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, 2022
(Based on Japanese GAAP)
April 28, 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 Wakao
Yoichi Takeda

Headquarters
Scheduled date to file Quarterly Securities Report:

May 16, 2022

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, 2022 (from January 1, 2022 to March 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended March 31, 2022
Three months ended March 31, 2021

Millions of yen
7,056
6,686

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.5
695 (15.8)
697 (17.5)
445 (16.5)
5.5
826
33.5
845
36.1
532
65.5

Earnings per share

Diluted earnings per share

Yen
39.18
47.00

Three months ended March 31, 2022
Three months ended March 31, 2021

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

Net assets

Millions of yen
14,485
14,361Equity ratio

Millions of yen
9,686
9,557

%
66.9
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

Yen–

Yen
30.00

Yen
30.00

0.00

–

33.00

33.00

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
Six months ending
13,5005.1
890 (12.9)
910 (13.6)
530 (18.3)
46.64
June 30, 2022
Full year
28,000
7.0
2,070
10.7
2,130
9.8
1,240
11.7
109.131

4. Notes(1) Changes in significant subsidiaries during the three months ended March 31, 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 March 31, 2022

11,363,159 shares As of December 31, 2021

11,363,159 shares

Number of treasury shares at the end of the period
As of March 31, 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)
Three months ended March 31, 2022

11,363,047 shares Three months ended March 31, 2021

211,339,792 shares

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

As of March 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

6,074,660
4,962,481

6,094,494–

Notes and accounts receivable - trade, and contract assets
Prepaid expenses–
143,2395,070,531
162,207

MerchandiseWork in process

265,733
81,042

409,001–

Supplies
Other

1,604
119,739

1,604
122,623

Allowance for doubtful accounts(35,345)(37,691)

11,613,155

11,822,770

490,913481,543

Accumulated depreciation and impairment(295,127)(290,263)

Buildings and structures, net

195,785

191,280Land

600,550

600,550

Other
Accumulated depreciation and impairment

667,618(472,878)

656,371(473,959)

194,740

182,411

991,076

974,242

Goodwill
Other711,908
44,411

622,920
41,075

Total intangible assets

756,320

663,995

Investments and other assets
Investment securities

468,342441,242

Long-term prepaid expenses
Guarantee deposits

6,601
293,330

6,232
292,828

Deferred tax assets
Other

150,775
82,152200,816
83,643

Allowance for doubtful accounts

(0)

(0)

Total investments and other assets

1,001,202

1,024,763

2,748,598

2,663,001

14,361,754

14,485,772

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 March 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

1,635,335

1,785,265

Contract liabilities
Short-term borrowings–
120,000

1,782
120,000

Accounts payable - otherAccrued expenses

1,063,210
102,563638,700
133,178

Income taxes payable
Accrued consumption taxes

448,664401,042

315,036
417,252

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

28,076
17,395477,888
28,498Provision for loss on order received
Other

16
407,572

5,650
344,908

Total current liabilities

4,223,878

4,268,161

Non-current liabilities
Retirement benefit liability

236,485

238,724

Provision for retirement benefits for directors (and otherofficers)

53,43045,425

Asset retirement obligations
Deferred tax liabilities

82,361
43,62082,656–

Other

164,163

164,163

Total non-current liabilities

580,061530,969

4,803,939

4,799,131

Share capital
Capital surplus

2,346,932
2,951,111

2,346,932
2,951,111

Retained earnings
Treasury shares

4,117,861(92)

4,247,019(92)

Total shareholders' equity

9,415,812

9,544,970

Total liabilities
Net assets
Shareholders' equity

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

156,646

136,195

Foreign currency translation adjustment(14,644)

5,474

Total accumulated other comprehensive income

142,002141,670

Total net assets
Total liabilities and net assets

49,557,814

9,686,640

14,361,754

14,485,772

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, 2021

March 31, 2022

Net sales
Cost of sales

6,686,295
4,777,030

7,056,080
5,273,572

Gross profit

1,909,265

1,782,507

Selling, general and administrative expenses

1,082,574

1,086,513

826,690695,993

Interest income
Dividend income

2,767
16,0003,175–

Other

3,4871,709

Total non-operating income

22,255

4,885

257
911

185
435

Foreign exchange losses
Other

2,001
56

2,788
32

Total non-operating expenses

3,228

3,441

Ordinary profit

845,717

697,437

Profit before income taxes

845,717

697,437

Income taxes - current

406,666

338,741

Income taxes - deferred(93,869)(86,545)

Total income taxes

312,796

252,195

Profit532,921445,241

Profit attributable to owners of parent

532,921445,241

Operating profit
Non-operating income

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

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

ProfitOther comprehensive income

Three months ended

Three months ended

March 31, 2021

March 31, 2022

532,921445,241

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

4,134
14,173(20,450)
20,118

Total other comprehensive income

18,307(331)

551,228444,909551,228444,909

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

6