Summary of Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2022(Japan GAAP)
February 10, 2022
Listed Exchanges: TSE
Name of Listed Company: Ishihara Sangyo Kaisha, Ltd.
Code:
4028
URL https://www.iskweb.co.jp/
Representative:(Title) Executive Director President (Name) Hideo Takahashi
Contact:(Title) Director(Name) Yasunobu Kawazoe
Scheduled date of securities report submission: February 14, 2022
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 31,2022(April 1,2021 to December 31, 2021)(1) Consolidated Operating Results
Net sales
millions of yen
78,94767,874

3Q, 2021
3Q, 2020(Note) Comprehensive income:

%
16.3
-4.0

(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%
millions of yen
%
⎯
5,925
6,083
4,768
⎯
⎯
⎯
-508
-1,249-,2789⎯⎯as of December 31, 2021: 5,394 million yen (⎯%),
as of December 31,2020: -2,649 million yen (⎯%)
Net income per share

Net income per share after full dilution

Yen
119.34-69.803Q, 2021
3Q, 2020

Yen⎯⎯(2) Consolidated Financial Position
Total assets
millions of yen
3Q, 2021
180,862
Year ended March 31, 2021
180,021(Reference) Equity capital:

Net assets
Millions of yen
83,936
79,515

Capital adequacy ratio
%
46.4
44.2

as of December 31, 2021: 83,936million yen, as of March 31, 2021: 79,515 million yen

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

September 30(Q2-end)Yen
Year ended March 31, 2021

⎯

Yen
0.00

Year ended March 31, 2022

⎯

0.00

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

Yen
⎯
⎯

Year ending March 31, 2022
(Forecast)

Annual

Yen
18.00

Yen
18.00

25.00

25.00

(Note) 1. Modification in the dividend forecast for current quarter: No modification
3. Forecast for Consolidated Results for the Full Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)(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

Operating income

Ordinary income

Net income

Earnings per share

millionsof yen%millionsof yen%millionsof yen%millionsof yen%Yen

110,000

⎯

9,000

74.0

8,500

43.0

6,500

92.7

162.68(Note) Modification in the dividend forecast for current quarter: No modification(Note) Financial forecasts for the year ending March 31,2022 are in line with the Accounting Standard for Revenue Recognition.
This is why the rate of increase (decrease) in net sales in FY2020 before applying the standard cannot be announced.

* 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-4. Other information(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in consolidation scope): No(2) Adoption of simplified accounting treatment and special accounting treatment for quarterly consolidated statement: No(3) Changes in accounting principles, procedures, and the method of presentation
1) Changes due to revisions of accounting standards etc.
: Adopted
2) Changes other than those defined in 1) above: Adopted3) Changes in accounting procedures: No4) Changes in the method of presentation: No(4) Issued shares (common shares)
1) Issued shares as of period-end (including repurchased treasury shares)
As of December 31, 2021: 40,383,943 shares
As of March 31, 2021: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of December 31, 2021: 430,135shares
As of March 31, 2021: 427,338 shares
3) Average number of outstanding shares during period
3Q 2021: 39,955,201 shares
3Q 2020: 39,959,649 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(1) Consolidated Balance Sheet(Unit: millions of yen)Account Category

As of March 31, 2021
(summary)

As of December 31, 2021

AssetsCurrent assets
Cash and deposits

25,941

Notes and accounts receivable – trade34,235－－27,899Merchandise and finished goods

31,18028,302Work in process

5,040

5,509

Raw materials and supplies
Other

18,253
3,456

19,2194,510

Allowance for doubtful accounts-1,104-1,138

Total current assets

117,003

118,481

Machinery equipment, net

20,056

21,101Others, net

27,051

25,181

Total property, plant and equipment

47,10746,282

551

961

6,187
8,547

6,175
8,452

Notes and accounts receivable-trade and contract assets

34,178Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset

10

11

Other
Allowance for doubtful accounts

698
-84

582
-83

Total investments and other assets

15,35815,136

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-

63,01762,380180,021

180,862

(Unit: millions of yen)Account Category

As of March 31, 2021
(summary)

As of December 31, 2021

14,476
16,423

16,823
16,275

1,118

1,118

Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term loans payable
Currents portion of bonds
Accrued income taxes
Provision
Other

614
942

535
607

8,627

10,149Total current liabilities

42,20345,509Long-term 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
Other

5,017

4,353

33,1301,741

27,829
1,452

227

116

12,693451

12,923
737

5,040

4,003

Total long-term liabilities

58,302

51,416

Total Liabilities

100,506

96,92543,42043,42010,627

10,627

27,872-730

31,671-734

81,18984,984

Net 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

-308

-308

Foreign currency translation adjustment
Remeasurements of defined benefit plans-1,286

-699

-78

-40

Total accumulated other comprehensive income-1,674-1,048

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-

79,51583,936

180,021

180,862(2) Consolidated Statements of Income(Unit: millions of yen)
Q3 2020(April 1,2020 to
December 31, 2020)

