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 Year Ended December 31, 2023
(Based on Japanese GAAP)
February 14, 2024
Company name:I S B CORPORATION

Stock exchange listing: Tokyo
Stock code:
9702

URL

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

Representative:

President
Director,

Kazufumi Wakao

Inquiries:

Executive General Manager, Administrative
HeadquartersYoichi Takeda

TEL

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

March 27, 2024
March 27, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

March 28, 2024
Yes

Holding of financial results meeting:Yes

03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2023
32,388
11.9
2,734
17.9
2,810
17.0
1,472
3.4
Year ended December 31, 2022
28,952
10.6
2,319
24.0
2,401
23.7
1,423
28.3

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
13.1
16.3
8.4
–
26.7
15.6
8.0

Diluted earnings pershare

Yen
129.07125.12

Year ended December 31, 2023
Year ended December 31, 2022
(2) Consolidated financial position

Total assets
As of December 31, 2023
As of December 31, 2022

Net assets

Equity ratio

Millions of yen
17,98816,458Millions of yen
11,821
10,682

Cash flows fromoperating activities
Millions of yen
1,945
1,926

Cash flows frominvesting activities
Millions of yen
(270)
(73)

Net assets per share%
65.7
64.9

Yen
1,035.37
938.03(3) Consolidated cash flows

Year ended December 31, 2023
Year ended December 31, 2022

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(454)
8,872
(341)
7,626

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended December 31, 2022
Year ended December 31, 2023
Year ending December 31, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

––

0.00
0.00

––

40.00
42.00

40.00
42.00

455
479

32.0
32.5

4.3
4.1

–0.00

–

42.00

42.00

1

32.0

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Net sales
Millions of yen
Six months ending
June 30, 2024
Full year

Percentages 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

16,3002.4

1,070(18.7)

1,100(17.9)680(10.9)

59.60

33,5003.42,320(15.1)

2,400(14.6)

1,500

1.9

131.404. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

11,417,900 shares As of December 31, 2022

11,388,716 shares

Number of treasury shares at the end of the period
As of December 31, 2023

149 shares As of December 31, 2022

112 shares

Average number of shares during the period
Year ended December 31, 2023

11,408,428 shares Year ended December 31, 2022

211,380,622 shares

Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

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

7,629,247
5,420,235

8,875,913
5,814,030

Prepaid expenses
Merchandise

149,276
726,140

165,695
692,511

Supplies
Other

1,675
144,870

1,512
119,880

Allowance for doubtful accounts(37,364)(6,482)

14,034,081

15,663,060

496,278

614,435

Accumulated depreciation and impairment(301,898)(357,627)

Buildings and structures, net

194,380

256,807Land

600,550

450,361

OtherAccumulated depreciation and impairment

800,767(591,319)

883,791(673,089)

209,447

210,701

1,004,378

917,870

Goodwill
Other355,954
38,950–36,626

Total intangible assets

394,904

36,626

Investments and other assets
Investment securities

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

Other, net
Total property, plant and equipment
Intangible assets

397,791

483,774

Long-term prepaid expenses
Guarantee deposits

6,454
319,0545,519
449,994

Deferred tax assets
Other

246,079
55,937369,433
62,596

Allowance for doubtful accounts(0)–

Total investments and other assets

1,025,317

1,371,318

Total non-current assets
Total assets

32,424,600

2,325,815

16,458,681

17,988,876

(Thousands of yen)
As of December 31, 2022

As of December 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

2,067,088

2,116,541

120,000
1,239,505

120,000
1,456,499

Accrued expenses
Contract liabilities

85,213
196,055

91,937
189,947

Income taxes payable
Accrued consumption taxes

769,582
375,858

574,075
446,747

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

28,83622,89533,35650,018Provision for retirement benefits for directors (currentliabilities)–

145,000

3,088–

88,25529,200

Short-term borrowings
Accounts payable - other

Provision for loss on orders received
Asset retirement obligations
Other
Total current liabilities

323,263

334,147

5,231,386

5,675,726

237,548

253,788

54,034

59,11889,686

163,768

Non-current liabilities
Retirement benefit liability
Provision for retirement benefits for directors (and otherofficers)
Asset retirement obligations
Other

163,211

14,895

Total non-current liabilities

544,481491,570

5,775,867

6,167,296

Share capital
Capital surplus

2,361,512
2,965,691

2,378,921
2,983,099

Retained earnings
Treasury shares

5,218,072(92)

6,235,068(146)

Total shareholders' equity

10,545,183

11,596,942

105,138

162,756

32,491

61,880Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4137,630

224,637

10,682,814

11,821,579

16,458,681

17,988,876

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2022

Fiscal year ended
December 31, 2023

Net sales

28,952,996

32,388,135

Cost of sales

21,997,289

24,589,466

Gross profit

6,955,706

7,798,668

Selling, general and administrative expenses

4,636,447

5,064,474

Operating profit

2,319,258

2,734,193

Non-operating income
Interest income

15,496

16,922

Dividend income
Gain on sale of investment securities

13,584
17,48813,005–

Dividend income of insurance
Insurance claim income

31,3549,500

13,767
17,500Surrender value of insurance policies
Reversal of allowance for doubtful accounts

14,403
–

–
8,760

Other

10,12419,805

Total non-operating income

111,952

89,761

748
476

737
31

Loss on sale of notes receivable - trade
Foreign exchange losses

1,888
17,518

1,746
10,260Loss on cancellation of leases
Other

7,122
2,296

–
629

Total non-operating expenses

30,051

13,4062,401,159

2,810,548

Gain on forgiveness of debts

190,038–

Total extraordinary income

190,038––

188,492

Non-operating expenses
Interest expenses
Share issuance costs

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment losses
Provision for retirement benefits for directors (and otherofficers)
Fraud related losses–

145,000

196,289

107,858

Total extraordinary losses

196,289

441,350

Profit before income taxes

2,394,908

2,369,198

Income taxes - current
Income taxes - deferred

1,104,290(133,325)

1,044,392(147,734)

970,964

896,657

Profit1,423,943

1,472,540

Profit attributable to owners of parent

1,423,943

1,472,540

Total income taxes

5Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

1,423,943

1,472,540

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(51,507)47,136

57,61829,388

Total other comprehensive income(4,371)87,006

1,419,572

1,559,546

1,419,572

1,559,546

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

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2022
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

2,346,932

Capital surplus

Retained earnings

2,951,111

4,117,861

Cumulative effects ofchanges in accounting
policies
Restated balance

Total shareholders'equity

Treasury shares(92)

17,1572,346,932

2,951,11114,580

14,5804,135,019

9,415,812
17,157(92)

9,432,970

Changes during period
Issuance of new shares

29,160

Dividends of surplus(340,891)(340,891)

Profit attributable to ownersof parent

1,423,943

1,423,943

Purchase of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

14,58014,5801,083,052–

1,112,213

2,361,512

2,965,691

5,218,072(92)

10,545,183

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income156,646(14,644)

142,002

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net assets

9,557,814
17,157

156,646(14,644)

142,002

9,574,972

Changes during period
Issuance of new shares

29,160

Dividends of surplus(340,891)

Profit attributable to ownersof parent

1,423,943

Purchase of treasury shares
Net changes in items otherthan shareholders' equity(51,507)47,136(4,371)(4,371)

Total changes during period(51,507)47,136(4,371)

1,107,841

Balance at end of period

105,138

32,491

137,630

10,682,814

7

Fiscal year ended December 31, 2023
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

2,361,512

2,965,691

17,40817,408Retained earnings
5,218,072

Treasury shares(92)

Total shareholders'equity
10,545,183

Changes during period
Issuance of new shares

34,816

Dividends of surplus(455,544)(455,544)

Profit attributable to ownersof parent

1,472,540

1,472,540

Purchase of treasury shares

(53)

(53)

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

17,40817,4081,016,996(53)

1,051,758

2,378,921

2,983,099

6,235,068(146)

11,596,942

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income105,138

32,491

137,630

Total net assets

10,682,814

Changes during period
Issuance of new shares

34,816

Dividends of surplus(455,544)

Profit attributable to ownersof parent

1,472,540

Purchase of treasury shares(53)

Net changes in items otherthan shareholders' equity

57,61829,38887,00687,006

Total changes during period

57,61829,38887,006

1,138,765

Balance at end of period

162,756

61,880224,637

11,821,579

8

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

2,394,908

2,369,198

DepreciationImpairment losses

131,523–

136,640
188,492

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

355,954(2,398)355,954(32,873)

760

4,519

5,499

27,123

3,072

85,167286

15,945

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in provision for loss on orders received
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income604

150,083(29,080)(29,928)

Dividend income of insurance
Interest expenses(31,354)748(13,767)
737

Fraud related losses
Loss on cancellation of leases

196,289
7,122

107,858–

Loss (gain) on sale of investment securities
Gain on forgiveness of debts(17,488)(190,038)––

Decrease (increase) in trade receivables
Decrease (increase) in inventories(307,600)(379,435)(395,007)
33,792

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other430,361
152,084

48,24065,824

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other current assets(13,350)(37,694)

75,44325,266

Increase (decrease) in other current liabilities
Other, net

27,722559

11,88016,914

2,699,055

3,247,506

Interest and dividends received
Insurance amount of dividends received

29,08031,35429,92813,767

Proceeds from gain on forgiveness of debts
Interest paid

190,038(748)–(737)

4,151
9,500

1,140
17,500Spending of fraud related
Income taxes paid

(196,289)(840,016)(107,858)(1,255,384)

Net cash provided by (used in) operating activities

1,926,126

1,945,861

Subtotal

Subsidies received
Proceeds from insurance income9(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

December 31, 2022

December 31, 2023

(115,025)(113,306)

Purchase of intangible assets
Purchase of investment securities(6,257)(4,553)(10,804)(4,583)

Proceeds from sale of investment securities
Payments of leasehold and guarantee deposits

27,837(35,753)–(136,587)

Proceeds from maturity of insurance funds
Purchase of membership

75,727(30,436)

5,045(8,245)Purchase of long-term prepaid expenses
Other, net(2,173)
17,457(3,706)2,101

Net cash provided by (used in) investing activities(73,178)(270,086)

Cash flows from financing activities
Repayments of lease liabilities(1,152)(1,082)

Purchase of treasury shares
Dividends paid–(340,050)(53)(453,722)

Net cash provided by (used in) financing activities(341,202)(454,859)

Effect of exchange rate change on cash and cash equivalents

42,84025,751

Net increase (decrease) in cash and cash equivalents

1,554,586

1,246,666

Cash and cash equivalents at beginning of period

6,071,680

7,626,267

Cash and cash equivalents at end of period

7,626,267

8,872,933

10