Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended June 30, 2024
(Based on Japanese GAAP)
July 30, 2024
Company name:I S B CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

9702
President

URL

https://www.isb.co.jp/Inquiries:

Director,Executive General Manager,
Administrative Headquarters

Kazufumi WakaoMasaya Hirose

TEL

Scheduled date to file Semi-annual Securities Report:
Scheduled date to commence dividend payments:

August 14, 2024–

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
Yes

03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profitOrdinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended June 30, 2024
16,673
4.7
1,537
16.9
1,569
17.1
1,120
46.8
Six months ended June 30, 2023
15,919
12.3
1,315
18.9
1,340
18.3
762
9.9
Earnings per share

Diluted earnings per share

Yen
98.04
66.94

Six months ended June 30, 2024
Six months ended June 30, 2023

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
18,143
17,988

As of June 30, 2024
As of December 31, 2023

Equity ratio

Millions of yen
12,623
11,821%69.6
65.7

2. Cash dividends
Annual dividends per share

Year ended December 31, 2023
Year ending December 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen––

Yen–

Yen
42.00

Yen
42.00

–

46.00

46.00

Year ending December 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Net sales
Full year

Millions of yen
33,700Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
4.1
2,470(9.7)
2,550(9.3)
1,620
10.0
141.881

4. Notes(1) Significant changes in the scope of consolidation during the six months ended June 30, 2024:

No(2) Application of special accounting methods for preparing interim consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

11,437,521 shares As of December 31, 2023

11,417,900 shares

Number of treasury shares at the end of the period
As of June 30, 2024

149 shares As of December 31, 2023

149 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2024

11,424,435 shares Six months ended June 30, 2023

211,398,923 shares

Interim consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets

8,875,913
5,814,030

9,053,525
5,378,232

Prepaid expenses
Merchandise

165,695
692,511236,240
681,397

Supplies
Other

1,512
119,880

1,307
65,299Allowance for doubtful accounts(6,482)(4,138)15,663,060

15,411,863

614,435

608,743

Accumulated depreciation and impairment(357,627)(206,126)

Buildings and structures, net

256,807402,617Land

450,361

352,465

Other
Accumulated depreciation and impairment

883,791(673,089)

955,057(703,552)

210,701

251,504

917,870

1,006,588

Other

36,62630,373

Total intangible assets

36,62630,373

Investment securities
Long-term prepaid expenses

483,774
5,519573,639
10,472

Guarantee deposits
Deferred tax assets

449,994
369,433

806,246
241,492

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

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

362,596

62,696

1,371,318

1,694,548

2,325,815

2,731,509

17,988,876

18,143,373

(Thousands of yen)
As of December 31, 2023

As of June 30, 2024

Liabilities
Current liabilitiesNotes and accounts payable - trade

2,116,541

1,886,734

Contract liabilities
Short-term borrowings

189,947
120,000

86,192120,000

Accounts payable - otherAccrued expenses

1,456,499
91,937

1,481,594
112,401

Income taxes payable
Accrued consumption taxes

574,075
446,747444,880
359,064

Provision for bonuses
Provision for bonuses for directors (and other officers)

33,35650,01826,70325,064

Provision for loss on orders received
Provision for retirement benefits for directors

88,255145,000

6,119–

Asset retirement obligations
Other29,200
334,147

103,290360,952

Total current liabilities

5,675,726

5,012,998

Non-current liabilities
Retirement benefit liability

253,788

276,013

Provision for retirement benefits for directors (and otherofficers)

59,11866,263

Asset retirement obligations
Other

163,768
14,895

144,878
19,809Total non-current liabilities

491,570

506,964

6,167,296

5,519,962

Shareholders' equity
Share capital

2,378,921

2,392,430

Capital surplus
Retained earnings

2,983,099
6,235,068

2,996,608
6,875,571

(146)

(146)

