Summary of Consolidated Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2023(Japan GAAP)
November 10, 2022
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) Hideo Takahashi
Contact:(Title) Director(Name) Yasunobu Kawazoe
Scheduled date of securities report submission: November ,11, 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 Second Quarter of Fiscal Year Ending March 31, 2023(April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results
Net sales
millions of yen
64,22756,1342Q, 2022
2Q, 2021(Note) Comprehensive income:

%
14.4
15.0

(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%
millions of yen%
33.7
3,362 -31.3
6,420
4,411 5.7
4,892 ⎯
4,800 ⎯
4,173 ⎯

As of September 30, 2022: 6,431million yen (30.3 %)As of September 30, 2021: 4,936million yen ( ⎯ %)Net income per share

Net income per share after full dilution

Yen
110.39104.462Q, 2022
2Q, 2021

Yen⎯⎯(Note)The year-on-year changes in operating income and ordinary income for the second quarter of fiscal year ending March 31,2022
exceeded 1,000% and therefor are referred to as “⎯”.
(2) Consolidated Financial Position
Total assets
millions of yen
2Q, 2022
190,836
Year ended March 31, 2022
185,758(Reference) Equity capital:

Net assets
Millions of yen
96,87991,869

Capital adequacy ratio
%
50.8
49.5

As of September 30, 2022: 96,879million yen
As of March 31, 2022: 91,869million yen

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

September 30(Q2-end)Year ended March 31, 2022

⎯

Yen

Yen
0.00

Year ending March 31, 2023

⎯

0.00

December 31(Q3-end)Yen

Year ending March 31, 2023
(Forecast)March 31
(Year-end)

Annual

⎯

Yen
36.00

Yen
36.00

⎯

40.00

40.00

(Note) 1. Modification in the dividend forecast for current quarter: Modification
3. Forecast for Consolidated Results for the Full Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)(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.)

Full year

Net sales
millions%of yen138,000
24.4

Operating income
millions%of yen8,500-26.5

Ordinary income
millions%of yen10,500-20.9

Net income
Earnings per share
millions%Yenof yen7,000-40.1
175.15(Note) Modification in the dividend forecast for current quarter: Modified
The Company resolved to repurchase its own shares at the board of directors meeting held on November 10, 2022. The impact ofrepurchase of own shares is not taken into account in regards to“EPS”in the forecast of consolidated financial results for FY2023.
* 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 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, 2022: 40,383,943 shares
As of March 31, 2022: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of September 30, 2022: 414,096 shares
As of March 31, 2022: 430,740 shares
3) Average number of outstanding shares during period
2Q 2022:39,960,493 shares
2Q 2021:39,955,705 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 the global 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)
As of March,2022(summary)

Account Category

As of September,2022

ASSETS
Current Assets
Cash and deposits
Notes and accounts receivable-trade and contract assets

27,07333,736

20,20835,951

Merchandise and finished goods

32,81335,127Work in process
Raw materials and supplies

4,633
20,051

5,97825,392

Other

4,190

5,731

Allowance for doubtful accounts-1,109-1,159Total current assets

121,389

127,29Machinery and equipment, net
Others, net

20,72325,812

20,761
23,762

Total property, plant and equipment

46,53544,513

Intangible assets

1,018

1,439

Investments and other assets
Investment securities

7,456

8,465

Deferred tax assets

8,883

8,267

10
550

16
953

Non-current assets
Property, plant and equipment

Net defined benefit asset
Other
Allowance for doubtful accounts

-85

-49

Total investments and other assets

16,815

17,653

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-3-64,36963,606

185,758

190,836

(Unit: millions of yen)
As of March,2022(summary)

Account Category

As of September, 2022

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

17,73916,06822,243
15,682

1,118

1,028

1,242
1,438

824
1,436

9,124

10,192

46,731

51,408

3,898

3,429

24,831
1,384

21,055
1,260

83

114

Other

13,058
3,901

12,827
3,860

Total non-current liabilities

47,15742,54893,88993,95643,42010,62743,420
10,636

38,592

41,565-734
91,905-726
94,895Long-term loans payable
Provision for environment and safety improvement
Other provision
Net defined benefit liability

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

405

313

Remeasurements of defined benefit plans

-297
-143

1,763
-93

Total accumulated other comprehensive income

-36

1,983

Foreign currency translation adjustment

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-

91,86996,879185,758

190,836(2) Consolidated Statements of Income(Unit: millions of yen)
Q2 2021(April 1,2021 toSeptember 30,2021)

Account Category

Q2 2022(April 1,2022 toSeptember 30,2022)

Net sales

56,13464,227

Cost of sales

40,97848,391Gross profit

15,156

15,836

Selling, general and administrative expenses

10,263

12,474

Operating income

4,892

3,362

Non-operating income
Interest income

88Dividend income

150

153

Equity in earnings of affiliates－

866

Foreign exchange income

251

2,308

Gain on sales of raw materials

99

92

Other

224

144

Total non-operating income

733

3,573

Interest expenses

281

242

Financial Fees

163

177

Equity in losses of affiliates

260

－

Other

120

96

Non-operating expenses

Total non-operating expenses

825

515

4,800

6,420

Gain on forgiveness of debts

552－

Gain on sale of investment securities

31

37

Other

73

－

Total extraordinary income

657

37

391

468

Ordinary income
Extraordinary income

Extraordinary loss
Loss on disposal of non-current assets
Total extraordinary loss

391

468

5,066

5,989

Income taxes-current
Income taxes – deferred

688
203

838
739

Total income taxes

892

1,577

Net income

4,173

4,411

Profit attributable to owners of parent

4,173

4,411

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 2021(April 1,2021 toSeptember 30,2021)

