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 Three Months Ended March 31, 2023
(Based on Japanese GAAP)
April 28, 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,

Kazufumi Wakao
Yoichi TakedaAdministrative Headquarters
Scheduled date to file Quarterly Securities Report:

May 15, 2023

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

Holding of quarterly financial results meeting:

NoTEL

03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended March 31, 2023
Three months ended March 31, 2022

Millions of yen
8,366
7,056

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
18.6
1,030
48.0
1,042
49.5
579
30.3
5.5
695 (15.8)
697 (17.5)
445 (16.5)

Earnings per share

Diluted earnings per share

Yen
50.93
39.18

Three months ended March 31, 2023
Three months ended March 31, 2022

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

Net assetsMillions of yen
16,467
16,458Equity ratio

Millions of yen
10,817
10,682

%
65.7
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–

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 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
Six months ending
15,500
9.4
1,200
8.5
1,215
7.2
700
0.8
61.46
June 30, 2023
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 three months ended March 31, 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:

No
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 March 31, 2023

11,388,716 shares As of December 31, 2022

11,388,716 shares

Number of treasury shares at the end of the period
As of March 31, 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)
Three months ended March 31, 2023

11,388,604 shares Three months ended March 31, 2022

211,363,047 shares

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

As of March 31, 2023

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

7,629,247
5,420,235

7,553,093
5,478,867

Prepaid expenses
Merchandise

149,276
726,140

170,609621,220Work in process
Supplies

–
1,675

153
1,675

144,870(37,364)

178,311(4,510)14,034,081

13,999,422

496,278(301,898)

515,024(306,131)

194,380

208,892

600,550
800,767

600,550
821,161(591,319)(605,536)

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment
Buildings and structures, net
Land
Other
Accumulated depreciation and impairment
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

209,447

215,625

1,004,378

1,025,068

355,954

266,965

Other

38,95036,199Total intangible assets

394,904

303,164

Investment securities
Long-term prepaid expenses

397,791
6,454

408,951
6,161

Guarantee deposits
Deferred tax assets

319,054
246,079

328,528
338,097

Other
Allowance for doubtful accounts

55,937(0)57,889(0)Total investments and other assets

1,025,317

1,139,628

2,424,600

2,467,862

16,458,681

16,467,284

Investments and other assets

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2022

As of March 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

2,067,088

1,994,291

Contract liabilities
Short-term borrowings

196,055
120,000

183,894
120,000

Accounts payable - otherAccrued expenses

1,239,505
85,213772,607
189,176

Income taxes payable
Accrued consumption taxes

769,582
375,858

424,246
485,294Provision for bonuses
Provision for bonuses for directors (and other officers)

28,83622,895525,336
34,870

Provision for loss on orders received
Other

3,088
323,263

70,736290,347

Total current liabilities

5,231,386

5,090,802

Non-current liabilities
Retirement benefit liability

237,548245,318

Provision for retirement benefits for directors (and otherofficers)

54,03455,655

Asset retirement obligations
Other

89,686
163,211

94,761
163,143

Total non-current liabilities

544,481558,878

5,775,867

5,649,681

Shareholders' equity
Share capital

2,361,512

2,361,512

Capital surplus
Retained earnings

2,965,691
5,218,072

2,965,691
5,342,522

(92)

(92)

10,545,183

10,669,634

105,138
32,491

112,645
35,322

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

147,968

10,682,814

10,817,603

16,458,681

16,467,284

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

Three months ended

March 31, 2022

March 31, 2023

Net sales
Cost of sales

7,056,080
5,273,572

8,366,601
6,160,847

Gross profit

1,782,507

2,205,753

Selling, general and administrative expenses

1,086,513

1,175,677

695,993

1,030,076

Interest income
Reversal of allowance for doubtful accounts

3,175
–

3,895
8,250

Other

1,709

3,095

Total non-operating income

4,885

15,240

185
435

182
668

Foreign exchange losses
Other

2,788
32

1,417
165

Total non-operating expenses

3,441

2,434

697,437

1,042,883

Fraud related losses–

107,858

Total extraordinary losses–

107,858

Profit before income taxes

697,437

935,024

Income taxes - current

338,741

450,220

Income taxes - deferred(86,545)(95,191)

Total income taxes

252,195

355,029

Profit445,241

579,995

Profit attributable to owners of parent

445,241

579,995

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Loss on sale of notes receivable - trade

Ordinary profit
Extraordinary losses

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

Three months ended

Three months ended

March 31, 2022

March 31, 2023

445,241

579,995(20,450)
20,118

7,507
2,830

(331)

10,338444,909590,333

444,909590,333

Comprehensive income attributable toComprehensive income attributable to owners of parent

6