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, 2022
(Based on Japanese GAAP)
February 28, 2023
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
Headquarters

Yoichi Takeda

TEL

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

March 30, 2023
March 30, 2023

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

March 31, 2023
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, 2022 (from January 1, 2022 to December 31, 2022)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended December 31, 2022
28,952
10.6
2,319
24.0
2,401
23.7
1,423
28.3
Year ended December 31, 2021
26,176
7.1
1,869
13.7
1,940
13.3
1,110
11.6

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
26.7
15.6
8.0
–
12.1
13.9
7.1

Diluted earnings per
share

Yen
125.12
97.77

Year ended December 31, 2022
Year ended December 31, 2021
(2) Consolidated financial position

Total assets
As of December 31, 2022
As of December 31, 2021

Net assets

Equity ratio

Millions of yen
16,45814,361Millions of yen
10,682
9,557

Cash flows fromoperating activities
Millions of yen
1,926
1,457

Cash flows frominvesting activities
Millions of yen
(73)
(202)

Net assets per share
%
64.9
66.6

Yen
938.03841.13(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
(341)
7,626
(402)
6,071

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

Year ended December 31, 2021
Year ended December 31, 2022
Year ending December 31, 2023
(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

–
–

30.00
40.00

30.00
40.00

340
455

30.7
32.0

3.6
4.3

–

0.00

–

38.00

38.00

1

30.4

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)
Net sales
Millions of yen
Six months ending
June 30, 2023
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

14,500

2.3

1,000

(9.6)

1,000

(11.8)

550(20.8)

48.29

30,000

3.6

2,400

3.5

2,430

1.2

1,440

1.1

126.44

4. Notes(1) Changes in significant subsidiaries during the year ended December 31, 2022
(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

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, 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 December 31, 2022

112 shares As of December 31, 2021

112 shares

Average number of shares during the period
Year ended December 31, 2022

11,380,622 shares Year ended December 31, 2021

2

11,355,720 shares

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

As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,074,660
4,962,481

7,629,247–

Notes and accounts receivable - trade, and contract assets
Prepaid expenses–
143,2395,420,235
149,276

MerchandiseWork in process

265,733
81,042

726,140–

Supplies
Other

1,604
119,739

1,675
144,870

Allowance for doubtful accounts(35,345)(37,364)

11,613,155

14,034,081

490,913496,278

Accumulated depreciation and impairment(295,127)(301,898)

Buildings and structures, net

195,785

194,380Land

600,550

600,550

Other
Accumulated depreciation and impairment

667,618(472,878)

800,767(591,319)

194,740

209,447

991,076

1,004,378

Goodwill
Other711,908
44,411355,954
38,950Total intangible assets

756,320394,904

Investments and other assets
Investment securities

468,342

397,791

Long-term prepaid expenses
Guarantee deposits

6,601
293,330

6,454
319,054

Deferred tax assets
Other

150,775
82,152

246,079
55,937

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

1,001,202

1,025,317

2,748,598

2,424,600

14,361,754

16,458,681

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

Other, net
Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2021

As of December 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,635,335

2,067,088

120,000
1,063,210

120,000
1,239,505

Accrued expenses
Contract liabilities

102,563–

85,213
196,055

Income taxes payable
Accrued consumption taxes

448,664
401,042

769,582
375,858

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

28,076
17,39528,83622,895

Provision for loss on orders received
Other

16
407,572

3,088
323,263

Total current liabilities

4,223,878

5,231,386

Non-current liabilities
Retirement benefit liability

236,485

237,548

Provision for retirement benefits for directors (and otherofficers)

53,43054,034

Asset retirement obligations
Deferred tax liabilities

82,361
43,62089,686–

Other

164,163

163,211

Short-term borrowings
Accounts payable - otherTotal non-current liabilities

580,061

544,4814,803,939

5,775,867

Share capital
Capital surplus

2,346,932
2,951,111

2,361,512
2,965,691

Retained earnings
Treasury shares

4,117,861(92)

5,218,072(92)

Total shareholders' equity

9,415,812

10,545,183

Total liabilities
Net assets
Shareholders' equity

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

156,646

105,138

Foreign currency translation adjustment(14,644)

32,491

Total accumulated other comprehensive income

142,002137,630

9,557,814

10,682,814

14,361,754

16,458,681

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
December 31, 2021

Fiscal year ended
December 31, 2022

Net sales

26,176,541

28,952,996

Cost of sales

19,880,770

21,997,289

Gross profit

6,295,770

6,955,706

Selling, general and administrative expenses

4,425,779

4,636,447

Operating profit

1,869,991

2,319,258

Non-operating income
Interest income

10,527

15,496

Dividend income
Gain on sale of investment securities

39,144–

13,584
17,488Dividend income of insurance
Surrender value of insurance policies

37,172–

31,354
14,403

Other

21,031

19,624

Total non-operating income

107,875

111,952

862
475

748
476

Loss on sale of notes receivable - trade
Foreign exchange losses

2,192
–

1,888
17,518Compensation expenses
Loss on cancellation of leases

29,499––7,122

Non-operating expenses
Interest expenses
Share issuance costs

Other

4,097

2,296

Total non-operating expenses

37,12630,051

1,940,740

2,401,159

Gain on forgiveness of debts–

190,038

Total extraordinary income–

190,038–

196,289

Ordinary profit
Extraordinary income

Extraordinary losses
Fraud related losses–

196,289

Profit before income taxes

Total extraordinary losses

1,940,740

2,394,908

Income taxes - current
Income taxes - deferred

838,380(7,917)

