IR Briefing for
the Fiscal Year Ended March 2024
Achievement of Targets in NC2023, Our Previous Medium-Term Management Plan,
And Summary of NC2026, Our New Medium-Term Management Plan

June 3, 2024

Inabata & Co., Ltd.

Katsutaro Inabata, Director, President
Inabata & Co., Ltd. held the financial results briefing for the
fiscal year ended March 2024 via live broadcast on June 3, 2024.

Contents

Inabata’s Strengths… P2

Achievement of Targets in “New Challenge 2023 *1 ”, Our… P 10Previous Medium-Term Management Plan
Summary of “New Challenge 2026 *2 ”, Our New Medium-… P 14

Term Management Plan
Shareholder returns… P 34

Measures to Realize Management Conscious of Cost of… P 37

Capital and Share Prices
Reference Materials… P 46*1 Hereinafter, NC2023*2 Hereinafter, NC2026© 2024 Inabata & Co., Ltd.

1Inabata’s Strengths© 2024 Inabata & Co., Ltd.

Inabata’s Strengths ～ (1) Performance Growth Business performance is growing steadily, with record-high net sales
and operating profit in the last three consecutive fiscal years.
(Operating profit: Billions of yen)

(Net sales: Billions of yen)
1,000.0

Net sales

1,000.0

Operating profit

900.0

35.0

800.0

735.6

561.1 572.1 577.0

600.0

586.6

621.1 634.7

600.3

30.0

10.9 10.7
7.9
5.5

7.6

7.7

20.3 21.1
20.0

410.7

300.0

25.0

577.5

469.0 464.4 479.9

500.0

200.0

766.0

680.9

700.0

400.0

40.0

11.3

14.0

12.6

13.2

20.0

14.9

15.0
10.0

5.9

5.0

100.0

0.0

0.0
Around 2030
IK Vision 2030
© 2024 Inabata & Co., Ltd.

3

Inabata’s Strengths ～ (2) History, Client Base, and Human Capital Founded in 1890, built up a client base (suppliers and customers) of about 10,000
companies during a history spanning more than 130 years-

Founded in 1890 as Inabata Senryoten in Kyoto. Since then, Inabata has expanded business, focusedon the chemicals field, in response to modern customer needs. In addition to chemicals, our businessspans a variety of categories, including electronics, precision equipment, automobiles, daily
necessities, and housing-related products, enabling Inabata to secure stable earnings and explore
innovative new products and applications.

 A trading company specializing in chemicals with a global information network-

Inabata is a trading company specializing in chemicals with nearly 70 overseas bases in 19 countries.
We have established a global information network and customer support system covering everythingfrom product markets to raw material supply and demand, enabling us to respond in a timely manner
to customer local production and overseas expansion needs.

 Providing high-mix, low-volume production, VMI* functionality, and other added
value-

Inabata provides added value by responding to customer needs for procurement and small lot
production outsourcing. For example, we reduce procurement and logistics costs by establishing
manufacturing and processing bases close to customers and consumers for customer procurement*Vendor Managed Inventory
activities requiring a wide range of raw materials.

 Human resources embodying “business management with respect for people”-

Employees are the most important form of capital for trading companies, and Inabata provides highvalue by building relationships of trust with suppliers and customers based on the spirit of “love (ai)”and “respect (kei),” and a high level of expertise.

© 2024 Inabata & Co., Ltd.

4

Inabata’s Strengths ～ (3) Solid Business Base in Asia
Number of Locations and Personnel

Established sales base in Singapore in 1976. We
then expanded our network of bases to build asolid business foundation in Northeast andSoutheast Asia (56 bases in 11 countries outside
Japan).
Our main focus in Northeast Asia is FPD
materials. In Southeast Asia, we are expanding
the plastics business by differentiating us fromcompetitors through the compound business.

Around 1980
3 basesin 2 countries

End of 2023

56 bases in
11 countries• Number of Personnel in Asia ：2,956（ Percentage of total consolidated basis 64%）*As of March 31, 2024

(Billions of yen)
400

Sales in Asia
296.7

300
257.1

200

100

270.5

277.7 280.2

376.9
352.9

356.3

310.6
286.6

279.3

187.8

Trading company
Manufacturing &processing base

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023© 2024 Inabata & Co., Ltd.

