【Updated】】Summary of Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2017(Japan GAAP)
February 10, 2017
Listed Exchanges: TSE
Name of Listed Company: Ishihara Sangyo Kaisha, Ltd.
Code:4028
URL http://www.iskweb.co.jp/
Representative:(Title) President(Name) Kenichi Tanaka
Contact:(Title) Director(Name) Yoshinari Terakawa
Scheduled date of securities report submission: February 13, 2017
Scheduled date of dividend payment commencement: —Tel +81-6-6444-1850(Any amount less than one million yen is rounded down to the nearest million yen or nil.)1.

Consolidated Financial Results for Third Quarter of Fiscal Year Ended March 31, 2017(April 1, 2016 to December 31, 2016)(1) Consolidated Operating Results
Net sales
millions of yen
74,53577,3953Q, 2016
3Q, 2015(Note) Comprehensive income:

%
-3.7
3.2

(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%
millions of yen%
51.2
2,930
19.8
488-278
2,445 -34.0
323 -92.7
3,400-4.5

as of December 31, 2016: -1,426 million yen (%),as of December 31, 2015: 3,397 million yen (57.8%)
Net income per share

Net income per share after full dilution

Yen
-6.97
85.03

3Q, 2016
3Q, 2015

Yen(2) Consolidated Financial Position
Total assets
millions of yen
3Q, 2016
156,611
Year ended March 31, 2016
163,056(Reference) Equity capital:

Net assets
Millions of yen
57,50358,933

Capital adequacy ratio
%
36.7
36.1

as of December 31, 2016: 57,503 million yen, as of March 31, 2016: 58,933 million yen

2. Dividends
Dividends per share(Record date)June 30(Q1-end)

September 30(Q2-end)Yen

December 31(Q3-end)Year ended March 31, 2016

Yen0.00

Year ended March 31, 2017

0.00



March 31
(Year-end)

Yen

Year ending March 31, 2017
(Forecast)

Annual

Yen
0.00

Yen
0.00

0.00

0.00

(Note) Modification in the dividend forecast for current quarter: No modification

3. Forecast for Consolidated Results for the Full Year Ending March 31, 2017 (April 1, 2016 - March 31, 2017)(Percentages represent forecasted changes from the previous year for the full year results, andforecasted changes from the same period in the previous year for the interim results.)

Net sales

Full year

millionsof yen101,000

Operating income

Ordinary income%millionsof yen%millionsof yen-1.8

7,400-11.0

6,200(Note) Modification in the dividend forecast for current quarter: Modified* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-1-Net income

Earnings per share%

millionsof yen%Yen-11.6

4,400-51.9

110.05

4. Other information(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in consolidation scope): No change(2) Adoption of simplified accounting treatment and special accounting treatment for quarterly consolidated statement: Not adopted(3) Changes in accounting principles, procedures, and the method of presentation
1) Changes due to revisions of accounting standards etc.
: Not adopted
2) Changes other than those defined in 1) above: Not adopted
3) Changes in accounting procedures: Not adopted
4) Changes in the method of presentation: Not adopted(4) Issued shares (common shares)
1) Issued shares as of period-end (including repurchased treasury shares)
As of December 31, 2016: 40,383,943 shares
As of March 31, 2016: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of December 31, 2016: 406,516 shares
As of March 31, 2016: 401,966 shares
3) Average number of outstanding shares during period
3Q 2016: 39,980,557 shares
3Q 2015: 39,984,830 shares Notes on proper use of forecast and other matters
The forecast of financial results presented in this document is the result of management’s assessment based upon currently available assumptions,prospects and plans for the future. Actual results and dividend payments may differ from these forecasts, due to risks and uncertain factors, such as theglobal economy, competition, and foreign currency fluctuations.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-2-5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: millions of yen)Account Category

As of March 31, 2016
(summary)

As of December 31, 2016

ASSETS
Current Assets
Cash and deposits

29,39832,875

Notes and accounts receivable – trade
Merchandise and finished goods

25,22534,31725,37827,163Work in process

3,907

4,732

Raw materials and supplies
Deferred tax assets

14,845
1,107

11,457716

Other
Allowance for doubtful accounts

1,876
-184

1,821
-224

110,494

103,921

17,501

17,205

Others, net

21,232

21,473

Total property, plant and equipment

38,73338,678

Total current assets
Noncurrent Assets
Property, plant and equipment
Machinery equipment, net

Intangible assets

223

186

Investments and other assets
Investment securities

3,331

3,404

Deferred tax assets

8,016

8,569

Net defined benefit asset
Other

16
2,433

15
2,005

Allowance for doubtful accounts

-193

-168

Total investments and other assets

13,605

13,82552,562

52,690163,056

156,611

Total non-current assets
Total Assets* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-3-(Unit: millions of yen)
As of March 31, 2016
(summary)

Account Category

As of December 31, 2016

LIABILITIESCurrent Liabilities
Notes and accounts payable – trade
Short-term loans payable
Currents portion of bonds
Income taxes payable
Provision
Other
Total current liabilities
Noncurrent Liabilities
Bonds payable

10,341
27,950

16,11527,538

280

280

571
1,698

360
465

8,882

9,149

49,72553,909560

420

35,167
1,086

25,992
1,106

12,957

12,793

669
3,956

767
4,119

Total non-current liabilities54,396

45,199Total Liabilities

104,122

99,10843,42010,62643,42010,626

7,489

7,210

-702
60,834-706
60,551

243

Foreign currency translation adjustment
Remeasurements of defined benefit plans

―

477-0

-1,363-2,793-780-731

Total accumulated other comprehensive income-1,900-3,047Long-term loans payable
Provision
Net defined benefit liability
Liabilities from application of equity method
OtherNET ASSETS
Shareholder’s equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

