Inabata & Co., Ltd. Financial Results for the Fiscal Year Ended March 2023
Online Financial Results Briefing - Summary of Q&A Session

Date and Time: Monday, June 5, 2023, 13:00-14:00
Presenter: President Inabata[Investment in the Compound Business Equipment] (Refer to Presentation P44)
Q: I've noticed that there have been changes in the annual production capacity of your resin
compound production sites, compared to the figures from the December briefing last year.
Specifically, there's been an increase of 1,200 tons in Malaysia and 2,000 tons in the Philippines.
Conversely, Indonesia has seen a decrease of 4,200 tons and Thailand by 1,200 tons. Can you
explain if there have been any equipment reductions or enhancements during these past sixmonths? Also, do you have plans for future equipment expansion?
A: The increase in production in Malaysia and the Philippines is due to efficiency improvementsfrom equipment upgrades. In Indonesia, on the other hand, we have aging factories, and as
old equipment has been replaced, we've been streamlining operations to a certain extent.
Notably, in Indonesia, we're seeing a shift from traditional exports to increased domestic
demand, such as in the automotive and household appliance sectors. In this transition, we've
had to replace equipment, and as a result, our production capacity has slightly decreased. A
similar situation has occurred in Thailand, where our capacity has declined slightly due toequipment replacement according to customers’ requirements and applications. For Mexico,
we completed an additional production line in the first half of FY2022, which has increased ourproduction capacity from the previous 15,000 tons to over 22,000 tons. As for the investments
planned for the fiscal year ending in March 2024, we will announce those once the decisions
are finalized.

[Intensifying Investments for Future Growth] (Refer to Presentation P15, P31)
Q: Your NC2023 strategy emphasizes increased investments for future growth. How are theseinvestments in key areas progressing?
A: Our company has historically focused on organic growth. While organic growth remains ourfundamental strategy, we have articulated an intention to invest more aggressively during thismedium-term plan period, and we have put in place measures to facilitate this. For example,
we established a Business Planning Office dedicated to this purpose about two years ago toexpedite the identification and detailed examination of potential investment projects. Though
we've already made this public, a recent example of our investment initiatives is ourparticipation in the establishment of a new US-based company involved with materials related
to lithium-ion batteries. In the environmental sector, we've been particularly active in evaluating
and undertaking investments in biomass power generation, focusing primarily on small- andmedium-sized projects. We were successful in implementing one such project in the fiscal year
ended in March 2023. Also previously announced is our ongoing effort to make DAIGOTSUSHO Co., Ltd., a food-processing related company, a subsidiary. We will continue toproactively identify and evaluate potential investment projects moving forward.

[Shareholder Returns] (Refer to Presentation P19)
Q: You've set a target total return ratio of around 50%. Is this expected to change for the fiscalyear ending in March 2024?
A: No, we do not anticipate any changes. Regarding dividends, in line with our progressive
dividend policy, we're planning for a five yen increase to 120 yen per share for the fiscal year
ending March 2024. Assuming profits align with our plans, this will correspond to a dividend
payout ratio of approximately 32%. As for share buybacks, we have already publicly announced
in February that we're carrying out a buyback program from February 10th to the end of July ofthis year, capped at either 1.2 million shares or four billion yen. As of the end of May, we've
already acquired over 870,000 shares, roughly three-quarters of our target. Decisions about
future dividend increases or additional share buybacks will be made by considering a range offactors, including profit forecasts for the current fiscal year, the need for funds for growthinvestments, and the status of reducing cross-shareholdings, among others. Our intent is tomaintain a total return ratio of around 50% as a guideline, and we'll announce any decisions
promptly once they've been made.

[Outlook for Business Environment in Information & Electronics Segment] (Refer toPresentation P9)
Q: Could you share your outlook on the business environment and anticipated recovery timeline

for Flat Panel Display (FPD)-related products within the Information & Electronics segment for
the fiscal year ending March 2024?
A: This sector posed considerable challenges in the just-concluded fiscal year (FY03/2023),
and we expect a recovery to take some time. For the fiscal year ending March 2024, ourprojections for shipment volumes vary by application. For TVs, we anticipate a steady
performance, with shipments similar to last year at about 99%. For laptops, notebooks,monitors, and tablets, we foresee the current declining trend to continue, with our current
forecast at roughly 94% compared to the previous year. Last year was very challenging forsmartphones, but this fiscal year, we're projecting a minor improvement, expecting to reachabout 103% of the previous year's performance. However, considering that smartphones don't
hold a significant share when it comes to the total screen size within the market, we are notexpecting a considerable overall operational boost. Recently, we've made progress in inventory
reduction, and panel manufacturers' capacity utilization rates have improved somewhat fromtheir lowest levels. Nevertheless, we expect a full recovery will still require more time, and ourplans for this fiscal year reflect this perspective.

[Approach to Human Capital Utilization] (Refer to Presentation P24)
Q: Interest in the utilization of human capital is growing. Amid this trend, your company has
been making strides with diverse initiatives aimed at leveraging human capital. What are thecore principles driving your approach?
A: Our basic approach draws from our company's ethos, characterized by love and respect,“People come first, based on the spirit of love(ai) and respect(kei)”, and we assume that thisessential spirit underlies all the initiatives we undertake. However, to truly embody theseprinciples, we recognize the need to fully understand the people we aim to love and respect,appreciating their individual differences. For instance, as we continue our global expansion, weare engaging with people from diverse cultures and perspectives. It's crucial that we understandand respect this diversity. On the other hand, societal values are experiencing a significant shift,something that has been accelerated by the COVID-19 pandemic. We understand that thevalues we once held true may change over time, and what was once considered correct may
no longer be the case. In response to this evolving diversity and changing values, we've
implemented actions such as employee engagement surveys. These surveys allow us tointerpret overall trends and shape the initiatives we need to undertake. We believe that throughpersistent and ongoing efforts, we can enhance our employees' trust in the company.
Additionally, we're adopting visible measures like the introduction of a restricted share incentive
plan for our employee shareholding association. Our objective is to boost engagement with thecompany and expand our human capital by enhancing employee motivation.