5

Developments in Asia ～ FPD-related business Expanding customer base and scope of business in response to changes in the FPD
market environment, growing into a core business•

Rapidly responded to changes in the main panel manufacturing countries (Japan -> Taiwan -> China・South
Korea) by developing personnel at local bases, initiating transactions with local manufacturers.

•

Launched business with polarizer raw materials, expanded product lineup to include polarizer, protective films,
and alignment layer films, as well as OLED materials.

•

Developed business based on information from a wide range of customers, from raw material and component
manufacturers, to panel manufacturers.

•

Leveraging our accumulated expertise and information, we were also able to establish supply chains anddevelop proposal-based business.

(Billions of yen)

300

Sales of Information & Electronics segment

Business Development Transition• Started in 1990 from sales of polarizer materials (PVA films)

247.7

210.7 209.3 211.6

200

221.0

214.9 217.9 218.6

1990 s
238.0 239.1

224.5

192.4

2000 s• In 1993, launched sales of polarizer films to Japanese panel
makers• Established polarizer film processing base in Taiwan in
response to emergence of local leading panel makers. In 2001,
took over a joint venture with Sumitomo Chemical Co., Ltd.,assumed responsibility for sales, etc.
• Among the first to start business with leading Chinese panel
makers and capture market expansion (spread of notebook PCs,
shift to FPD for TVs, and rapid growth of smartphones)

100

2010 s• Developed a wide range of commercial products in response totrends toward OLEDs and next-generation FPDs

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023© 2024 Inabata & Co., Ltd.

6

Developments in Asia ～Plastics Segment
Expanded overseas in line with Japanese consumer electronics
manufacturers transition to overseas production. Subsequently
expanded into a global network of bases while cultivating customers in
the office automation and automobile industries (overseas sales ratio
exceeded 62% in FY2023).

Producing resin compounds at seven bases in seven countries mainlyin Asia. In addition to providing products meeting customer needs, we
also made new proposals for resin materials.



Points of differentiation from other companies• Versus major trading companies: Meticulous response to needs for a wide
variety of products in small quantities• Versus small- to medium-sized trading companies: Support for customer
overseas expansion(Billions of yen)
500.0

363.9 360.4
286.9
232.8

200.0

•

Overall market growth of 2–3% per year is expected to remain stable.

•

Declining trend in general-purpose applications such as plastic bags, tableware, andcontainers/packaging•

Automotive and other applications are expected to grow in line with demands forweight reductions and metal substitutions.

•

Recycled materials are expected to increase amid expanding environmental
regulations and decarbonization trends .

（t）

40,000,000

250.4 251.1 251.8

300.0Market for resin compounds
Source: Inabata, outlook from 2023 onward

30,000,000

20,000,000

Sales of Plastics segment

400.0
300.0

Resin Market Environment

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

Annual production capacity of resin compounds (MT/Y)FY2030

As of March 31, 2024

316.2
270.3

248.8

186.0

100.0
0.0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023© 2024 Inabata & Co., Ltd.

7

Developments in Asia ～Plastic compound Highest productivity in the industry-

With seven production bases in seven countries including China,
Vietnam, and Indonesia (195,600 MT/year in total as of March 31,2024), Inabata is among the largest production scales in theindustry as a trading company-affiliated resin compounder.

 Global customer support structure-（MT）

Plastic compound production capacity

250,000
200,000
150,000
100,000

Integrated domestic and overseas customer support system,
including overseas offices, provides prompt and useful information,
one-stop price negotiation capabilities in Japan and overseas, andassurance of stable supply.

50,0000

Business model forthe plastic compound•

Differentiation by meeting customer needs for rapid delivery and highmix low-volume production in close proximity to customer
manufacturing bases•

Involvement in customer manufacturing processes enables Inabata toobtain up-to-the-minute product-related information starting from thedevelopment phase, leading to new proposals for plastic materials andchemicals.

© 2024 Inabata & Co., Ltd.

Streamlined
operations in South
China

Joint venture with Daicel



Established joint venture with Daicel Corporation(scheduled to begin operations in July 2024) to further
enhance compounding functions and expand the plastics
business
Aims of joint venture•

Acquire new production technologies andenhance quality controls•

Develop technical talent•

Augment development capabilities•

Increase manufacturing capability throughintroduction of production system8

【Reference】Business model for the plastic compound business© 2024 Inabata & Co., Ltd.

