Summary of Consolidated Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2019(Japan GAAP)
November 9, 2018
Listed Exchanges: TSE
Name of Listed Company: Ishihara Sangyo Kaisha, Ltd.
Code:
4028
URL http://www.iskweb.co.jp
Representative:(Title) Executive Director President (Name) Kenichi Tanaka
Contact:(Title) Managing Executive Officer (Name) Yasunobu Kawazoe
Scheduled date of securities report submission: November 12, 2018
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 Second Quarter of Fiscal Year Ended March 31, 2019(April 1, 2018 to September 30, 2018)(1) Consolidated Operating Results
Net sales
millions of yen
52,232
52,9042Q, 2018
2Q, 2017(Note) Comprehensive income:

%
-1.3
3.3

(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%
millions of yen
%
4,580
18.7
4,981 46.1
3,935 56.9
3,858 110.6
3,409
2,508 as of September 30, 2018: 3,479million yen( 24.1 %),as of September 30, 2017: 2,804million yen (  %)Net income per share

Net income per share after full dilution

Yen
98.46
62.74

2Q, 2018
2Q, 2017

Yen(2) Consolidated Financial Position
Total assets
millions of yen
2Q, 2018
166,641
Year ended March 31, 2018
159,767(Reference) Equity capital:

Net assets
Millions of yen
70,616
67,137

Capital adequacy ratio
%
42.4
42.0

as of September 30, 2018: 70,616million yen, as of March 31, 2018: 67,137million yen

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

September 30(Q2-end)Yen
Year ended March 31, 2018



Yen
0.00

Year ended March 31, 2019



0.00

December 31(Q3-end)March 31
(Year-end)

Yen

Year ending March 31, 2019
(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, 2019 (April 1, 2018 - March 31, 2019)(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
Operating income
Ordinary income
millions
millions
millions%%%of yenof yenof yenFull year
108,000
-0.0
7,400
-26.2
7,300
-13.2
(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
millions%Yenof yen4,800
39.4
120.09

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 September 30, 2018: 40,383,943 shares
As of March 31, 2018: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of September 30, 2018: 416,578 shares
As of March 31, 2018: 415,701 shares
3) Average number of outstanding shares during period
2Q 2018:39,967,885 shares
2Q 2017:39,973,065 shares*Quarterly financial results are outside the scope of quarterly review.
*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, and Main Notes(1) Consolidated Balance Sheet(Unit: millions of yen)Account Category

As of March,2018(summary)

As of September 2018ASSETS
Current Assets
Cash and deposits
Notes and accounts receivable – trade30,29729,88033,99830,678Merchandise and finished goods

22,90825,738Work in process
Raw materials and supplies

4,525
14,060

5,909
12,963

Other
Allowance for doubtful accounts

2,128
-413

2,092
-628

103,387

110,752

Total current assets
Non-current assets
Property, plant and equipment
Machinery and equipment, net

17,33017,509Others, net

23,512

22,951

Total property, plant and equipment

40,84340,460Intangible assets
Investments and other assets

391

378

Investment securities

4,184

4,166

Deferred tax assets
Net defined benefit asset

9,587
14

9,704
13

Other

1,493

1,277

Allowance for doubtful accounts

-133

-111

Total investments and other assets
Total non-current assets
Total Assets

15,14515,04956,38055,888

159,767

166,641(Unit: millions of 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-3-

As of March,2018(summary)

Account Category

As of September 2018

LIABILITIESCurrent Liabilities
Notes and accounts payable – trade
Short-term loans payable

12,08819,752

23,947

21,252Current portion of bonds

390
1,554

390
591

1,198
8,804

1,219
9,757

47,98452,963

2,010
20,575

1,815
19,220

3,641

3,423

40
12,77759
12,807

Income taxes payable
Reserve
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for environment and safety improvement
Other provision
Net defined benefit liability
Liabilities from application of equity method

908

948

Other

4,691

4,786

Total non-current liabilities

44,64543,061

92,62996,02543,42043,42010,627
14,735

10,627
18,671

Total Liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

-719

-720

68,064

71,998669

630-1,0710-1,524

-524

-488

－

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income-926-1,382

Total net assets

67,13770,616

Total Liabilities and Net Assets

159,767

166,641* 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-

(2) Consolidated Statements of Income(Unit: millions of yen)
Q2 2017(April 1,2017 to
September 30,2017)

Account Category

Q2 2018(April 1,2018 toSeptember 30,2018)

Net sales

52,90452,232

Cost of sales

37,68835,956Gross profit

15,215

16,276

Selling, general and administrative expenses

11,357

11,696

Operating income

3,858

4,580

Interest income

15

27

Dividend income
Foreign exchange income

155
169

82
715

Gain on sales of raw materials

107

109

Other

161

82

Total non-operating income

609

1,016

Interest expenses

484

385

Share of loss of entities accounted for using equity method
Other

299
273

15
214

1,058

615

3,409

4,981

Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income－－－

Gain on sales of non-current assets
Gain on insurance adjustment
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Loss on disaster

