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, 2023
(Based on Japanese GAAP)
October 30, 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 WakaoYoichi Takeda

TEL

Headquarters
Scheduled date to file Quarterly Securities Report:

November 14, 2023

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

Holding of quarterly financial results meeting:No03-3490-1761(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2023 (from January 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended September 30, 2023
Nine months ended September 30, 2022

Millions of yen
24,073
21,426Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
12.4
2,093
21.5
2,143
21.7
1,241
18.3
12.0
1,722
29.5
1,762
28.0
1,049
33.9

Earnings per share

Diluted earnings per share

Yen
108.9092.28

Nine months ended September 30, 2023
Nine months ended September 30, 2022

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

Net assets

Millions of yen
17,18916,458Equity ratio

Millions of yen
11,607
10,682

%
67.5
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
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 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
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 nine months ended September 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:

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 September 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 September 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)
Nine months ended September 30, 2023

11,405,281 shares Nine months ended September 30, 2022

211,377,932 shares

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

As of September 30, 2023

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

7,629,247
5,420,235

8,333,501
5,544,680

Prepaid expenses
Merchandise

149,276
726,140

198,367
631,784

Supplies
Other

1,675
144,870

1,681
125,406

Allowance for doubtful accounts(37,364)(7,055)

14,034,081

14,828,366

496,278

517,245

Accumulated depreciation and impairment(301,898)(314,929)

Buildings and structures, net

194,380

202,315Land

600,550

600,550

Other
Accumulated depreciation and impairment

800,767(591,319)

856,967(643,982)

209,447

212,985

1,004,378

1,015,851

Goodwill
Other355,954
38,95088,98840,059Total intangible assets

394,904

129,048

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

465,149

Long-term prepaid expenses
Guarantee deposits

6,454
319,0546,225
365,656

Deferred tax assets
Other

246,079
55,937

316,630
74,259Allowance for doubtful accounts(0)(11,742)

Total investments and other assets

1,025,317

1,216,178

Total non-current assets
Total assets

32,424,600

2,361,079

16,458,681

17,189,445

(Thousands of yen)
As of December 31, 2022

As of September 30, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade

2,067,088

1,887,541

Contract liabilities
Short-term borrowings

196,055
120,000

315,676
120,000

Accounts payable - otherAccrued expenses

1,239,505
85,213887,228
178,457

Income taxes payable
Accrued consumption taxes

769,582
375,858

391,792
396,765

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

28,83622,895572,398
38,995

Provision for loss on orders received
Other

3,088
323,263

21,235
196,572

Total current liabilities

5,231,386

5,006,664

Non-current liabilities
Retirement benefit liability

237,548

256,595

Provision for retirement benefits for directors (and otherofficers)

54,03456,823

Asset retirement obligations
Other

89,686
163,21195,714
166,074

Total non-current liabilities

544,481575,2075,775,867

5,581,871

Shareholders' equity
Share capital

2,361,512

2,378,921

Capital surplus
Retained earnings

2,965,691
5,218,072

2,983,099
6,004,525

(92)

(92)

10,545,183

11,366,453

105,138
32,491150,023
91,096

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

241,119

10,682,814

11,607,573

16,458,681

17,189,445

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, 2022

September 30, 2023

Net sales
Cost of sales

21,426,195
16,261,481

24,073,775
18,229,322

Gross profit

5,164,713

5,844,452

Selling, general and administrative expenses

3,441,920

3,751,011

Operating profit

1,722,793

2,093,441

Interest income
Insurance claim income

10,605–

12,881
17,500

Dividend income
Gain on sale of securities

8,803
17,4889,123–

Surrender value of insurance policies
Reversal of allowance for doubtful accounts

14,403––8,610

Non-operating income

Other

7,341

9,182

Total non-operating income

58,64357,297

562
476

551
31

1,439
14,611

1,398
4,618

Non-operating expenses
Interest expenses
Share issuance costs
Loss on sale of notes receivable - trade
Foreign exchange losses
Other

2,195

376

Total non-operating expenses

19,285

6,975

1,762,151

2,143,763–

107,858–

107,858

Profit before income taxes

1,762,151

2,035,905

Income taxes - current
Income taxes - deferred

818,171(105,952)

884,527(90,620)

Total income taxes

712,218

793,907

Profit

1,049,932

1,241,997

Profit attributable to owners of parent

1,049,932

1,241,997

Ordinary profit
Extraordinary losses
Fraud related losses
Total extraordinary losses

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

ProfitOther comprehensive income

Nine months ended

Nine months ended

September 30, 2022

September 30, 2023

1,049,932

1,241,997

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(53,179)
85,26644,88458,604

Total other comprehensive income

32,086

103,489

1,082,019

1,345,487

1,082,019

1,345,487

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

6