9

Our Previous Medium-Term Management Plan

Achievement of Targets in “New Challenge 2023”© 2024 Inabata & Co., Ltd.

Company-wide
Net sales fell short of the target due to deteriorating FPD market conditions and other factors.
Operating profit achieved the target, partly due to a tailwind from yen depreciation.
Ordinary profit was roughly in line with the target, absorbing interest rate hikes.
Profit attributable to owners of parent fell short of the target due to a decrease in gains on the sale ofinvestment securities.
 ROE was in line with the projection, with the target level maintained through financial soundness.


FY03/24
Actual（Billions of yen）

Target for
FY03/24

Difference

766.0

800.0

-33.9

96%

Operating profit

21.1

20.5

+0.6

103%

Operating profit margin

2.8%

2.6%

+0.2%

-

Ordinary profit

21.3

21.5

-0.1

100%

Profit attributable toowners of parent

20.0

22.5

-2.4

89%

ROE

10.5%

10% or more-

Achieved

Net debt/equity ratio

0.06x

0.5x or less-

Achieved

Equity ratio

46.8%

-

Achieved

Exchange rate (USD/JPY)¥144.59--

Net sales© 2024 Inabata & Co., Ltd.

Approximately

40～50%¥120.00

Achievement rate11

By Segment
 Mainly Sales in Information & Electronics fell short of targets.
 With the exception of Life Industry, all other segments achieved operating profit targets.
（Billions of yen）

FY03/24
ActualSegment

Sales

Target for
FY03/24

Operating profit

Sales

Difference

Operating profit

Sales

Operating profit

Information &Electronics

239.1

6.90

284.0

6.30

-44.8

+0.60

Chemicals

112.6

2.78

119.0

2.60

-6.3

+0.18

Life Industry

53.5

1.48

52.0

2.50

+1.5

-1.01

Plastics

360.4

9.87

344.8

9.00

+15.6

+0.87

Other

0.1

0.13

0.2

0.10

-0.0

+0.03

Total

766.0

21.19

800.0

20.50

-33.9

+0.69

© 2024 Inabata & Co., Ltd.

12

Sustainability
 We accelerated sustainability initiatives during NC2023.
October 2021

Established Sustainability Committee
Chaired by the Company president; all directors, including thosefrom outside the Company, participate in the Committee as amember or observer

November 2021

Formulated the Inabata Group Sustainability Basic Policy andthe Code of Conduct

March 2022

Formulated Inabata Group Human Rights Policy

April 2022

Signed UN Global Compact (UNGC)

June 2022

Announced “2050 Carbon Neutrality Declaration”
Defined materiality issues
Began disclosures in accordance with TCFD recommendations

Note: Text in red indicatesrecent developments.

August 2022

Selected as a component of the FTSE Blossom Japan Sector Relative Index

March 2023

Certified as a Health & Productivity Management Outstanding Organization 2023

April 2023

Endorsed the recommendations of TCFD

August 2023

Selected as a component of the FTSE Blossom Japan Index

September 2023

Forged a business alliance with Asuene Inc. to support decarbonization of corporations

March 2024

Certified as a Health & Productivity Management Outstanding Organization 2024

May 2024

Formulated "Sustainability Mid-term Plan 2026“*© 2024 Inabata & Co., Ltd.

*https://www.inabata.co.jp/archives/002/202406/20240605_SustainabilityMedium-termPlan2026.pdf

13

Our New Medium-Term Management Plan

Summary of “New Challenge 2026”© 2024 Inabata & Co., Ltd.

Company-wide Quantitative Targets

FY03/24
Actual

NC2026
FY03/25
Plan

FY03/26
Plan（Billions of yen）

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%

15

Segment Quantitative Targets（Billions of yen）

NC2026
FY03/24
ActualFY03/25
Plan

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

16

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%

17

Overview
Long-term Vision “IK Vision 2030”

Key themes:

Medium-term Management Plan NC2026

 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

18Company-wide Growth Strategy Summary
Consolidated sales
Over ¥1 trillion≫ Approach: Expand earnings throughproactive investment≫ Business domains: Expand environmentrelated business and life industry businesssuch 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 and logistics)

Overseas ratio
70% or more
≫ Further develop growth areas (especially in
India, Mexico, and the Americas, inaddition to the existing Asia sites)≫ Move into untapped areas (e.g., Eastern
Europe)19

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.

20

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.

21

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.

22

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 byglobal 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.

23

Environment and Energy Field Expansion (Information & Electronics Segment)

Accelerate expansion of environment and energy field— Aiming for sales of ¥100 billion around 2030
Environment & energy field sales(Billions of yen)
120.0

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

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

54.0

26.1

FY2023

FY2026
Plan

Around2030
Targets
24

Automotive Resin Sales Expansion (Plastics Segment)

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
100.0

98.7

113.3

131.4
• Expand global network• Identify and capture next-generation trends

70.0• Acquire more non-Japanese customers• Expand in high-growth regions (India,
Mexico, etc.)

50.0
0.0

FY2020

FY2021

FY2022

FY2023Around2030
Targets© 2024 Inabata & Co., Ltd.

25

Management Base Strategy

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 (forinvestment 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 and shareprices (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.

26

Management Base Strategy

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 achieve carbon
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, is seen
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

Management Base Strategy

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 regulations inJapan 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 human rights≫ 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

Management Base Strategy

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 with local
communities
Fostering and strengthening the human capital driving the value creation
Enhancing governance and risk management

Strategy

KPIs and Targets (April 2024 to March 2027)

Boundary‒ Improve the well-being (state of being physically,
mentally, and socially satisfied) of employees
who support sustainable growth

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% acrossall items*3
2. Expand the implementation boundary for the human rights DD digital survey to the Group

Consolidated‒ Foster diversity and inclusion that makes themost of diverse individuals

1. Increase the ratio of women in managerial positions to at least 8% by March 2028, and to
10% by 2030
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

1. Achieve a 100% rate of complete checkup *4
2. Maintain comprehensive health risk found by stress checks at current levels*4

Non
Consolidated‒ Focus on investment in human capital

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%

Non
Consolidated

1-4
Non
Consolidated
5Consolidated*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.
*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 the value
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
Digital strategy

Enhance management information infrastructure and reinforce Group-wide
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 the Group~ Complete transfer of IT infrastructure to cloud environment and further
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.

30

Management Base Strategy

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.

31

Management Base Strategy

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 small Groupsites.

‒

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.

32

Management Base Strategy

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

Verify suitability of using generative AI for business applications andimplement 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.

33

Shareholder returns© 2024 Inabata & Co., Ltd.

Basic Policy on Shareholder Return

During NC2026,

Basic PolicyonShareholder
Return• 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 tocontinuously increase the dividends without reducing them (Progressive
dividends).
• The target for total return ratio is roughly 50%.

＊Announced in May 2022

© 2024 Inabata & Co., Ltd.

35

Shareholder returns
For FY03/25, we plan to pay an annual dividend of ¥125 per share, with an increase of ¥5 (interim: ¥60 per share; year-end: ¥65 per share).



We will repurchase up to 1,200,000 shares for ¥5.0 billion (between May 13 and July 31, 2024).**All shares are to be cancelled after acquisition.

110

Annual dividends per share and indicatorsof shareholder return
Dividend

Dividend payout ratio

Total return ratio

（Yen）

33
31.1%
24.1%

40

40

36
31.1%
23.7%

48

46.5%

34.8%

36.4%

25.6%

53

115

120

125

63
62.2%

30.0%

31.9%

27.6%

22.7%

28.1%

27.5%

29.4%

47.1%

44.7%

33.5% 33.1%

40.6%

FY03/15FY03/16FY03/17FY03/18FY03/19FY03/20FY03/21FY03/22FY03/23FY03/24FY03/25
NC2020forecast

NC2023

Treasuryshares

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

Acquisition
amount

604

707

891

679

936

425

-

7,499

2,635

2,229

No. of shares
Acquired

600

600

600

400

600

300

-

3,085

1,035

765

(Thousandsof shares）

No. of sharescancelled

1,660

-

-

-

-

-

-

2,700

3,685

1,200

(Thousandsof shares）© 2024 Inabata & Co., Ltd.

(Millions of yen)36

Measures to Realize Management Conscious of
Cost of Capital and Share Prices© 2024 Inabata & Co., Ltd.

