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 Nine Months Ended September 30, 2022
(Based on Japanese GAAP)
October 31, 2022
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 WakaoYoichi Takeda

TEL

Headquarters
Scheduled date to file Quarterly Securities Report:

November 14, 2022

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

Holding of quarterly financial results meeting:No

03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2022 (from January 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2022
Nine months ended September 30, 2021

Millions of yen
21,426
19,138Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
12.0
1,722
29.5
1,762
28.0
1,049
33.9
5.8
1,330
5.1
1,376
6.0
784
12.0

Earnings per share

Diluted earnings per share

Yen
92.28
69.09

Nine months ended September 30, 2022
Nine months ended September 30, 2021

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2022
As of December 31, 2021

Net assets

Millions of yen
15,222
14,361Equity ratio

Millions of yen
10,352
9,557%
68.0
66.6

2. Cash dividends
Annual dividends per share

Year ended December 31, 2021
Year ending December 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen––

Yen
30.00

Yen
30.00

37.00

37.00

Year ending December 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
Percentages indicate year-on-year changes
Profit 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
28,673
9.5
2,286
22.2
2,353
21.2
1,404
26.5
123.281

4. Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2022
(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:

Yes
No

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 September 30, 2022

11,388,716 shares As of December 31, 2021

11,363,159 shares

Number of treasury shares at the end of the period
As of September 30, 2022

112 shares As of December 31, 2021

112 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2022

11,377,932 shares Nine months ended September 30, 2021

211,353,251 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2021

As of September 30, 2022

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

6,074,660
4,962,481

6,833,724
5,135,218

Prepaid expenses
Merchandise

143,239
265,733

174,146
599,137

Work in process
Supplies

81,042
1,604

1,017
1,027

Other
Allowance for doubtful accounts

119,739(35,345)

95,190(41,332)

11,613,155

12,798,130

490,913(295,127)

489,509(298,121)

195,785

191,388

600,550
667,618

600,550
780,684

Accumulated depreciation and impairment(472,878)(579,411)

Other, net

194,740

201,273

991,076993,211

Total current assets
Non-current assetsProperty, plant and equipment
Buildings and structures
Accumulated depreciation and impairment
Buildings and structures, net
Land
Other

Total property, plant and equipment
Intangible assets
Goodwill

711,908

444,942

Other

44,411

40,513

Total intangible assets

756,320

485,456

Investment securities
Long-term prepaid expenses

468,3426,601

394,034
6,822

Guarantee deposits
Deferred tax assets

293,330
150,775

294,392
226,943

Other
Allowance for doubtful accounts

82,152(0)23,801(0)

Total investments and other assets

1,001,202

945,994

2,748,598

2,424,663

14,361,754

15,222,793

Investments and other assets

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2021

As of September 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,635,335

1,760,876

Contract liabilities
Short-term borrowings–
120,000

38,268120,000

Accounts payable - otherAccrued expenses

1,063,210
102,563

614,398
136,486

Income taxes payable
Accrued consumption taxes

448,664
401,042453,689
291,365

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

28,076
17,395503,250
42,803

Provision for loss on order received
Other

16
407,572–
368,851

Total current liabilities

4,223,878

4,329,989

Non-current liabilities
Retirement benefit liability

236,485

240,128

Provision for retirement benefits for directors (and otherofficers)

53,43051,163

Asset retirement obligations
Deferred tax liabilities

82,361
43,62085,249–Other

164,163

163,352

Total non-current liabilities

580,061

539,893

4,803,939

4,869,882

Share capital
Capital surplus

2,346,932
2,951,111

2,361,512
2,965,691

Retained earnings
Treasury shares

4,117,861(92)

4,851,710(92)

Total shareholders' equity

9,415,812

10,178,821

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

156,646

103,467

Foreign currency translation adjustment(14,644)

70,621

Total accumulated other comprehensive income

142,002174,089

9,557,814

10,352,910

14,361,754

15,222,793

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)
Nine months ended

Nine months ended

September 30, 2021

September 30, 2022

Net sales
Cost of sales

19,138,269
14,496,439

21,426,195
16,261,481

Gross profit

4,641,830

5,164,713

Selling, general and administrative expenses

3,311,000

3,441,920

Operating profit

1,330,829

1,722,793

7,199
35,196

10,605
8,803––

17,48814,403Non-operating income
Interest income
Dividend income
Gain on sale of securities
Surrender value of insurance policies
Other

9,015

7,341

Total non-operating income

51,41158,643

803
475

562
476

1,753
2,778

1,439
14,611Non-operating expenses
Interest expenses
Share issuance costs
Loss on sale of notes receivable - trade
Foreign exchange losses
Other

178

2,195

5,989

19,285

Ordinary profit

1,376,252

1,762,151

Profit before income taxes

1,376,252

1,762,151

Income taxes - current
Income taxes - deferred

683,752(91,883)

818,171(105,952)

Total income taxes

591,868

712,218

Profit784,383

1,049,932

Profit attributable to owners of parent

784,383

1,049,932

Total non-operating expenses

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

September 30, 2021

September 30, 2022

784,383

1,049,932

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(4,697)
17,176(53,179)
85,266

Total other comprehensive income

12,47832,086

796,862

1,082,019

796,862

1,082,019

Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners of parent6