Summary of Consolidated Financial Statements
for Second Quarter of Fiscal Year Ending March 31, 2021(Japan GAAP)
November 6, 2020
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) Director(Name) Yasunobu Kawazoe
Scheduled date of securities report submission: November 9, 2020
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, 2021(April 1, 2020 to September 30, 2020)(1) Consolidated Operating Results
Net sales
millions of yen
48,79852,0062Q, 2020
2Q, 2019(Note) Comprehensive income:

%
-6.2
-0.4

(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%
millions of yen%
287 -89.3
22 -98.8-1,159 
2,699 -41.1
1,824 -63.4
469 -88.1

as of September 30, 2020: -1,309million yen (  %),as of September 30, 2019:-51million yen (  %)Net income per share

Net income per share after full dilution

Yen-29.0011.73

2Q, 2020
2Q, 2019

Yen(2) Consolidated Financial Position
Total assets
millions of yen
2Q, 2020
164,241
Year ended March 31, 2020
172,437(Reference) Equity capital:

Net assets
Millions of yen
74,56076,669

Capital adequacy ratio
%
45.4
44.5

as of September 30, 2020: 74,560million yen, as of March 31, 2020: 76,669million yen

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

September 30(Q2-end)Year ended March 31, 2020



Yen

Yen
0.00

Year ended March 31, 2021



0.00

December 31(Q3-end)Yen

Year ending March 31, 2021
(Forecast)March 31
(Year-end)

Annual



Yen
20.00

Yen
20.00



12.00

12.00

(Note) 1. Modification in the dividend forecast for current quarter: No modification
2. Breakdown of the year-end dividend for the year ended March 31, 2020:
Ordinary dividend
12.00 yen
Commemorative dividends of the 100th anniversary
8.00 yen
3. Forecast for Consolidated Results for the Full Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)(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
millionsof yen98,000%-3.0

Operating income
millions%of yen2,700-56.4

Ordinary income
millions%of yen2,300-57.0(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 yen
300
-87.3
7.50

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, 2020: 40,383,943 shares
As of March 31, 2020: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of September 30, 2020: 424,912 shares
As of March 31, 2020: 423,188 shares
3) Average number of outstanding shares during period
2Q 2020:39,960,135 shares
2Q 2019:39,964,438 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,2020(summary)

As of September 2020

ASSETS
Current Assets
Cash and deposits
Notes and accounts receivable – trade

20,92532,05917,55730,794Merchandise and finished goods

32,66431,558Work in process
Raw materials and supplies

6,047
15,044

6,261
14,696

Other
Allowance for doubtful accounts

4,683-1,0603,432-1,091

Total current assets

110,324

103,209

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

17,63420,943

Others, net

28,63624,159Total property, plant and equipment

46,27145,103

Intangible assets
Investments and other assets

470

580

Investment securities

5,932

5,909

Deferred tax assets
Net defined benefit asset

8,427
9

8,638
9

Other

1,085

873

Allowance for doubtful accounts

-84

-83

Total investments and other assets

15,371

15,34862,112

61,031

172,437

164,241

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,2020(summary)

Account Category

As of September 2020

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

17,43315,09915,86915,534

Income taxes payable
Reserve

684
371

684
354

1,113

1,495

Other

8,266

8,532

Total current liabilities

43,737

41,699

3,036

2,694

28,053
2,052

24,353
1,960－
12,884399

12,855710

Current portion of bonds

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
Other
Total non-current liabilities
Total Liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

69

5,603

5,338

52,02947,982

95,767

89,681

43,42043,42010,627

10,62725,298-727

23,340-729

78,61876,659

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

-429

-461

-1,216-1,366-302-271

Total accumulated other comprehensive income-1,948-2,098

Total net assets

76,66974,560Total Liabilities and Net Assets

172,437

164,241* 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 2019(April 1,2019 to
September 30,2019)

Account Category

Q2 2020(April 1,2020 to
September 30,2020)

Net sales

52,006

48,798

Cost of sales

37,85337,236Gross profit

14,153

11,561

Selling, general and administrative expenses

11,454

11,273Operating income

2,699

287

Interest income

28

17

Dividend income

258

93

Reversal of allowance for doubtful accounts－

450

Gain on sales of raw materials

89

134

Non-operating income

Other

45

83

Total non-operating income

420

778

313

278

Financial Fees

100

140

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

70
656

340
123

Non-operating expenses
Interest expenses

Other

154

161

1,295

1,044

1,824

22

Gain on insurance adjustment

62－

Total extraordinary income

62－

Loss on disposal of non-current assets

404

421

Loss on withdrawal from business

－

756

Other

55

－

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary loss
Income(loss) before income taxes and minority interests