1,104,290(133,325)

Total income taxes

830,463

970,964

Profit1,110,276

1,423,943

Profit attributable to owners of parent

1,110,276

1,423,943

5

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022

1,110,276

1,423,943

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(4,678)24,879(51,507)47,136

Total other comprehensive income

20,200(4,371)

1,130,477

1,419,572

1,130,477

1,419,572

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

6

Consolidated statements of changes in equity
Fiscal year ended December 31, 2021
(Thousands of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Total shareholders'equityTreasury shares

2,332,514

2,936,693

3,364,788(92)

8,633,903

2,332,514

2,936,693

3,364,788(92)

8,633,903

14,41814,418Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Issuance of new shares

28,836

Dividends of surplus(357,203)(357,203)

Profit attributable to ownersof parent

1,110,276

1,110,276

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

14,41814,418753,073–

781,9092,346,932

2,951,111

4,117,861(92)

9,415,812

Accumulated other comprehensive income

Balance at beginning of period

Valuation difference
on available-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated
other comprehensive
income161,324(39,523)

121,801

8,755,704

161,324(39,523)

121,801

8,755,704

Total net assets

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes during period
Issuance of new shares

28,836

Dividends of surplus(357,203)

Profit attributable to ownersof parent

1,110,276

Net changes in items otherthan shareholders' equity(4,678)24,87920,20020,200Total changes during period(4,678)24,87920,200802,110

Balance at end of period

156,646(14,644)

142,002

9,557,814

7

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'equityTreasury shares(92)

17,1572,346,932

2,951,111

14,58014,5804,135,019

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

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

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

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, 2021

December 31, 2022

1,940,740

2,394,908

Depreciation
Amortization of goodwill

105,030
451,182

131,523355,954

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses(1,546)(2,441)(2,398)760

Increase (decrease) in provision for bonuses for directors (andother officers)(58,589)

5,499

Increase (decrease) in provision for loss on orders received
Increase (decrease) in retirement benefit liability(1,594)
9,787

3,072
286

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

3,913

604

(49,671)(37,172)(29,080)(31,354)

862
–

748
196,289–
29,499

7,122
–

–
–

(17,488)(190,038)

Decrease (increase) in trade receivables
Decrease (increase) in inventories(513,624)
234,812(307,600)(379,435)

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

213,331
49,641

430,361
152,084

Increase (decrease) in accrued consumption taxes
Increase (decrease) in long-term accounts payable - other(141,848)(32,071)(13,350)–

Decrease (increase) in other current assets
Increase (decrease) in other current liabilities(48,025)47,081(37,694)
27,722Other, net

18,052

559

SubtotalInterest and dividend income
Dividend income of insurance
Interest expenses
Fraud related losses
Loss on cancellation of leases
Compensation expenses
Loss (gain) on sale of investment securities
Gain on forgiveness of debt

2,217,349

2,699,055

Interest and dividends received

49,67429,080Insurance amount of dividends received
Proceeds from gain on forgiveness of debts

37,172–

31,354
190,038

Interest paid
Compensation expenses paid

(911)
(14,000)(748)–

Subsidies received
Proceeds from insurance income

10,000
–

4,151
9,500

Spending of fraud related
Income taxes paid–
(841,789)(196,289)(840,016)

Net cash provided by (used in) operating activities

1,457,495

1,926,126

9

(Thousands of yen)

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

Fiscal year ended

Fiscal year ended

December 31, 2021

December 31, 2022

(148,236)(115,025)(500)(4,275)(6,257)(4,553)––

27,83775,727–(4,518)(30,436)(2,173)

Other, net(45,412)(18,296)

Net cash provided by (used in) investing activities(202,942)(73,178)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(20,000)(9,690)––

Redemption of bonds
Repayments of lease liabilities(16,000)(1,462)–(1,152)

Dividends paid

(355,705)(340,050)

Net cash provided by (used in) financing activities(402,858)(341,202)

Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from maturity of insurance funds
Purchase of membership
Purchase of long-term prepaid expenses

Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

23,86342,840Net increase (decrease) in cash and cash equivalents

875,558

1,554,586

Cash and cash equivalents at beginning of period

5,196,122

6,071,680

Cash and cash equivalents at end of period

6,071,680

7,626,267

10