Mid-term Business Plan
New Challenge 2023 (NC2023)
Toward Achieving Long-term IK Vision 2030
In May 2017, Inabata Group formulated a long-term vision, IK Vision 2030, envisioning what kind of company we want to be in years around 2030.
We have now entered the second stage toward achieving this long-term vision, with the launch of the three-year medium-term business plan New Challenge 2023 in April 2021.
Long-term Vision:IK Vision 2030
What Inabata envisions to be in years around 2030
|Further enhancing multi-faceted capabilities such as manufacturing, logistics and finance, in addition to trading.
|Scale of operation
|Achieving more than 1 trillion JPY in consolidated sales in early stage.
|Sales and operating income generated outside of Japan
|70% or more
|At least one-third of sales and operating income from business segments other than Information & Electronics and Plastics segments.
Mid-term Business Plan:NC2023
Three-year medium-term business plan, the second stage toward achieving our long-term vision
(Fiscal Year Ending March 2024)
|Profit attributable to owners of parent
|10% or more
|Net D/E ratio
|0.5 X or less
※Because the financial results for the first year of the medium-term plan (FY3/22) exceeded the targets for the final year of the plan (FY3/24), we revised the quantitative targets of the plan on May 10, 2022. ※Assumed exchange rate 1USD=120 JPY ※Sales target based on accounting standards prior to the adoption of the revised revenue recognition methods: 830.0 billion JPY
Basic Financial Policies
1. Cash utilization policy
Allocate cash earned in a well-balanced manner toward the following three areas:
- 1) Investment for future growth
- 2) Returns to shareholders
- 3) Strengthening of financial base
2. Basic Policy on Shareholder Return
- 1) 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 to continuously increase the dividends without reducing them (Progressive dividends).
- 2) The target for total return ratio is roughly 50%.
However, in any fiscal year when strategic shareholdings are sold and consequently, a substantial amount of cash-in is generated, shareholder return will be made without necessarily regard to the above target for total return ratio, comprehensively taking into account future funding needs, the Company’s financial conditions, stock price, market conditions and other factors.
3. Strategic shareholdings reduction policy
- - Reduce the balance of strategic shareholdings at the end of March 2021 by half during the three years of NC2023
- - Further reduce strategic shareholdings in the medium to long term, cutting the balance of strategic shareholdings at the end of March 2021 by about 80% by the end of March 2027
1. Further development of core businesses and horizontal expansion into growth sectors
- ・In Information & Electronics, we will enrich LCD and OLED businesses that primarily compete in the Chinese market. At the same time, we will focus on businesses related to next-generation FPDs, peripheral components, and industrial inkjets, a category that is currently expanding.
- ・In Plastics, we will take advantage of global expansion in the compounds business and other commercial activities and focus on broadening the scale of our business in the automotive industry, which is of paramount importance.
2. Multi-faceted approach to markets with potential for future growth and steady monetization efforts
- ・While aiming to expand our lineup of products that reduce environmental load, we will broaden the scope of efforts associated with alternative energy sectors, as well as businesses related to 5G, vehicle-mounted devices, and mobility, in a multi-faceted manner. Through these measures, we will strive to further improve income levels.
- ・We will strengthen both upstream and downstream expansion in the food and agricultural fields through wide-ranging investment and other measures as we aim to achieve more reliable profitability.
- ・In the life science field, we will focus on regenerative medicine and other markets that are expected to achieve further growth.
3. Intensification of investment targeting future growth
- ・We will leverage the financial base we strengthened through NC2020 and actively invest in trading business expansion while giving due consideration to cost of capital.
4. Further upgrades to global management information infrastructure
- ・We will strive to adopt new technological trends, achieve further digitalization, and transform and streamline operations (DX initiatives).
- ・We will establish a global management information infrastructure that supports advancements in security, business continuity planning, and new workstyles.
5. Continuous review of assets and further improvement of capital and asset efficiency
- ・We will further review cross-shareholdings and aim to reduce them by 50% over three years.
- ・Adopting a long-term perspective, we will ensure that funds obtained through the sale of cross-shareholdings will be allocated in a well-balanced manner for the purposes of growth investment, enhancement of shareholder returns, and further strengthening of our financial base.
6. Enhancement of human capital utilization efforts
- ・We will make further systemic enhancements aimed at global human resource development and higher diversity.
- ・We will strengthen efforts that target employee engagement and new workstyle reforms.