459

1,178

1,427

-1,155

Income taxes-current

238

231

Income taxes – deferred

719

-227

Total income taxes

958

3

Net income

469-1,159Profit(loss) attributable to owners of parent

469-1,159* 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 2019(April 1,2019 to
September 30,2019)

Account Category

Q2 2020(April 1,2020 to
September 30,2020)

469-1,159Valuation difference on available-for-sale securities

-203

-32

Foreign currency translation adjustment

-392

-146

Remeasurements of defined benefit plans, net of tax

35

31

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

38

-3

-520

-150

-51

-1,309-51-1,309Profit(loss)
Other comprehensive income

Total 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, 2019 to
September 30, 2019)

Current consolidated FY(April 1, 2020 to
September 30, 2020)

Income(loss) before income taxes and minority interests

1,427-1,155

Depreciation and amortization

2,513

2,590

Loss on withdrawal from business－

756

Increase (decrease) in allowance for doubtful accounts

48

-451

Increase (decrease) in net defined benefit liability

125

-7

Increase (decrease) in allowance for doubtful accounts

-635

-91

Account Category
Cash flows from operating activities

Increase (decrease) in other provision

154

231

Interest and dividend income

-286

-110

Interest expenses

313

278

Foreign exchange losses (gains)

-15

-3

Share of (profit) loss of entities accounted for using equity
method70

340

Loss (gain) on disposal of noncurrent assets

104

88

Decrease (increase) in notes and accounts receivable-trade

2,583

1,241

Decrease (increase) in inventories-3,167

1,049

451

912

2,571

-2,343

Increase (decrease) in other current liabilities

709

1,235

Other

-57

-20

Subtotal

6,910

4,540

Interest and dividends income received

285

90

Interest expenses paid

-332

-300

Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable-trade

76

23

Payment associated with disaster loss

-131

－

Income taxes paid

-632

16

Cash flows from operating activities

6,175

4,370

Proceeds from insurance income* 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, 2019 to
September 30, 2019)

Account Category(Unit: millions of yen)
Current consolidated FY(April 1, 2020 to
September 30,
2020)

Cash flows from investing activities
Purchase of investment securities

-110

-6

Purchase of non-current assets-2,154-2,08475

61

Payments of loans receivable

-213

-157

Collection of loans receivable

121

113

Others33-2-2,248-2,076

-80

-212

2,000
-4,750－-3,823

-195
-479

-342
-799

-256

-261

-113
-2

-212
-1

-3,877-5,652

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
Cash dividends paid
Repayments of lease obligations
Repayments of installment payables
Net decrease (increase) in treasury shares
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

-97

-10

Net increase (decrease) in cash and cash equivalents-48-3,367

Cash and cash equivalents at beginning of period

23,98320,925

Cash and cash equivalents at end of period

23,935

17,557* 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, 2020(April 1, 2019 to September 30, 2019)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Elimination/
Consolidated
Corporate

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

25,90824,445

1,651

52,006

52,006





1,265

1,265

-1,265



Total

25,90824,445

2,917

53,272-1,26552,006

Segment profit

2,682

1,079

40

3,802

-1,103

2,699

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

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,103million) includes elimination of transaction between segments(￥58million) andcorporate expenses not allocated to reporting segments(-￥1,161million). 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
23,222

America
10,056

Europe
8,699

Other
9,947

Total
79

52,006(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 Ended March 31, 2021(April 1, 2020 to September 30, 2020)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Adjustment

Amount reported on
consolidated financial
statements

48,798



48,798

1,238

1,238

-1,238



25,176

3,168

50,037-1,23848,798

1,142

107

1,499

-1,212287

Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

21,692

25,176

1,929(2) Intersegment sales
and transfers





Total

21,692

Segment profit

250

Sales
(1) Sales to externalcustomers

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,212million) includes elimination of transaction between segments(￥60million) andcorporate expenses not allocated to reporting segments(-￥1,272million). 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
21,481

America
7,597Europe8,167

11,404

Other

Total
147

48,798(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-