Current Status: Summary（June 2023 disclosure）

 We have reached profitability levels that exceeded the cost of capitalduring NC2023.
 While the market’s valuation of the Company is improving, PBR, which
is below 1x, still needs improvement. We believe it is necessary toaccelerate growth investments and increase the market’s valuation of
our growth potential.
 While maintaining the current level of return on capital, it is crucial that
we accelerate growth initiatives, increase our business value, andstrengthen our appeal to investors.

© 2024 Inabata & Co., Ltd.

38

Cost of Capital vs. Return on Capital Under NC2023, ROE has continuously risen to a level exceeding the cost of shareholders’ equity.
 In FY03/24, beta (β) declined on an expanded shareholder base due to improved market liquidity.
* Assumptions for calculating cost of equity
Based on CAPM, (The figures below are as ofthe end of March 2024.)

ROE and cost of equity

15.0%
ROE

7.4%

7.1%
5.3%

0.0%

11.0%
9.3%

8.5%

5.8%

12.8%

Cost of equity

10.0%

5.0%

8.6%

8.8%

7.3%

6.3%

8.4%

10.5%

7.5%

4.7%
* Recorded allowance for doubtful accounts
at the Europe business in FY03/18

FY03/17

FY03/18

FY03/19

FY03/20

NC2020© 2024 Inabata & Co., Ltd.

• β 1.07• Market risk premium 6.3%
• Risk-free interest rate 0.75%

FY03/21

FY03/22

FY03/23

FY03/24

NC202339

Share Price and the Market’s Valuation of the Company
 Steady rise in market price (approx. 1.9x) and market cap (approx. 1.7x) over the three-years of NC2023.
 PBR is trending up, but not yet reached the target of 1.0x (0.91x* as of May 30, 2024).
 PER is also trending up, but remains at a low level. Need to raise higher for Inabata’s future growth
expectations.
*Obtained by dividing the closing price on May 30, 2024 by BPS at
the end of FY03/24

Stock price and market capitalization
Market cap (hundred millions of yen)
Stock price (yen)

2,687
1,658
1,616 1,505
1,357
1,180
861

1,026

955

749

1,052

ROE

3,175

2,063
1,254

1,534 1,775

7.1%

8.5%
4.7%

7.4%

8.6%

12.8%
11.0%10.5%

FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24
FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24

PBR of 1x

PBR

TSE Prime
wholesaleaverage:
11.3x*

PER
0.84 0.88

0.57

0.70
0.56

0.49

0.57

0.67

FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24*Recorded allowance for doubtful accounts at the Europe business in FY03/18*All figures are as of the end of the fiscal year

© 2024 Inabata & Co., Ltd.

14.7
8.7

7.1

6.2

7.2

5.5

7.8

8.8

FY03/17 FY03/18 FY03/19 FY03/20 FY03/21 FY03/22 FY03/23 FY03/24*As of March 31, 2024 * Weighted average PER

40

Policies/Targets, and Timeline （June 2023 disclosure）
 At a Board of Directors meeting held in May 2023, we have resolvedon the following policies.

 Policies
Increase the share price so that PBR stays above 1x at all times, assoon as possible, through the following four measures:① Firmly implement growth strategies to drive sustainable growth in businessvalue, and foster expectations for future profit growth② Maintain ROE of 10% or above③ Control and/or curtail the cost of capital, including by utilizing financial
leverages④ Continue buying back shares© 2024 Inabata & Co., Ltd.

41

Specific Measures ①Increase Business Value and Foster Growth Expectations
 The following growth initiatives were implemented under NC2023. Under NC2026, we will pursue rapid
contributions to earnings.
Note: Red text indicates recent major investments.

Key Initiatives for NC2023

1. Further development of core businesses and horizontal
expansion into growth sectors

Actual• Sales of plastics, FDP-related materials, and other products forautomobiles increased• Acquisition of Maruishi Chemical Trading (made it a subsidiary)• Established joint venture with Daicel Corporation to strengthen thecompound business functions• Expansion of sales of products that reduce environmental load

2. Multi-faceted approach to markets with potential for future
growth and steady monetization efforts• Participation in biomass power generation business• Investment in semiconductor-related companies• Invested in a high-performance filler production company• Acquisition of Daigo Tsusho (made it a subsidiary)

3. Intensification of investment targeting future growth• Establishment of a US joint venture that manufactures lithium-ion
battery-related materials• Investment in a French company engaged in the development,
extraction, and sales of plant extract components• Reinforcement of Business Planning Office functions

