Growth Strategy Summary
Consolidated sales
Over ¥1 trillion≫ Approach: Expand earnings throughproactive investment≫ Business domains: Expand environmentrelated business and life industry
business such as food products

Business portfolio≫ Further develop key segments (Plastics,
Information & Electronics)≫ Establish earnings pillar on par with key
segments© 2024 Inabata & Co., Ltd.

Enhance multifaceted capabilities≫ Differentiate and boost earnings byenhancing multifaceted capabilities(especially in manufacturing andlogistics)

Overseas ratio
70% or more
≫ Further develop growth areas (especiallyin India, Mexico, and the Americas, inaddition to the existing Asia sites)≫ Move into untapped areas (e.g., Eastern
Europe)11

Company-wide Growth Strategy
Consolidated sales of ¥1 trillion or more

Expand earnings through proactive investment
Expand environment-related business and life industry businesssuch as food products‒ Expand earnings and boost profitability through proactive M&A deals andother investments‒ Focus management resources particularly on environment-related areas(renewable energy, recycling), automobile-related areas (for NEVs* andbatteries), and semiconductors and electronic components-related areas‒ Expand the food business (especially processing functions) and thepharmaceutical business*New Energy Vehicle© 2024 Inabata & Co., Ltd.

12

Company-wide Growth Strategy
Enhance multifaceted capabilities

Differentiate and boost earnings by enhancing multifaceted
capabilities (especially in manufacturing and logistics)‒ Further reinforce the Plastics business by expanding and enhancing
compounding capabilities through the establishment of a joint venturecompany‒ Differentiate by providing logistics functions (mainly overseas)© 2024 Inabata & Co., Ltd.

13

Company-wide Growth Strategy
Business portfolio

Further develop key segments (Plastics, Information & Electronics)‒ Accelerate expansion of environment/energy and semiconductor-related
businesses (Information & Electronics)~ Environmental
andenergyfield
sales:¥100
billion(targetaround2030)~ Environmental
andenergyfield
sales:¥100
billion(targetaround2030)‒ Accelerate expansion in the automotive field (Plastics)~ Automotive
resinsales:¥200
billion(targetaround2030)~ Automotive
resinsales:¥200
billion(targetaround2030)‒ Further develop display peripheral business (Information & Electronics)‒ Expand and enhance compounding capabilities (Plastics)

Establish earnings pillars on par with key segments‒ Expand our business domain and contribute to earnings quickly through
M&A, etc.
‒ Expand sales in food and other life industry fields‒ Expand Chemicals business overseas© 2024 Inabata & Co., Ltd.

14

Company-wide Growth Strategy
Overseas ratio of 70% or more

Further develop growth areas‒ Strong focus on India and Mexico‒ Further develop the Asia region‒ Expand business opportunities by responding to supply chain
reevaluations by global customers

Move into untapped areas (e.g., Eastern Europe)‒ Expand business in Eastern Europe‒ Explore expansion into untapped Global South countries (South Asia,
Cambodia, African countries, etc.)© 2024 Inabata & Co., Ltd.

15

Management Base Strategy© 2024 Inabata & Co., Ltd.

Management Base Strategy Summary

Financial‒ Further improve capital efficiency and focus on shareholder
returns, including paying progressive dividends‒ Implement measures to realize management conscious of costof capital and share prices (achieve a share price level that
regularly exceeds 1x P/B ratio as soon as possible)

Sustainability‒ Develop sustainability management as a foundation forcompany-wide promotion:≫ Set and monitor strategies and KPIs/targets in line withmateriality

Digital strategy‒ Enhance management information infrastructure and reinforce
Group-wide security© 2024 Inabata & Co., Ltd.

17

Management Base Strategy

Financial Strategy© 2024 Inabata & Co., Ltd.

Financial Strategy
Financial

Further improve capital efficiency‒

Maintain ROE of 10% or more by boosting business profitability and keeping shareholders'equity under control‒

Steadily implement policy of reducing strategic shareholdings and utilize proceeds from sales(for investment and shareholder return)

Focus on shareholder returns, including paying progressive dividends‒

Maintain total shareholder return ratio of approximately 50%‒

Continue paying progressive dividends‒

Continue flexible share repurchases and cancellations

Implement measures to realize management conscious of cost of capital andshare prices (achieve a share price level that regularly exceeds 1x P/B ratio as soon as
possible)‒

Maintain ROE above shareholders’ cost of equity (10% or more)‒

Enhance business value through steady implementation of growth strategies‒

Reduce cost of shareholders’ equity and foster growth expectations through enhanced
information disclosure and dialogue (boosting P/E ratio)© 2024 Inabata & Co., Ltd.

