(July, 2013)

The Strengths of Inabata—A company cultivated by Katsutaro Inabata’s philosophy of love (ai: "I") and respect (kei: "K")

 8098   Inabata & Co.,Ltd.

From motion picture technology to chemical dyes, our founder helped promote the modernization of Japan

Do you know who presented the first cinema show in Japan? It was actually our founder, Katsutaro Inabata. In 1897, he brought with him from France a “cinematograph,” the world’s first motion picture camera which was invented in France, and also received the production rights for its use.
Born to a Kyoto family that ran a long-standing wagashi (japanese sweets) store, Katsutaro, aged just 15, studied in France in order to learn about the latest dyeing techniques. Over the next eight years, he would learn about the basics of dyeing, applied chemistry, and other subjects at a technical school in Lyon as well as at the University of Lyon. After returning from France, Katsutaro established Inabata Senryoten in Kyoto in 1890, as sole representative of a major French dye manufacturer, “Societe Anonyme des Matieres Colorantes & Produits Chimiques de St. Denis.” Katsutaro’s efforts towards the modernization of the textile industry, including the import and sales of synthetic dyes and development of the domestic production of dyes in order to promote the use of chemical dyes in the business, set the foundation for today’s Inabata & Co.

Supporting customer business through our five business divisions

Initially an importer of dyes, dyeing technology, and dyeing and weaving machinery, Inabata & Co. went on to become a chemicals trading company and expanded its business fields in order to respond to the ever-changing times and customer needs. Currently, our company achieves solid performance in the various business fields described in the section below.

Inabata’s unparalleled strength

Expanding business involves more than simply developing product lines. Since business has indeed become global, Inabata currently has a network of approximately 60 locations throughout Southeast Asia, India, Northeast Asia, the Americas, Europe, and other regions. Furthermore, each location provides multiple functions from planning, marketing, manufacturing, and processing to distribution.
So where does Inabata’s strength lie which makes such business development possible? The answer is this: Inabata’s strength lies in its people and specialized knowledge. All trading companies are the same in regards to the fact that they all need information for business. As a result, Inabata has created a global network in order to always pursue customer needs and strengthen its information power. Since Inabata also serves as a manufacturer, it can truly provide information and products that customers need at a level that other companies cannot.
Naturally, such information is worthless without having the people to manage it. At Inabata, we feel that it is most important to cultivate our human resources (the source of our business success) in line with our philosophy of love (ai: "I") and respect (kei: "K"). Since information is like a living thing that changes its form on a daily basis, our employees in particular always need to keep one step ahead of customers when it comes to expertise and innovation. Therefore, in addition to focusing on specialized technical training in each business field, Inabata creates a corporate culture that promotes “mutual respect,” “closeness with management,” and “openness” as well as promotes the accumulation and inheritance of know-how among employees in order to further strengthen customer trust.
Cultivated in this way, our people comprehensibly analyze information collected from around the world and quickly grasp market trends. This is where Inabata’s real strength lies.

Reliable dividend returns provided by stable growth

Utilizing our strengths which we have touched upon in the previous paragraphs, we will now look at Inabata’s underlying business conditions responsible for business development. During FY2012, Inabata witnessed strong overseas business performance, particularly in Asia, with increases in both sales and profits. For the period, the company posted consolidated sales of 501.1 billion JPY (YoY increase of 7.9%), operating income of 8.1 billion JPY (YoY increase of 6.9%), ordinary income of 10 billion JPY (YoY increase of 13.6%), and net income of 6.9 billion JPY (YoY increase of 10.9%), with sales, operating income, and ordinary income reaching record highs. Looking at the performance targets for FY2013 found in our current Mid-term Business Plan (IK2013), targets for consolidated ordinary income, net income, return on equity, etc. were reached one year earlier than expected in FY2012. This and other findings verify that each of the measures of the mid-term business plans are bringing about favorable results.
Inabata will continue aiming to achieve consolidated sales of 550 billion JPY and operating income of 10 billion JPY. The company will also introduce further management resources in the growing Asia market, strengthen its efforts to build locations in the developing nations of India, Mexico, and Brazil. In addition, Inabata plans to create an environment that  would raise the company’s earnings and enhance group synergy, including increasing the number of employees in its overseas division by 50% by 2016, in order to focus on solid growth in the overseas market.
Our company is also proud of its continued high dividend yields which are stable over the long term. In line with its basic shareholder return policy, Inabata and Co. aims to return 20 to 30% of consolidated net income to shareholders in the form of dividends and strives to provide a dividend of at least 10 JPY per share over a one year period to maintain stable dividends. With our people and specialized knowledge, we will continue to aim for solid business growth and continuously and stably return profits resulting from such growth to our shareholders. Based on our 120 year history, we are certain that Inabata will continue to grow as it faithfully follows its philosophy of love (ai: "I") and respect (kei: "K").

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