Account Category

Q2 2022(April 1,2022 toSeptember 30,2022)

4,173

4,411

Valuation difference on available-for-sale securities

150

-91

Foreign currency translation adjustment

615

1,833

Remeasurements of defined benefit plans, net of tax

26

49

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

-29

227

Total other comprehensive income

762

2,019

4,936

6,431

4,936

6,431

ProfitOther 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, 2021 toSeptember 30, 2021)

Current consolidated FY(April 1, 2022 toSeptember 30, 2022)

Income before income taxes

5,066

5,989

Depreciation and amortization

2,097

2,677

Gain on forgiveness of debt

-552

－

Account Category
Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts

126

Increase (decrease) in net defined benefit liability

-40

-201

Increase (decrease) in allowance for doubtful accounts

-124

-205

96

110

Interest and dividend income

-158

-162

Interest expenses

281

242

Foreign exchange losses (gains)

-92

-60

Share of (profit) loss of entities accounted for using equity
method260-866

Loss (gain) on sale of investment securities

-31

-37

Loss (gain) on disposal of noncurrent assets

91

71

Decrease (increase) in notes and accounts receivable-trade

1,282-1,163

Decrease (increase) in inventories

5,227-7,665Decrease (increase) in other current assets-939-1,499

Increase (decrease) in notes and accounts payable-trade

1,234

2,912

Increase (decrease) in other current liabilities

895

826

Other

-21

-9

14,585964Interest and dividends income received

158

162

Interest expenses paid

-278

-235

Increase (decrease) in other provision

Subtotal

Proceeds from insurance income
Income taxes refund (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-

22

10

-458

-1,205

14,029-303

(Unit: millions of yen)Previous consolidated FY(April 1, 2021 toSeptember 30, 2021)

Current consolidated FY(April 1, 2022 toSeptember 30, 2022)-6-6-1,818-297

Proceeds from sales of non-current assets

40

34

Payments of loans receivable

-9

-43

Collection of loans receivable

60

83

Proceeds from sales and redemption of short-term and long-term
investment securities

39

Others-1-576-1,696

-722

-330

－
-4,162

Account Category
Cash flows from investing activities
Purchase of investment securities
Purchase of non-current assets

Cash flows from investing activities

84

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Redemption of bonds-3,933-559

Cash dividends paid

-719

Repayments of lease obligations
Repayments of installment payables

-217
-246

Net decrease (increase) in treasury shares
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents-559-1,438
-206
-290

-2

-1

-6,009-6,658359

820

Net increase (decrease) in cash and cash equivalents

6,683-6,864

Cash and cash equivalents at beginning of period

25,941

27,073

Cash and cash equivalents at end of period

32,62420,208* 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, 2022(April 1, 2021 to September 30, 2021)(1) Information relating sales, profits, losses, for each reporting unit

Sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment profit(Unit: millions of yen)
Elimination/
Consolidated
Corporate

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

28,91825,686

1,529

56,134⎯56,134

⎯

⎯

1,577

1,577

-1,577⎯28,918
3,692

25,686
2,182

3,106
194

57,711
6,068-1,577-1,17656,134
4,892

Total

(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,176million) includes elimination of transaction between segments(￥36million) andcorporate expenses not allocated to reporting segments(-￥1,213million). 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
22,365

America
11,844

Europe
9,474

Other

12,232

Total
218

56,134(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 fixed assets by segment
We do not note any significant changes.
【Business Segment Information】
2Q of Fiscal Year Ending March 31, 2023(April 1, 2022 to September 30, 2022)(1) Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)Sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment profit

Adjustment

Amount reported on
consolidated financial
statements

64,227⎯64,227

1,140

1,140

-1,140

⎯

2,519
-27

65,367
4,843-1,140-1,48064,227
3,362

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

31,53631,312

1,379

⎯

0

31,5362,517

31,312
2,353

Total

(Note) 1. Adjustment include the following items(1) Adjustment in segment profit or loss (-￥1,480million) includes elimination of transaction between segments (￥104million)
and corporate expenses not allocated to reporting segments(-￥1,585million). Corporate expenses mainly comprise general
expenses not allocated segments.
(2) Segment profit or loss 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
25,333

America
12,924

Europe13,597

12,045

Other

Total
326

64,227(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 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-

(Significant Subsequent Event)（Stock repurchase）
We hereby announces that, at a meeting of its Board of Directors held November 10, 2022, we authorized repurchases of shares of
its common stock pursuant to Article 156 of the Companies Act of Japan (the "Companies Act"), as applied pursuant to Paragraph
3, Article 165 of the Companies Act, as described below.

(1) Purpose of stock repurchase
We consider the return of profits to shareholders to be an important goal for our management along with increasing corporate
value.
We will continue to flexibly repurchase its common stock while comprehensively considering factors such as its investment
in growth, level of its dividends, its cash reserves and the price level of its common stock to promote its capital efficiency.
.
(2) Details of repurchases①Class of share:②Total number of shares of common stock to be
repurchased:③Total amount:④Period:⑤Repurchase method :Common stock of the company
Up to 2.3 million shares(5.75% of the total number of shares of common stock
outstanding excluding treasury stock)
Up to 2 billion yen
From November 11, 2022 to March 31, 2023
Purchase on the Tokyo Stock Exchange（For reference) Number of shares of treasury stock (as of September 30, 2022)
Number of outstanding shares*: 39,969,847 shares
Number of shares of treasury stock: 414,096 shares*

Excluding shares of treasury stock* 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-11-