178
34
213

417

322

0

358

0

－

418

681

2,990

4,513

Income taxes-current
Income taxes – deferred

441
41

606
-28

Total income taxes

482

577

Net income

2,508

3,935

Profit attributable to owners of parent

2,508

3,935

Other
Total extraordinary loss
Income before income taxes and minority interests* 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)
Q2 2017(April 1,2017 to
September 30,2017)

Account Category
ProfitQ2 2018(April 1,2018 toSeptember 30,2018)

2,508

3,935

Valuation difference on available-for-sale securities

181

-39

Deferred gains or losses on hedges

00Foreign currency translation adjustment

114

-468

Remeasurements of defined benefit plans, net of tax

35

36

Share of other comprehensive income of entities accounted
for using equity method

-35

15

Total other comprehensive income

295

-455

2,804

3,479

2,804

3,479

Other comprehensive income

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-

(3) Statement of Consolidated Cash Flows(Unit: millions of yen)Previous consolidated FY(April 1, 2017 to
September 30, 2017)

Current consolidated FY(April 1, 2018 toSeptember 30, 2018)

Income before income taxes and minority interests

2,990

4,513

Depreciation and amortization

2,370

2,376

Loss on disaster0

358

Increase (decrease) in allowance for doubtful accounts

65

193

Account Category
Cash flows from operating activities

Increase (decrease) in net defined benefit liability

110

94

Increase (decrease) in provision for loss on liquidation ofsubsidiaries and associates-4-0

Increase (decrease) in allowance for doubtful accounts

-22

-267

Increase (decrease) in other provision

133

88

Interest and dividend income

-170

-109

Interest expenses

484

385

Foreign exchange losses (gains)

-74

-83

Share of (profit) loss of entities accounted for using equity
method299

15

Loss (gain) on disposal of noncurrent assets

142

-60

Decrease (increase) in notes and accounts receivable-trade-4,211-1,197

Decrease (increase) in inventories

2,998-3,509Decrease (increase) in other current assets

-308

53

Increase (decrease) in notes and accounts payable-trade

7,578

7,989

Increase (decrease) in other current liabilities

1,033

1,055

5

-41

13,421

11,853

82

106

-440

-374

1

40

-358

-1,621

12,706

10,005

Other
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from insurance income
Income taxes paid
Cash flows from operating activities* 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-

Previous consolidated FY(April 1, 2017 to
September 30, 2017)

Account Category

Cash flows from investing activities(Unit: millions of yen)
Current consolidated FY(April 1, 2018 toSeptember 30,
2018)

Payments into time deposits-0－

Purchase of investment securities-6-6-1,499-1,618

78

224

Payments of loans receivable

-262

-116

Collection of loans receivable

132

187

Others-51

4-1,609-1,323-480－-2,410-7,169-140-5,139-195

Purchase of non-current assets
Proceeds from sales of non-current assets

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Repayments of installment payables
Proceeds from deposits received
Repayment of deposits payable
Net decrease (increase) in treasury shares
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

3,500

-263

-242

-53
1,519

-105
1,001

-1,218-1,342-3-1-7,808-4,93554-45

Net increase (decrease) in cash and cash equivalents

3,343

3,701

Cash and cash equivalents at beginning of period

28,15630,297

Cash and cash equivalents at end of period

31,49933,998* 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-

6. Segment Information【Business Segment Information】
2Q of Fiscal Year Ended March 31, 2017(April 1, 2017 to September 30, 2017)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Elimination/
Consolidated
Corporate

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

26,991

24,496

1,416

52,904



52,904





925

925

-925



Total

26,991

24,496

2,342

53,829-925

52,904

Segment profit

4,621

24

97

4,743

-885

3,858

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

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥885million) includes elimination of transaction between segments(￥50million) andcorporate expenses not allocated to reporting segments(-￥935million). Corporate expenses mainly comprise general
expenses not allocated segments.
(2) Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated income statement.
(2) Geographical information
Net Sales(Unit: millions of yen)

Japan

Asia
22,510America
10,186

Europe
7,122

Other

12,964

Total
120

52,904(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 fixed assets by segment
We do not note any significant changes.
【Business Segment Information】
2Q of Fiscal Year Ended March 31, 2019(April 1, 2018 to September 30, 2018)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Adjustment

Amount reported on
consolidated financial
statements

52,232



52,232

884

884

-884



22,7192,611

53,116-884

52,232

962

48

5,664

-1,084

4,580

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

27,78522,7191,727(2) Intersegment sales
and transfers





Total

27,785

Segment profit

4,653

Sales
(1) Sales to externalcustomers

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,084million) includes elimination of transaction between segments(￥53million) andcorporate expenses not allocated to reporting segments(-￥1,137million). Corporate expenses mainly comprise general
expenses not allocated segments.
(2) Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated income statement.
* 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-9-

(2)Geographical information
Net Sales(Unit: millions of yen)

Japan

Asia
23,637

America
11,396

Europe
8,321

Other
8,787

Total
89

52,232(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.

* 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-10-