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, 2023
(Based on Japanese GAAP)
July 31, 2023
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

Kazufumi Wakao
Yoichi Takeda

TEL

Headquarters
Scheduled date to file Quarterly Securities Report:

August 14, 2023

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

Holding of quarterly financial results meeting:Yes

03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2023
Six months ended June 30, 2022

Millions of yen
15,91914,173

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
12.3
1,315
18.9
1,340
18.3
762
9.9
10.3
1,106
8.3
1,133
7.7
694
7.1

Earnings per share

Diluted earnings per share

Yen
66.94
61.07

Six months ended June 30, 2023
Six months ended June 30, 2022

Yen––(2) Consolidated financial position
Total assets
As of June 30, 2023
As of December 31, 2022

Net assets

Millions of yen16,352
16,458Equity ratio

Millions of yen
11,101
10,682

%
67.9
64.9

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
–

Yen–

Yen
40.00

Yen
40.00

–

42.00

42.00

Year ending December 31, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Percentages indicate year-on-year changesProfit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
31,000
7.1
2,600
12.1
2,645
10.2
1,590
11.7
139.61

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 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 June 30, 2023

112 shares As of December 31, 2022

112 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2023

11,398,923 shares Six months ended June 30, 2022

211,372,507 shares

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

As of June 30, 2023

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

7,629,247
5,420,235

8,122,7564,841,548

Prepaid expenses
Merchandise

149,276
726,140

205,252
747,893

Supplies
Other

1,675
144,870

1,681
112,602

Allowance for doubtful accounts(37,364)(6,118)14,034,081

14,025,617

496,278

514,517

Accumulated depreciation and impairment(301,898)(310,508)

Buildings and structures, net

194,380

204,008Land

600,550

600,550

Other
Accumulated depreciation and impairment

800,767(591,319)

842,849(621,461)

209,447

221,388

1,004,378

1,025,947

Goodwill
Other355,954
38,950177,977
33,840Total intangible assets

394,904211,817

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

446,665

Long-term prepaid expenses
Guarantee deposits

6,454
319,054

7,216
335,552

Deferred tax assets
Other

246,079
55,937239,388
72,467

Allowance for doubtful accounts(0)(11,742)

Total investments and other assets

1,025,317

1,089,549

Total non-current assets
Total assets

32,424,600

2,327,313

16,458,681

16,352,931

(Thousands of yen)
As of December 31, 2022

As of June 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

2,067,088

1,902,129

Contract liabilities
Short-term borrowings

196,055
120,000

143,198
120,000

Accounts payable - otherAccrued expenses

1,239,505
85,213

1,153,770
98,652

Income taxes payable
Accrued consumption taxes

769,582
375,858

461,607
339,006

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

28,83622,89536,27627,543

Provision for loss on orders received
Other

3,088
323,263

24,631
376,109

Total current liabilities

5,231,386

4,682,925

Non-current liabilities
Retirement benefit liability

237,548

254,325

Provision for retirement benefits for directors (and otherofficers)

54,03454,528Asset retirement obligations
Other

89,686
163,21193,634
166,288

Total non-current liabilities

544,481568,7775,775,867

5,251,703

Shareholders' equity
Share capital

2,361,512

2,378,921

Capital surplus
Retained earnings

2,965,691
5,218,072

2,983,099
5,525,523(92)(92)

10,545,183

10,887,451

105,138
32,491

139,10974,667

Total liabilities
Net assets

Treasury shares
Total 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

4

137,630

213,777

10,682,814

11,101,228

16,458,681

16,352,931

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, 2022

June 30, 2023

Net sales
Cost of sales

14,173,713
10,740,441

15,919,731
12,049,754

Gross profit

3,433,271

3,869,977

Selling, general and administrative expenses

2,327,057

2,554,275

Operating profit

1,106,213

1,315,701

Interest income
Dividend income

6,544
8,803

8,352
8,511

Surrender value of insurance policies
Reversal of allowance for doubtful accounts

14,403––
8,409

Non-operating income

Other

2,697

4,797

Total non-operating income

32,44930,071

372
476

367
31

Loss on sale of notes receivable - trade
Foreign exchange losses

895
1,744

1,021
3,613

Other

1,841

272

Total non-operating expenses

5,330

5,306

1,133,332

1,340,467–

107,858

Non-operating expenses
Interest expenses
Share issuance costs

Ordinary profit
Extraordinary losses
Fraud related losses–

107,858

Profit before income taxes

Total extraordinary losses

1,133,332

1,232,609

Income taxes - current
Income taxes - deferred

456,190(17,378)476,566(6,952)

Total income taxes

438,812469,614

Profit694,520

762,995

Profit attributable to owners of parent

694,520

762,9955

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

ProfitOther comprehensive income

Six months ended

Six months ended

June 30, 2022

June 30, 2023
694,520

762,995

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(41,475)
59,75733,97042,175

Total other comprehensive income

18,282

76,146

712,803

839,141

712,803

839,141

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, 2022

June 30, 2023

1,133,332

1,232,609

69,496
177,977

64,773
177,977

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(656)
1,515

(20,078)
5,049

Increase (decrease) in provision for bonuses for directors (andother officers)

12,691

4,648

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

593
7,473

21,543
16,361

Increase (decrease) in provision for retirement benefits for
directors (and other officers)(5,135)494

Interest and dividend income
Interest expenses(15,348)372(16,864)367

Fraud related losses
Decrease (increase) in trade receivables–
188,935

107,858
518,222

Decrease (increase) in inventories
Increase (decrease) in trade payables(108,233)(11,250)(21,758)(166,006)

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes(153,888)(117,981)(74,137)(32,538)

16,14256,164

191
46,934

Depreciation
Amortization of goodwill

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities
Other, net(378)

17,251

Subtotal

1,251,821

1,882,897

15,347

16,863(401)–(394)(107,858)

Income taxes paid

(458,899)(785,505)

Net cash provided by (used in) operating activities

807,867

1,006,002

Interest and dividends received
Interest paid
Spending of fraud related7

(Thousands of yen)

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

Six months ended

Six months ended

June 30, 2022

June 30, 2023
(41,073)(69,626)

Purchase of intangible assets
Purchase of investment securities(990)(1,629)(902)(1,559)Proceeds from maturity of insurance funds
Purchase of long-term prepaid expenses

75,727(408)

5,045(2,597)Purchase of membership
Other, net–
16,386(6,545)(19,322)Net cash provided by (used in) investing activities

48,012(95,509)

Cash flows from financing activities
Repayments of lease liabilities

(592)

(600)

Dividends paid

(339,206)(453,314)

Net cash provided by (used in) financing activities(339,799)(453,915)

Effect of exchange rate change on cash and cash equivalents

53,06436,932

Net increase (decrease) in cash and cash equivalents

569,145

493,509

Cash and cash equivalents at beginning of period

6,071,680

7,626,267

Cash and cash equivalents at end of period

6,640,825

8,119,776

8