11,596,942

12,264,464

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

162,756
61,880225,010
133,935

Total accumulated other comprehensive income

224,637

358,946

11,821,579

12,623,410

17,988,876

18,143,373

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

June 30, 2023

June 30, 2024

Net sales
Cost of sales

15,919,731
12,049,754

16,673,120
12,492,792

Gross profit

3,869,977

4,180,328

Selling, general and administrative expenses

2,554,275

2,642,566

Operating profit

1,315,701

1,537,762

Interest income
Compensation income

8,352
–

6,944
22,405

Dividend income
Dividend income of insurance

8,511
–

24,045
2,535

Reversal of allowance for doubtful accounts
Other

8,409
4,797

–
10,394

Total non-operating income

30,071

66,325Non-operating incomeNon-operating expenses
Interest expenses

367

408

Loss on sale of non-current assets
Loss on sale of notes receivable - trade

–
1,021

8,087
769

Settlement payments
Foreign exchange losses

–
3,613

6,636
17,923

Other

303

811

5,306

34,6371,340,467

1,569,450

107,858–

107,858–

Profit before income taxes

1,232,609

1,569,450

Income taxes - current
Income taxes - deferred

476,566(6,952)

348,623
100,778

Total income taxes

469,614449,401

Profit762,995

1,120,049

Profit attributable to owners of parent

762,9951,120,049

Total non-operating expenses
Ordinary profit
Extraordinary losses
Fraud related losses
Total extraordinary losses

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

June 30, 2023

June 30, 2024
762,995

1,120,049

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

33,97042,17562,25372,054

Total other comprehensive income

76,146

134,308

839,141

1,254,358

839,141

1,254,358

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

6Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

June 30, 2023

June 30, 2024

1,232,609

1,569,450

Depreciation
Amortization of goodwill

64,773
177,977

125,169–

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(20,078)
5,049(2,343)(6,652)

Increase (decrease) in provision for bonuses for directors (andother officers)4,648(24,953)

Increase (decrease) in provision for loss on orders received
Increase (decrease) in retirement benefit liability

21,543
16,361(82,136)
21,547

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

494(137,854)(16,864)–(30,990)(2,535)Compensation income
Interest expenses–367(22,405)
408

Fraud related losses
Settlement payments

107,858––
6,636

Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables–
518,222

8,087
337,199

Decrease (increase) in inventories
Increase (decrease) in trade payables(21,758)(166,006)

11,264(230,783)

Increase (decrease) in accounts payable - otherIncrease (decrease) in accrued consumption taxes(74,137)(32,538)

2,645(87,682)

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities

191
46,934(6,468)28,697

Other, net

17,251

5,982

Subtotal

1,882,897

1,482,282

16,86330,978––2,535
22,405Interest paid
Spending of fraud related(394)(107,858)(430)–

Settlement paidIncome taxes paid–(785,505)(6,636)(465,067)

Net cash provided by (used in) operating activities

1,006,002

1,066,067

Interest and dividend income
Dividend income of insurance

Interest and dividends received
Insurance amount of dividends received
Proceeds from compensation

7

(Thousands of yen)

Cash flows from investing activities
Purchase of property, plant and equipment

Six months ended

Six months ended

June 30, 2023

June 30, 2024
(69,626)(218,763)–(902)

108,367–

Purchase of investment securities
Proceeds from sale of investment securities(1,559)–(1,686)
837

Payments of leasehold and guarantee deposits
Proceeds from maturity of insurance funds

–
5,045

(366,038)–

Purchase of long-term prepaid expenses
Purchase of membership(2,597)(6,545)(6,597)–

Other, net(19,322)

10,698Net cash provided by (used in) investing activities(95,509)(473,182)

Repayments of lease liabilities
Dividends paid

(600)
(453,314)(450)(478,702)

Net cash provided by (used in) financing activities(453,915)(479,153)

Effect of exchange rate change on cash and cash equivalents

36,932

63,879Proceeds from sale of property, plant and equipment
Purchase of intangible assets

Cash flows from financing activities

Net increase (decrease) in cash and cash equivalents

493,509

177,611

Cash and cash equivalents at beginning of period

7,626,267

8,872,933

Cash and cash equivalents at end of period

8,119,776

9,050,545

8