5. Continuous review of assets and further improvement of
capital and asset efficiency

6. Enhancement of human capital utilization efforts© 2024 Inabata & Co., Ltd.

• Fundraising for growth investment through the sale of strategic
shareholdings• Issue of straight bonds (diversifying fundraising methods)• Introduction of a restricted stock incentive plan for the employee
shareholding association• Revision of HR systems to promote diversity• Enhancement of training systems to nurture global talent42

Specific Measures ②Maintain ROE of 10% or above
 Maintain ROE of 10% or above, largely by expanding profits,enhancing profitability, and continuing to control the cost of equity
Expand profits and increase GPM

ActualGrow mainstay businesses• Driven by core businesses, we achieved record-high net sales andoperating profit for the third consecutive fiscal year under NC2023.

Increase the share of earnings accounted for byhighly profitable businesses• Under NC2023, the operating profit margin steadily improved from
2.6% in FY03/21 to 2.8% in FY03/24.

Make aggressive investments, including in M&A, and• During NC2023, we invested about ¥21.5 billion over three fiscal years.
generate revenue at an early stage
Steadily dispose of strategic shareholdings
Control of equity• Progress in reduction of cross shareholdings exceeded the target.

ActualContinue flexible share buybacks and cancellations• During NC2023, 4,880,000 shares were repurchased for ¥12.3 billion, and7,580,000 shares were canceled.
• Repurchasing 1,200,000 shares for up to ¥5.0 billion (planned between May–
July 2024)

Maintain a progressive dividend policy• Substantially raised dividend in first year of NC2023 (from ¥63 per share in
FY03/21, to ¥110 per share in FY03/22). Since then, dividends have been
increased by ¥5 per share every fiscal year (¥115 per share in FY03/23, ¥120
per share in FY03/24).
• Dividends amounting to ¥19.6 billion were paid out during the three years ofNC2023*© 2024 Inabata & Co., Ltd.

*Consolidated basis

43Specific Measures ③Control and Curtail Cost of Capital By promoting indirect measures in addition to direct measures, reducerisks and information gaps with the market and control and/or curb thecost of capital
Direct measures

ActualUtilize debt (diversify funding methods, including theissue of corporate bonds)• Issued the company’s first straight corporate bonds in March 2023.
• Plan to issue second series and third series of straight corporate bonds In June 2024.

Buyback and cancel own shares• During the three years of NC2023, 4,880,000 shares were repurchased for ¥12.3
billion, and 7.58 million shares were canceled.
• Repurchasing 1,200,000 shares for up to ¥5.0 billion (planned between May–July2024).

Indirect measures

ActualEnhance information disclosure• Rapidly responded to Measures to Realize Management Conscious of Cost of Capitaland Share Prices and Implementation Status of Dialogue with Shareholders.
• Disclosed details of growth strategy and other aspects of new medium-term businessplan NC2026.

Actively engage in dialogues with investors (step up
efforts to provide explanation)• Increased the number of one-on-one meetings with institutional investors and analysts(from 54 meetings in FY03/22 to 62 meetings in FY03/23).
• Initiated one-on-one meetings between outside directors and institutional investors.

Strengthen the Board’s monitoring function tocontinuously monitor performance• Continued to evaluate the effectiveness of the Board of Directors, and identified andaddressed issues for the next fiscal year and beyond.

Be selected as a constituent of many ESG indexes
by increasing ESG scores• First selected as a constituent stock for the JPX-Nikkei Index 400.
• First selected as a constituent stock for the FTSE Blossom Japan Index.

Improve market liquidity• Market liquidity improved and shareholder base expanded in line with stock offering.

© 2024 Inabata & Co., Ltd.

44

Disclosure Methods and Dialogue Policies
 New themes added to the medium-term management plan
• Added the achievement of a share price level higher than 1x PBR as quickly as
possible as a strategic theme under the new medium-term management plan
NC2026. Inabata will pursue this goal with even greater commitment.

 Disclosure methods• From FY03/25 as well, we will continue providing an explanation of our progress on
this issue at earnings briefing sessions held at the end of each term.

 Dialogue policies• Based on disclosed information, mainly our executive officer in charge willproactively engage in dialogues with investors, within a reasonable scope, throughone-on-one IR meeting.
• The content of the dialogues will be disclosed on our website or corporate
government reports.
（Disclosed “Implementation Status of Dialogue with Shareholders in FY2023” on
May 9, 2024）• We will update our measures to reflect the content of the dialogues.
© 2024 Inabata & Co., Ltd.