Account Category

Q3 2021(April 1,2021 to
December 31, 2021

Net sales
Cost of sales

67,87451,491

78,94757,537Gross profit

16,382

21,409Selling, general and administrative expenses

16,891

15,483

-508

5,925

Operating income(loss) (-)
Non-operating income
Interest income

21

11

Dividend income

143

167

Foreign exchange gains⎯

672

Reversal of allowance for doubtful accounts

355⎯

Gain on sales of raw materials

135

100

Other

107

242

Total non-operating income

763

1,194

Non-operating expenses
Interest expenses

402

407

Financial fee

182

203

Share of loss of entities accounted for using equity method

435

262

Foreign exchange losses

297

⎯

Other

186

163

Total non-operating expenses

1,505

1,037

-1,2496,083

Gain on forgiveness of debts

⎯

552

Other

⎯

160

Total extraordinary income⎯

713

Ordinary income(loss) (-)
Extraordinary income

Extraordinary loss
Impairment loss

314⎯

Loss on disposal of non-current assets

502

804

Loss on business withdrawal

758⎯

Total extraordinary losses

1,574

804

Income (loss) before income taxes and minority interests (-)-2,824

5,991

Income taxes-current

313

938

Income taxes – deferred

-348

284

Total income taxes

-35

1,222

Net income (loss) (-)-2,789

4,768

Profit (loss) attributable to owners of parent (-)-2,7894,768* 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 2020(April 1,2020 to
December 31, 2020)

Account Category
Net income (loss) (-)

Q3 2021(April 1,2021 to
December 31, 2021)-2,7894,768

Valuation difference on available-for-sale securities

190

0

Foreign currency translation adjustment

-83

608

Remeasurements of defined benefit plans

47

38

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

-13

-20

Total other comprehensive income

139

626

-2,6495,394-2,6495,394

Other comprehensive income

Comprehensive income(Comprehensive income attributable to)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) Notes to Quarterly Consolidated Financial Statements(Note to events and conditions which indicate there could be substantial doubt about going concern assumption)
We do not note significant changes.

(Note to significant changes in shareholders' equity)
We do not note 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-7-6. Segment Information【Business Segment Information】
3Q of Fiscal Year Ended March 31, 2021 (April 1,2020 to December 31, 2020)(1) Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Elimination/
Consolidated
Corporate

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

34,59830,6482,627

67,874⎯67,874

⎯

⎯

3,503

3,503

-3,503⎯

Total

34,59830,6486,130

71,377-3,50367,874

Segment profit or loss (-)

-667

1,772

294

1,399

-1,908-508

Sales(1) Sales to externalcustomers(2) Intersegment sales andtransfers

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit or loss (-￥1,908 million) includes elimination of transaction between segments(￥28million) and corporate expenses not allocated to reporting segments(-￥1,936 million). Corporate expenses mainlycomprise general expenses not allocated segments.
(2) Segment profit or loss is adjusted to be consistent with operating loss shown on the quarterly consolidated income
statement.

(2) Geographical information
Net Sales(Unit: millions of yen)Japan
32,999Asia
12,645

America

Europe10,097Other

11,935

Total
196

67,874(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, Singapore and India(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 non-current assets by segment(Significant impairment loss on non-current assets)
In the Inorganic Chemicals segment , we posted an impairment loss on non-current asset of 314million yen for machineries andequipment.
In the Organic Chemicals segment , we posted an impairment loss on non-current asset of 54million yen for machineries andequipment.

* 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-

【Business Segment Information】
3Q of Fiscal Year Ended March 31, 2022(April 1,2021 to December31, 2021)(1) Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Adjustment

Amount reported on
consolidated financial
statements

78,947⎯78,947

3,265

3,265

-3,625⎯32,522

5,446

82,212-3,26578,947

2,773

352

7,746

-1,821

5,925

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

44,24232,5222,181(2) Intersegment sales
and transfers

⎯

⎯

Total

44,242

Segment profit

4,620

Sales
(1) Sales to externalcustomers

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,821 million) includes elimination of transaction between segments (￥45million)
and corporate expenses not allocated to reporting segments(-￥1,866 million). 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
33,522

Asia

America
19,040Europe12,711

Other

13,427

Total
245

78,947(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, Singapore, and India(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 non-current assets by segment
We do not note significant changes.
(4) Matters Regarding the Changes in Reportable Segment, etc.
The Accounting Standard for Revenue Recognition, etc. has been applied since the beginning of the first quarter of the current
consolidated fiscal year. As a result of a change in the method of accounting treatment for revenue recognition, the method of
measuring profit or loss in each business segment has also been changed accordingly.
As a result of this change, segment sales for the third three months of the current consolidated fiscal year decreased by 61 million
yen for the “Inorganic Chemicals” segment, 1,083 million yen for the “Organic Chemicals” segment, and 1,086 million yen for the“Other Business” segment, compared with the previous method. Also, segment profit of the “Inorganic Chemicals” decreased by
6 million yen and segment profit of the “Other Business” decreased by 2 million, compared with the previous method.

* 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-