Summary of Consolidated Financial Statements
for Third Quarter of Fiscal Year Ending March 31, 2020(Japan GAAP)
February 12, 2020
Listed Exchanges: TSE
Name of Listed Company: Ishihara Sangyo Kaisha, Ltd.
Code:4028
URL https://www.iskweb.co.jp/
Representative:(Title) Executive Director President (Name) Kenichi Tanaka
Contact:(Title) Director(Name) Yasunobu Kawazoe
Scheduled date of securities report submission: February 13, 2020
Scheduled date of dividend payment commencement: —Tel +81-6-6444-1850(Any amount less than one million yen is rounded down to the nearest million yen or nil.)1.

Consolidated Financial Results for Third Quarter of Fiscal Year Ended March 31,2020(April 1, 2019 to December 31, 2019)(1) Consolidated Operating Results
Net sales
millions of yen
70,68575,5803Q, 2019
3Q, 2018(Note) Comprehensive income:%-6.5-3.5(Percentages represent changes from same period in previous year.)
Operating income
Ordinary income
Net income
millions of yen% millions of yen%millions of yen%
-88.6
1,372 -76.6
661-1,231

41.0
5,859
9.9
5,805
4,278 57.9

as of December 31, 2019: -1,478 million yen (%),as of December 31, 2018: 3,952 million yen (19.8%)
Net income per share

Net income per share after full dilution

Yen-30.81107.06

3Q, 2019
3Q, 2018

Yen(2) Consolidated Financial Position
Total assets
millions of yen
3Q, 2019
165,821
Year ended March 31, 2019
168,689(Reference) Equity capital:

Net assets
Millions of yen
73.37375,335

Capital adequacy ratio
%
44.2
44.7

as of December 31, 2019: 73,373 million yen, as of March 31, 2019: 75,335 million yen

2. DividendsDividends per share
June 30(Q1-end)(Record date)

September 30(Q2-end)Yen
Year ended March 31, 2019Year ended March 31, 2020

December 31(Q3-end)

Yen
0.00





0.00



March 31
(Year-end)

Yen

Year ending March 31, 2020
(Forecast)

Annual

Yen
12.00

Yen
12.00

12.00

12.00

(Note) Modification in the dividend forecast for current quarter: No modification

3. Forecast for Consolidated Results for the Full Year Ending March 31, 2020 (April 1, 2019 - March 31, 2020)(Percentages represent forecasted changes from the previous year for the full year results, andforecasted changes from the same period in the previous year for the interim results.)

Net sales

Full year

Operating income

Ordinary income

Net income

Earnings per share

millionsof yen%millionsof yen%millionsof yen%millionsof yen%Yen

102,000

-4.2

5,500

-51.6

4,600

-58.7

2,300

-73.5

57.55

(Note) Modification in the dividend forecast for current quarter: Modified* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-1-4. Other information(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in consolidation scope): Yes(2) Adoption of simplified accounting treatment and special accounting treatment for quarterly consolidated statement: No(3) Changes in accounting principles, procedures, and the method of presentation
1) Changes due to revisions of accounting standards etc.
: Yes2) Changes other than those defined in 1) above: No3) Changes in accounting procedures: No4) Changes in the method of presentation: No(4) Issued shares (common shares)
1) Issued shares as of period-end (including repurchased treasury shares)
As of December 31, 2019: 40,383,943 shares
As of March 31, 2019: 40,383,943 shares
2) Number of shares of treasury stock as of period-end
As of December 31, 2019: 422,450shares
As of March 31, 2019: 418,453 shares
3) Average number of outstanding shares during period
3Q 2019: 39,963,671 shares
3Q 2018: 39,967,540 shares*Quarterly financial results are outside the scope of quarterly review.
*Notes on proper use of forecast and other matters
The forecast of financial results presented in this document is the result of management’s assessment based upon currently available assumptions,prospects and plans for the future. Actual results and dividend payments may differ from these forecasts, due to risks and uncertain factors, such as theglobal economy, competition, and foreign currency fluctuations.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-2-5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: millions of yen)Account Category

As of March 31, 2019
(summary)

As of December 31, 2019ASSETS
Current Assets
Cash and deposits

23,98322,870Notes and accounts receivable – trade
Merchandise and finished goods

33,89725,21624,97330,502Work in process

5,976

6,979

Raw materials and supplies
Other

15,5902,883

14,923
4,530

-468

-708

107,080

104,070

Machinery equipment, net
Others, net

17,70625,46017,73027,007

Total property, plant and equipment

43,16744,737

370

373

7,018
9,604

6,7548,740

Allowance for doubtful accounts
Total current assets
Noncurrent Assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset

1110

Other
Allowance for doubtful accounts

1,547
-110

1,217
-84

Total investments and other assets

18,071

16,639Total non-current assets
Total Assets

61,60961,750168,689

165,821(Unit: millions of yen)
* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-3-Account Category

As of March 31, 2019
(summary)

Notes and accounts payable – trade
Short-term loans payable

15,392
18,102

19,215Currents portion of bonds390

Income taxes payable
Provision

731
853

390
185

As of December 31, 2019

LIABILITIESCurrent Liabilities
17,460

133

Other

9,241

9,824

Total current liabilities

44,712

47,210

1,620

1,320
22,695

Noncurrent Liabilities
Bonds payable
Long-term loans payable
Provision for environment and safety improvement

25,697
2,877

Other provision150

2,08530712,952

Net defined benefit liability
Liabilities application from equity method

12,881
662

Other

4,752

5,283

Total non-current liabilities

48,642

45,23793,35492,447

Shareholder’s equity
Capital stock
Capital surplus

43,42010,62743,420Retained earnings
Treasury shares

23,419-722

Total shareholders’ equity

76,74475,028477

396

Total Liabilities
NET ASSETS

592

10,627
21,707-727

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

-1,443

Remeasurements of defined benefit plans-442

Total accumulated other comprehensive income
Total net assets
Total Liabilities and Net Assets* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-4--0-1,660-390-1,408-1,65575,33573,373