19

Financial Strategy Details

Capital efficiency

Soundness≫ Maintain ROE of 10% or more
≫ Generate investment funds and improve asset efficiency by
reducing strategic shareholdings≫ Maintain net D/E ratio of 0.5 times or less

Funding≫ Diversify funding methods (corporate bonds, etc.)

Shareholder returns≫ Maintain total shareholder return ratio of about 50%

Market evaluation≫ Achieve share price level that regularly exceeds 1x P/Bratio as soon as possible© 2024 Inabata & Co., Ltd.

20

Financial Strategy Details
Capital efficiency

ROE Maintain ROE of 10% or more
‒ Maintain ROE above shareholders’ cost of equity‒ Improve business profitability (shift to high value-added products, etc.)‒ Keep shareholders’ equity under control (flexible share repurchases andcancellations, maintain progressive dividends)‒ Reduce cost of shareholders’ equity (use debt, enhance information
disclosure and dialogue)

Reduce strategic
share holdings

Generate investment funds and improve asset
efficiency by reducing strategic shareholdings‒ Steadily implement the announced policy to reduce strategic shareholdings‒ Utilize proceeds from sale (allocate toward shareholder returns andinvestment instead of internal reserves)© 2024 Inabata & Co., Ltd.

21

Financial Strategy Details
Sound-ness

Maintain net D/E ratio of 0.5 times or less
‒ Maintain healthy financial standards‒ Use leverage based on funding demand

Funding

Diversify funding methods (corporate bonds, etc.)‒ Keep funding costs under control in response to high global interest rates‒ Explore sustainability finance‒ Reduce weighted average cost of capital© 2024 Inabata & Co., Ltd.

22

Financial Strategy Details
Shareholder returns

Maintain total shareholder return ratio of about 50%‒ Continue paying progressive dividends‒ Continue flexible share repurchases and cancellations

Market evaluation

Achieve share price level that regularly exceeds 1x P/B ratio
as soon as possible‒ Enhance business value and foster growth expectations through steady
implementation of growth strategies‒ Maintain a level of return on capital (ROE of 10% or more)© 2024 Inabata & Co., Ltd.

23

Management Base Strategy

Sustainability Strategy© 2024 Inabata & Co., Ltd.

Sustainability Strategy
Sustainability(1)Materiality-Creating sustainable value-

Contributing to a decarbonized and circular society; sustainable useof natural capital
Contributing to safety, security, and well-being
Providing value through resilience in procurement and supply
functions‒ Achieve carbon neutrality in business activities‒ Contribute to the global environment through the business‒ Ensure safe and secure quality through stronger management of compliancewith chemical substances regulations‒ Enhance resilience in procurement and supply functions by strengthening
supply chain management‒ Establish supply chains that respect human rights© 2024 Inabata & Co., Ltd.

25

Sustainability Strategy
Sustainability(2)Materiality-Strengthening the foundation for business continuity-

Respecting human rights in the spirit of love (ai) and respect (kei) andgrowing together with local communities
Fostering and strengthening the human capital driving the value
creation
Enhancing governance and risk management‒ Improve the well-being (state of being physically, mentally, and sociallysatisfied) of employees who support sustainable growth‒ Foster diversity and inclusion that makes the most of diverse individuals‒ Further advance health and productivity management‒ Focus on investment in human capital© 2024 Inabata & Co., Ltd.

26

Sustainability Strategy Details
Long-term Vision
Long-term Targets
GHG emissions (Scopes 1 and 2): Reduce emissions by 42% by FY2030, compared to FY2022 levels; and achievecarbon neutrality by FY2050.

Long-term Aims
≫ A decarbonized and circular society, and rich natural capital for society and the planet≫ A society in which human rights are respected, people feel safe and secure, and their well-being is maintained≫ A state of sustainable growth where the value provided by the Company, co-created with its business partners, isseen as indispensable to society≫ A situation where all employees in Japan and overseas, who are critical for sustainable growth, are physically andmentally healthy, work with enthusiasm in a style that fits the individual and in appropriate roles, and enjoy a highlevel of well-being

Relevant United Nations Sustainable Development Goals© 2024 Inabata & Co., Ltd.

27

Sustainability Strategy Details
Materiality: Long-term Vision, Strategy, KPIs, and Targets(1)Creating sustainable
value

Contributing to a decarbonized and circular society; sustainable use of natural capital
Contributing to safety, security, and well-being
Providing value through resilience in procurement and supply functions

Strategy

KPIs and Targets (April 2024 to March 2027)

Boundary‒ Achieve carbon neutrality in business activities≫ Reduce GHG emission (Scopes 1 and 2) by 25% compared to
FY2022 levels

Consolidated‒ Contribute to the global environment through thebusiness≫ Achieve net sales of 100 billion yen*1 for environment-related
business

Consolidated‒ Ensure safe and secure quality through stronger
management of compliance with chemical
substances regulations≫ Understand and share trends in chemical substances regulationsin Japan and overseas in a timely manner, and strengthen thecompliance management framework

Consolidated‒ Enhance resilience in procurement and supply
functions by strengthening supply chain
management≫ Clarify the Company’s position on responsible procurement, andcommunicate it internally and externally

Non
Consolidated‒ Establish supply chains that respect humanrights≫ Establish the human rights DD cycle*2 for selected operations as amodel case

Non
Consolidated*1. The expected ratio of environment-related business by field in the final fiscal year of the Sustainability Medium-term Plan 2026 is outlined below.
■Energy & power (renewable energy, batteries, etc.) : Approx. 70％ ■Resources & environment (sustainable materials, recycling, water, etc.) : Approx. 20％■Materials & chemicals, agriculture & food, transportation & logistics, and environmental certification : Approx. 10%*2. The human rights DD cycle refers to the following due diligence processes and supporting measures set out in OECD Due Diligence Guidance for Responsible Business Conduct:
1. Embed responsible business conduct into policies and management systems
2. Identify and assess actual and potential adverse impacts associated with the enterprise's operations, products or services
3. Cease, prevent and mitigate adverse impacts© 2024 Inabata & Co., Ltd.

4. Track implementation and results
5. Communicate how impacts are addressed
6. Provide for or cooperate in remediation when appropriate

28

Sustainability Strategy Details
Materiality: Long-term Vision, Strategy, KPIs, and Targets(2)Strengthening thefoundation for business
continuity

Respecting human rights in the spirit of love (ai) and respect (kei) and growing together withlocal communities
Fostering and strengthening the human capital driving the value creation
Enhancing governance and risk management

Strategy‒ Improve the well-being (state of being
physically, mentally, and socially satisfied)of employees who support sustainablegrowthKPIs and Targets (April 2024 to March 2027)
1. In employee engagement surveys, achieve an overall response rate of at least 90%, apositive response rate of at least 80% to the statements “I am satisfied to work at theCompany” and “I can identify with the Company’s mission, vision, and managerial
policy, and I want to work to achieve them,” and a positive response rate of at least
70% across all items*3

2. Maintain the ratio of mid-career hires at around 50%
3. Increase the ratio of male employees taking paternity leave to 100%
4. Continue to exceed the legal rate of employment for persons with disabilities
5. Encourage managerial appointments for local employees at overseas subsidiaries‒ Further advance health and productivity
management‒ Focus on investment in human capital

Consolidated

2. Expand the implementation boundary for the human rights DD digital survey to theGroup
1. Increase the ratio of women in managerial positions to at least 8% by March 2028, andto 10% by 2030

‒ Foster diversity and inclusion that makes
the most of diverse individuals

Boundary

1. Achieve a 100% rate of complete checkup
2. Maintain comprehensive health risk found by stress checks at current levels*4
1. Every year, spend more on education and training costs*5 per employee than in theprevious year
2. Maintain the ratio of employees with overseas posting experience at around 40%

1-4
Non
Consolidated
5Consolidated
NonConsolidated
NonConsolidated*3. The positive response rate in employee engagement surveys refers to—of employee responses on the five-point scale (5. Fully agree; 4. Agree; 3. Neither agree nor disagree; 2. Disagree; 1. Fully disagree)—the proportion of
responses 4 and 5, which are the positive responses.
Note: We have corrected an error in the original English translation.(June 5,2024)*4. The rate of complete checkup refers to the proportion of employees who were advised to undergo a complete checkup after the initial health check and actually followed the advice. Comprehensive health risk is an indicator for stressevaluation provided by the Ministry of Health, Labour and Welfare to comprehensively assess to what degree the workplace environment impacts on employee health. The risk is calculated by using four criteria obtained from stresschecks: psychological burden of work (volume), degree of discretion at work, degree of support from managers, and degree of support from colleagues. The national average is calculated as 100: workplace health risk is high if thevalue exceeds 100, and low if the value falls below 100. The value at the Company is currently below 100.
*5. Education and training costs refer to the expenses spent on group training, external training, video learning, and so on at Inabata on a nonconsolidated basis. For FY2022, the costs were 50,776 yen per person. (FY2023 results will be
disclosed in the summer of 2024.)© 2024 Inabata & Co., Ltd.

29

Management Base Strategy

Digital Strategy© 2024 Inabata & Co., Ltd.

Digital Strategy
Digital strategy

Enhance management information infrastructure and reinforce Groupwide security‒ Revamp core systems and strategically leverage Group-wide sales
information~ Fully support front-line sales activities with digital technology to
generate new business and maintain and expand existing business‒ Establish a scheme to strengthen security and deploy it across theGroup~ Complete transfer of IT infrastructure to cloud environment andfurther enhance security for all Group companies‒ Improve productivity by leveraging in-house generative AI services, etc.
~ Enhance digital marketing and productivity by leveraging
unstructured data using OpenAI© 2024 Inabata & Co., Ltd.

31

Digital Strategy Details
Core system renewal project

Facilitate smooth project execution and go-live of new core system‒

Build next-generation core systems for further DX promotion‒

Further support for new work styles (paperless, telecommuting, mobile phone access)‒Support visualization of development assets (SBOM*1) for new core system*1 SBOM : Acronym for software bill of materials

Strategic use of Group-wide sales information

Initiatives to promote data-driven management thatleverages management base data‒

Launch operations of CDAM*2, a data management platform‒

Transform into a data-driven company that makes decisions based on Group-wide data
platform‒

Create new business by enhancing digital marketing that leverages the Group-wide data
*2 CDAM : Acronym for Consolidated Performance Data Management; a global management base© 2024 Inabata & Co., Ltd.

32

Digital Strategy Details
Laterally deploy IT infrastructure that supports the entire Group

Laterally deploy infrastructure base construction for Groupwide optimization‒

Provide centralized management of cloud environment construction and operation for smallGroup sites.

‒

Complete migration of all Group site systems to cloud environment (consolidated Group
companies)*3*3 Completed cloud migration at about 83% of consolidated subsidiaries. Implemented overall management of system maintenance, backup, and BCP
response under the leadership of the headquarters.

Further enhance security measures for the entire Group

Further enhance and promote security measures across the entire Group‒

Conduct periodic security audits, guidance, and support for all Group companies‒

Conduct third-party security assessments (e.g., vulnerability assessments) on an ongoing basis‒

Laterally deploy CSIRT operation (EDR/SOC)*4 to small Group sites*4 CSIRT : Acronym for Computer Security Incident Response TeamEDR : Acronym for Endpoint Detection and Response / SOC : Acronym for Security Operation Center© 2024 Inabata & Co., Ltd.

33

Digital Strategy Details
Improve productivity by leveraging generative AI services, etc.

Verify suitability of using generative AI for business applications
and implement it‒

Improve work efficiency by using M365 Copilot‒

Enhance marketing activities by extracting customer insights from unstructured data
(e.g., business inquiries, e-mails, daily business reports, etc.) using OpenAI© 2024 Inabata & Co., Ltd.

34

Segment Growth Strategy© 2024 Inabata & Co., Ltd.

Segment Growth Strategy
Classified strategies for each segment under Core, Growth, and Next.
In addition, we identified key areas to allocate management resources.

Core≫ Further develop core businesses

Growth≫ Bolster initiatives and accelerate profitability ingrowth areas

Next≫ Explore promising areas and regions

Accelerate
growthInvestmen
ts, etc.

© 2024 Inabata & Co., Ltd.