Total net assets
Total Liabilities and Net Assets* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-4-58,933

57,503163,056

156,611(2) Consolidated Statements of Income(Unit: millions of yen)
Q3 2015(April 1, 2015 toDecember 31, 2015)

Account Category

Q3 2016(April 1, 2016 toDecember 31, 2016)

Net sales
Cost of sales77,395
58,31574,53555,775Gross profit

19,07918,760

Selling, general and administrative expenses

16,633

15,829Operating income (loss)

2,445

2,930

Non-operating income
Interest income

2322

Dividend income

91

85

Commission fee
177

173

Gain sales of raw materials
Other

196

159

Total non-operating income

489

526

85

Non-operating expenses
Interest expenses

1,090

860

Share of loss of entities accounted for using equity method
Foreign exchange losses

550
615

1,507
219

Other355

380

2,611

2,967

323

488

Gain on sale of non-current assets4,728

Total extraordinary income

4,728



Loss on disposal of non-current assets

283

379

Provision for environmental measures

87

1Other6

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss
Impairment loss

Total extraordinary loss
Income before income taxes and minority interests
Income taxes-current
Income taxes – deferred

75

370

462

4,680

25579
700

399-94

Total income taxes

1,280

304

Profit (loss)

3,400-278

Profit (loss) attributable to owners of parent

3,400-278* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-5-(Unit: millions of yen)
Q3 2015(April 1, 2015 toDecember 31, 2015)

Account Category
Profit (loss)

Q3 2016(April 1, 2016 toDecember 31, 2016)

3,400-278

-65

232

Other comprehensive incomeValuation difference on available for sale securities
Deferred gains or losses on hedges-0-0Foreign currency translation adjustment

16-1,555

Remeasurements of defined benefit plans, net of tax

4048

Share of other comprehensive income of entities accountedfor using equity method

6126

Total other comprehensive income-2-1,147

3,397-1,426

3,397-1,426

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-6-6. Segment Information【Business Segment Information】

3Q of Fiscal Year Ended March 31, 2016 (April 1, 2015 to December 31, 2015)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Inorganic
Chemicals

Organic
Chemicals

OtherBusinesses

38,43336,534

2,427





Total

38,433

Segment profit

2,061

Sales
(1) Sales to externalcustomers(2) Intersegment sales
and transfers

Elimination/
Corporate

Consolidated

77,395



77,395

1,575

1,575

-1,575



36,534

4,003

78,970-1,57577,395

1,422

253

3,736

-1,290

2,445

Total

(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,290 million) includes elimination of transaction between segments(￥82 million)
and corporate expenses not allocated to reporting segments(-￥1,373 million). Corporate expenses mainly comprise
general expenses not allocated segments.
(2) Segment profits are adjusted with the operating loss reported on the consolidated profit and loss statement for 1ST halfof Fiscal Year Ended March 31, 2016(April 1, 2015 to December 31, 2015).

(2) Geographical information
Net Sales(Unit: millions of yen)Japan
32,875

Asia

America

13,547

Europe9,448

Other21,304

Total219

77,395(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.
2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses.
Countries and regions included in each geographic segment are follows, excluding Japan:(1) Asia: China, Taiwan, South Korea, Thailand, Indonesia, and Singapore(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico(3) Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions(4) Other: Australia, New Zealand and Africa(3) Information concerning impairment loss or goodwill on noncurrent assets by segment
We do not note any significant changes.

【Business Segment Information】

3Q of Fiscal Year Ended March 31, 2017(April 1, 2016 to December31, 2016)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Adjustment

Amount reported on
consolidated financial
statements

74,535



74,535

1,907

1,907

-1,907



37,4094,092

76,442-1,90774,535

1,559

312

4,331

-1,4002,930

Inorganic
Chemicals

Organic
Chemicals

OtherBusinesses

34,94137,4092,185(2) Intersegment salesand transfers



Total

34,941

Segment profit

2,459

Sales
(1) Sales to externalcustomers* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-7-Total

(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,400 million) includes elimination of transaction between segments(￥4 million) andcorporate expenses not allocated to reporting segments(-￥1,405 million). Corporate expenses mainly comprise general
expenses not allocated segments.
(2) Segment profit are adjusted with the operating profit reported on the consolidated profit and loss statement for 1ST halfof Fiscal Year Ended March 31, 2017(April 1, 2016 to December31, 2016)(2)Geographical information
Net Sales(Unit: millions of yen)Japan
30,769Asia

America
12,937

Europe

8,767

Other

21,831

Total
230

74,535(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.
2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses.
Countries and regions included in each geographic segment are follows, excluding Japan:(1) Asia: China, Taiwan, South Korea, Thailand, Indonesia, and Singapore(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico(3) Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions(4) Other: Australia, New Zealand and Africa(3) Information concerning impairment loss or goodwill on noncurrent assets by segment(Significant impairment loss on noncurrent assets)
In the Inorganic Chemicals segment and the Organic Chemicals segment, we posted a fixed asset impairment loss of 62 million yen
for machineries and 13 million yen for equipment.
Note that the amount of impairment loss posted for the third quarter cumulative period under review is 75 million yen.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-8-