168,689

165,821

(2) Consolidated Statements of Income(Unit: millions of yen)
Q3 2018(April 1, 2018 toDecember 31, 2018)

Account Category

Q3 2019(April 1, 2019 toDecember 31, 2019)

Net sales
Cost of sales

75,58052,571

70,68551,944Gross profit

23,00918,741

Selling, general and administrative expenses

17,14917,369Operating income

5,859

1,372

Non-operating income
Interest income

3642

Dividend income

98

275

Share of profit entities accounted for using equity method58Foreign exchange income294Commission fee

96

Gain sales of raw materials
Other

83
136


79
155

Total non-operating income

804

552

Interest expenses

557

464

Share of loss of entities accounted for using equity method

111

Foreign exchange losses

312

Other


300

Total non-operating expenses

858

1,263

5,805

661

Gain on sale of non-current assets

181

Gain on insurance adjustment

34


189

Total extraordinary income

216

189

Loss on disposal of non-current assets

378

475

Loss on disaster

371



Loss on liquidation of subsidiaries and affiliates

334

Other



55

Non-operating expenses

Ordinary income

374

Extraordinary income

Extraordinary loss

Total extraordinary loss

750

864

5,272-13

Income taxes-current

767

314

Income taxes – deferred

225

903

Income(loss) before income taxes and minority interests

Total income taxes

993

1,217

Profit(loss)

4,278-1,231

Profit(loss) attributable to owners of parent

4,278-1,231* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-5-(Unit: millions of yen)
Q3 2018(April 1, 2018 toDecember 31, 2018)

Account Category
Profit(loss)

Q3 2019(April 1, 2019 to
December 31, 2019)

4,278-1,231-298-81

Other comprehensive income
Valuation difference on available for sale securities
Deferred gains or losses on hedges-0-0-116-264

Remeasurements of defined benefit plans, net of tax

5951

Share of other comprehensive income of entities accounted
for using equity method3047-326-246

3,952-1,478

3,952-1,478

Foreign currency translation adjustment

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-6-(3) Notes to Quarterly Consolidated Financial Statements(Note to events and conditions which indicate there could be substantial doubt about going concern assumption)
We do not note significant changes.

(Note to significant changes in shareholders' equity)
We do not note significant changes.

(Changes in significant subsidiaries during the third quarter under review)
ISK SINGAPORE PTE. LTD. which is a specific subsidiary of ISK resolved to dissolve at the company’s general meeting ofshareholders on December 23, 2019.
Therefore, ISK SINGAPORE PTE. LTD. is excluded from ISK consolidation since the third quarter consolidated accountingperiod.

(Changes in accounting policy)(Appling IFRS 16 Leases)
Some consolidated subsidiaries that applied IFRS have applied IFRS 16 since the beginning of the first quarter consolidated
accounting period.
Accordingly, the borrowers generally record all leases as assets and liabilities on the quarterly consolidated balance sheet.
The effect of the application of this accounting standard on quarterly consolidated financial statements is insignificant.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-7-6. Segment Information【Business Segment Information】
3Q of Fiscal Year Ended March 31, 2019 (April 1, 2018 to December 31, 2018)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Inorganic
Chemicals

Organic
Chemicals

Other
Businesses

41,60531,511

2,463





Total

41,605

Segment profit

5,632

Sales
(1) Sales to externalcustomers(2) Intersegment salesand transfers

Elimination/CorporateConsolidated

75,580

75,580

2,768

2,768

-2,768



31,511

5,231

78,349-2,76875,580

1,773

271

7,678

-1,818

5,859

Total

(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,818million) includes elimination of transaction between segments(￥6million) andcorporate expenses not allocated to reporting segments(-￥1,824million). Corporate expenses mainly comprise general
expenses not allocated segments.
(2) Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated income statement.
(2) Geographical information
Net Sales(Unit: millions of yen)Japan
34,984Asia
16,483

AmericaEurope

11,715

Other

12,156

Total
240

75,580(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.
2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses.
Countries and regions included in each geographic segment are follows, excluding Japan:(1) Asia: China, Taiwan, South Korea, Thailand, Indonesia, and Singapore(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico(3) Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions(4) Other: Australia, New Zealand and Africa(3) Information concerning impairment loss or goodwill on fixed assets by segment
We do not note significant changes.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-8-

【Business Segment Information】
3Q of Fiscal Year Ended March 31, 2020(April 1, 2019 to December31, 2019)(1)Information relating sales, profits, losses, for each reporting unit
(Unit: millions of yen)
Adjustment

Amount reported on
consolidated financial
statements

70,685



70,6852,914

2,914-2,914

30,2805,454

73,600-2,91470,685

789

330

3,114

-1,741

1,372

Inorganic
Chemicals

Organic
Chemicals

OtherBusinesses

37,86530,2802,539(2) Intersegment sales
and transfers





Total

37,865

Segment profit

1,993

Sales
(1) Sales to externalcustomers

Total(Note) 1. Adjustment include the following items(1) Adjustment in segment profit (-￥1,741 million) includes elimination of transaction between segments(￥15 million)
and corporate expenses not allocated to reporting segments(-￥1,757 million). Corporate expenses mainly comprise
general expenses not allocated segments.
(2) Segment profit is adjusted to be consistent with operating income shown on the quarterly consolidated incomestatement.

(2)Geographical information
Net Sales(Unit: millions of yen)Japan
33,864

Asia

America
13,936

Europe11,270Other

11,511

Total
102

70,685(Note) 1. