President Katsutaro Inabata

To Our Shareholders
and Investors

We, the Inabata Group, have commenced the new, three-year medium-term management plan, New Challenge 2026 (NC2026), in April 2024, as the third stage toward achieving the IK Vision 2030—our vision for ourselves around the year 2030.
In NC2026, we aim to focus even more on growth than we did under the previous medium-term management plan, NC2023, with the main theme of “accelerating growth through investment.” Specific strategies include company-wide and segment-specific growth strategies and management base strategies—financial, sustainability, and digital —that support the growth strategies.
Our growth strategies call for aggressively investing in growth to expand earnings further and improve profitability. Target areas of business expansion include the environment, such as renewable energy and recycling, automotive, and food.
As one of our management base strategies, we set the goal of “increasing our stock price, as soon as possible, to a level that exceeds PBR of 1x.” We aim to achieve this goal early by realizing “management conscious of cost of capital and share prices.”
Further, as part of our sustainability strategy, we established the “Sustainability Medium-term Plan” to address the key management priorities (materiality) identified in June 2022. The plan spans the same three years as NC2026, and under the plan, we will work to reduce greenhouse gas emissions to achieve carbon neutrality by FY2050 and nurture and strengthen human resources.
By steadily implementing these strategies, we aim to achieve our sales target of 950 billion yen and operating profit target of 27 billion yen for the fiscal year ending March 31, 2027.
We kindly ask for your continued support.

July 2024
Katsutaro Inabata
Director, President

Reference

Summary of NC2026, Our New Medium-Term Management Plan

Quantitative Targets

(Billions of yen)

FY03/27
Targets
Net sales 950.0
Operating profit 27.0
Ordinary profit 26.0
Profit attributable to owners of parent 19.0
ROE 10% or more
Net debt/equity ratio 0.5 times or less
Equity ratio Approximately 50%

* Assumed exchange rate 1USD=145JPY

Company-wide Growth Strategy

Long-term vision Strategy
Consolidated sales
Over ¥1 trillion
  • ・Approach: Expand earnings through proactive investment
  • ・Business domains: Expand environment-related business and life industry business such as food products
Enhance multifaceted capabilities
  • ・Differentiate and boost earnings by enhancing multifaceted capabilities (especially in manufacturing and logistics)
Business portfolio
  • ・Further develop key segments (Plastics, Information & Electronics)
  • ・Establish earnings pillar on par with key segments
Overseas ratio
70% or more
  • ・Further develop high-growth areas (especially in India, Mexico, and the Americas, in addition to the existing Asia sites)
  • ・Move into untapped areas (e.g., Eastern Europe)

Management Base Strategy

Management base Strategy
Financial
  • ・Further improve capital efficiency and focus on shareholder returns, including paying progressive dividends
  • ・Implement a cost of capital and share price conscious management approach (achieve a share price level that regularly exceeds 1x P/B ratio as soon as possible)
Sustainability
  • ・Develop sustainability management as a foundation for company-wide promotion
  •  :Set and monitor strategies and KPIs/targets in line with materiality
Digital strategy
  • ・Enhance management information infrastructure and reinforce Group-wide security

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