45

Reference Materials© 2024 Inabata & Co., Ltd.

Business Environment Yen depreciation amid Japan-U.S. interest rate
differentials

 Domestic naphtha prices remain highDomestic naphtha price (JPY/KL)

USD/JPY

86,100135.50108.70106.10144.5960,000112.3972,80080,00047,700FY03/21

FY03/22

FY03/23

FY03/24 Overseas interest rates plateau, but remain highUS 2-year Bond Yield (%)

FY03/22: Avg.
JPY56,625/KL

0

1Q

2Q

3Q

FY03/23: Avg.
JPY76,625/KL
4Q

Smartphones© 2024 Inabata & Co., Ltd.

1Q

2Q

3Q

4Q

234

(Shipment volume, million units)

1,300

270

FY03/21

1,200

732

630

March 28, 2024

4Q

Monitors/PCs/tablets

2.00

March 31, 2023

3Q

LCD panels

1,270

3.00

March 31, 2022

2Q

TVs

4.00

1.00

1Q

FY03/24: Avg.
JPY69,100/KL

 FPD-related businesses not expected to fully
recover

5.00

0.00
April 1, 2021

63,60040,00020,000FY03/20

67,50072,500210

261

FY03/22

199

260

1,200
458

FY03/23

190

234

420

FY03/24

forecast

47

Investment Status
 Aggressive investment in second half of NC2023 aimed at accelerating growth in NC2026（Billions of yen)

FY03/22
ActualGrowthinvestment

1.20

FY03/23
ActualFY03/24
Actual2.86

Major investments
in FY03/24

8.81¥3.59 billion for M&A(Maruishi Chemical Trading, Daigo Tsusho)¥1.21 billion for rechargeable battery-related¥0.72 billion for biomass power generationrelated¥0.50 billion for semiconductor-related¥0.40 billion for facilities(related to sheets and inflation films)¥0.36 billion for facilities(related to compounds)¥1.54 billion for Digital Strategy

Fixed investment

2.01

2.78

3.91

Total

3.21

5.64

12.73

NC2023cumulative
results*FY03/22～
FY03/24

12.88

8.70

21.58

* Digitalization-related investments are included in Fixed investment.
© 2024 Inabata & Co., Ltd.

48

Products that reduce environmental load
 Sales of eco-friendly (i.e., environmental load-reducing) products steadily
expanded mainly in the Energy & Power and Resources & Environment fields.
 From FY03/25 onward, we will focus on expanding sales of recycled resins.
（Billions of yen）

Field

Main contents

Sales
FY03/22(Actual)

FY03/23(Actual)

FY03/24(Actual)Energy & Power

Renewable energy-related,battery-related, etc.

13.4

17.5

24.4

Resources &Environment

Sustainable raw materials,
recycling, water-related

4.2

7.5

10.7

Materials &Chemicals

Low carbon materials, reductionof environmental pollutants, etc.

0.7

1.5

3.1

Environmental
certifications

Certified products of FSC,
PEFC, MSC, ASC, etc.

0.3

0.3

0.1

18.7

26.9

38.6

Total** Simple aggregate value© 2024 Inabata & Co., Ltd.

* From FY03/23, some product categories have been reclassified (solar cell and EV battery materials were moved from
Materials & Chemicals to Energy & Power). FY03/22 sales figures have been retroactively adjusted to reflect this change.

49

Reducing strategic shareholdings
 We made greater-than-expected progress in reducing strategic shareholdings,
owing in part to a drop in market prices, and achieved the NC2023 reduction
target.

Policy for reducing strategic shareholdings• Reduce the balance of strategic shareholdings at the end of March 2021 by half during the three years of NC2023. Achieved• Further reduce strategic shareholdings in the medium to long term, curtailing the balance of strategic shareholdings at the endof March 2021 by about 80% by the end of March 2027.