≫ Accelerate growth through focused allocation ofmanagement resources36Segment Growth Strategy
Information & Electronics Segment

Core≫ Laterally develop the display business and expand related business≫ Improve profitability of consumer inkjet-related business
Pick Up≫ Accelerate expansion of environment and energy field—AimingAimingforforsalessalesofof¥100¥100billion
billionaroundaround2030
2030~

Growth≫ Reinforce semiconductor/electronic component related business (including
equipment business)≫ Expand industrial inkjet-related business (e.g., for textiles)

Next

Investmen
ts, etc.

© 2024 Inabata & Co., Ltd.

≫ Initiatives for environmentally friendly materials (bio-dyes, hydrogen and fuelcell materials, etc.)≫ Initiatives for IoT-related products≫ Environment and energy field≫ Semiconductor-related37

Segment Growth Strategy
Information & Electronics Segment
Accelerate expansion of environment and energy field— Aiming for sales of ¥100 billion around 2030

Pick Up

Environment & energy field sales(Billions of yen)
120.0

Solar cell-related
Rechargeable battery-related
Biomass power generation related
Other

80.0

7.5

40.0

7.0
FY2020© 2024 Inabata & Co., Ltd.

13.7

FY2021

21.6

13.7

20.4

FY2022

5.0
45.0

2.6

100.0

40.0

22.3

1.7
2.2
8.5

0.0

10.0

54.0

26.1

FY2023

FY2026
Plan

Around2030
Targets

38

Segment Growth Strategy
Chemicals Segment

Core

GrowthNext

Investmen
ts, etc.

© 2024 Inabata & Co., Ltd.

≫ Expand sales of resin materials and additives, coating materials, andconstruction materials≫ Achieve synergies with Maruishi Chemical Trading (coating materials, paints,
etc.)≫ Expand business in materials in the EV field (batteries, motors, display
materials)≫ Bolster overseas development (expand sales of various products using global
logistics functions)≫ Take on initiatives for biodegradable raw materials and recycled materials≫ Capture new themes by enhancing planning and development capabilities≫ EV field≫ Functional chemicals, coating materials≫ Enhance logistics and processing functions

39

Segment Growth Strategy
Life Industry Segment

Core

GrowthNext

Investmen
ts, etc.

© 2024 Inabata & Co., Ltd.

≫ Expand sales areas of pharmaceuticals and consumer goods (especiallyoverseas)≫ Expand sales to conveyor-belt sushi chains by leveraging processing
capabilities≫ Expand e-commerce by achieving synergies with Daigo Tsusho, etc.
≫ Focus on growth areas such as regenerative medicine, nucleic acids andbiopharmaceuticals≫ Make use of natural raw materials (cosmetics, agrochemical raw materials, etc.)≫ Explore business opportunities to reduce CO2 emissions and sludge by using
microorganism formulations≫ Expand upstream and downstream areas in food and agriculture (especiallyprocessing functions)≫ Explore growth areas such as regenerative medicine

40Segment Growth Strategy
Plastics Segment
Pick UpCore≫ Accelerate global expansion in the automotive field~—AimingAimingforforsalessalesofof¥200¥200billion
billionaroundaround2030
2030≫ Strengthen Group company collaboration in the film and sheet-related business

Growth≫ Enhance compounding capabilities— Strengthen technological development capabilities, streamline production,and enhance quality control by establishing a joint venture company≫ Grow recycling business and green business≫ Expand EV business in the automotive field≫ Acquire more non-Japanese customers

Next

Investmen
ts, etc.

© 2024 Inabata & Co., Ltd.

≫ Develop untapped overseas regions (South Asia, Cambodia, African countries,etc.)≫ Explore the chemical recycling business≫ Plastic compounds business≫ Recycling business41

Segment Growth Strategy
Plastics Segment
Pick Up

Accelerate global expansion in the automotive field— Aiming for sales of ¥200 billion around 2030
Sales of resins for automotive industry(Billions of yen)
250.0

200.0

200.0

150.0

98.7

100.0

113.3

131.4
• Expand global network• Identify and capture next-generation
trends70.0• Acquire more non-Japanese customers

50.0

0.0

• Expand in high-growth regions (India,
Mexico, etc.)
FY2020© 2024 Inabata & Co., Ltd.

FY2021

FY2022

FY2023Around2030
Targets

42