Topics and investment highlights
With 48 consolidated subsidiaries and 12 equity-method affiliates inside and outside Japan, Inabata is expanding its businesses globally. Sales settled at ¥464.4 billion and operating income at ¥7.6 billion, exceeding the performance forecasts announced in November 2011. The Company will aim for sales of ¥500 billion (overseas accounting for 40%) and operating income of ¥8 billion (overseas accounting for over 55%) in FY 2013 by significantly enhancing the plastics business.
Mid-term Business Plan (IK2013) aiming for operating income of ¥10B in fiscal 2013
The IK2013 three-year mid-term business plan began in fiscal 2011. It aims to achieve sales of ¥550 billion and operating income of ¥10 billion. The company has established an investment framework of total ¥9 billion for three years (¥2.2 billion implemented in fiscal 2011) to obtain steady returns, with key measures including (1) increased allocation of management resources to the Asia/China region, (2) expansion of efforts in emerging markets such as India, Brazil and Mexico, and (3) growing and strengthening the environment, energy and life science businesses.
Enhancing plastic compound business
In the performance-driving Plastics business, efforts will be made to enhance the plastic compound business. Collaboration among 7 compounding facilities in Asia will be further strengthened to establish an optimal production system in terms of location and scale. Production capacity will be increased in Indonesia and Vietnam. The total capacity in Asia is expected to top 200,000 tons within FY 2012. Launching plastic compound business in Mexico is mulled due to the increased scale of production by Japanese auto manufacturers in the country.