（ Billions of yen ）60.0

Sales value of strategic shareholdings

Strategic shareholdings

50% reduction

40.0

80% reduction
20.0
0.0

EndEndEndEndFY03/21 FY03/22 FY03/23 FY03/24

EndFY03/27

NC2023

FY03/18¥9,017 million

FY03/19¥5,298 million

FY03/20¥3,026 million

FY03/21¥2,944 million

FY03/22¥9,367 million

FY03/23¥10,076 million

FY03/24￥4,159 million*Only includes listed stocks in Japan*The balance of strategic shareholdings in the graph only includes listed stocks in Japan.
*The balance of strategic shareholdings was calculated using share prices at the end of each term.
© 2024 Inabata & Co., Ltd.

50

Sales by Segment(Billions of yen)
1,000.0

Information & Electronics

ChemicalsLife Industry

Plastics

Other（Plan）

830.0

500.0

621.1

634.7

0.1

0.1

286.9

300.0

42.3

0.0

39.0

680.9
600.3
0.1
270.3

577.5

0.1

0.1

316.2

735.6
0.1
363.9

766.0

248.8

36.9

37.3
66.6

53.5

38.2

43.6

78.6

89.8

112.6

890.0

388.0

61.0
124.8

950.0
0.2

408.0

66.8
132.0

426.0

72.8
139.0

76.7

77.5

214.9

217.9

218.6

224.5

247.7

238.0

239.1

256.0

283.0

312.0

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

FY03/25

FY03/26

FY03/2774.1

NC2020© 2024 Inabata & Co., Ltd.

NC2023

10,000

0.2

0.2

0.1
360.4

（Target）（Plan）

NC2026

Around 2030
IK Vision 2030

51

Operating Profit by Segment(Billions of yen)

Information & Electronics

ChemicalsLife Industry

Plastics

Other

27.50

（Plan）（Plan）

22.50

20.05

17.50

14.03
0.13

12.50

5.96
7.50

0.12
5.54

2.50

(2.50)

1.92
0.41(2.04)
FY03/18

6.34
1.31
1.42

13.22
0.13
6.23
1.16
1.20

4.81

4.48

FY03/19

FY03/20

NC2020© 2024 Inabata & Co., Ltd.

14.97

20.31

0.12

0.13

8.67

10.20

21.19
0.13
9.87

0.13
5.63
1.56
1.32

22.50

24.50

（Target）

27.00
0.10

0.10

0.10

12.10
11.55

10.80
3.10

2.61
2.20

6.32

6.42

FY03/21

FY03/22

1.93

1.48

FY03/23

NC2023

2.60
3.05

2.78

2.85

6.90

6.55

7.20

FY03/24

FY03/25

FY03/26

2.77
5.26

2.20

3.25

8.45

FY03/27

NC202652

EPS（Earnings per share）（Yen）
400.00374.23343.31

362.17307.79300.00211.36200.00137.20151.91

229.13188.82

156.25109.92100.000.00

FY03/15

FY03/16

FY03/17

FY03/18

FY03/19

FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

FY03/25(Forecast)© 2024 Inabata & Co., Ltd.

53

Trends in Share Price
220%

193%

200%

180%

INABATA
稲畑産業

TOPIX

160%

141%

140%

120%

100%

80%
April 1, 2021

April 1, 2022

April 1, 2023

March 31, 2024

Note: Indexed with April 1, 2020 as 100%.
© 2024 Inabata & Co., Ltd.

54

Company Overview (As of March 31, 2024)
Name

Inabata & Co., Ltd.

Fiscal year

April 1 to March 31

Founded

October 1, 1890

Exchange listing

Prime Market of the Tokyo
Stock Exchange

Incorporated

June 10, 1918

Ticker8098

Capital stock¥9,364 million

Trading unit

100 shares

Representative

Katsutaro Inabata, Director,
President

Shareholders

74,851

Head offices

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

Individuals/others
Foreign investors
Securities companies

Employees

748 (4,631 on consolidated basis)

17.6%

Issuableshares200,000,000

Shares issued
and outstanding

55,914,127*Due to the rebuilding the Tokyo Head Office Building, from December 19, 2022
to early 2026 (planned), we will temporally relocate the Tokyo Head Office andconduct business at the Muromachi Furukawa Mitsui Building (COREDO
Muromachi 2), 2-3-1 Nihonbashi Muromachi, Chuo-ku, Tokyo.

Shareholder Composition

2.8%

Financial institutions
Domestic corporations
Treasury stock

0.2%

31.5%
55,914thousand shares(As of March 31, 2024)

25.4%

22.5%

55

 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.

56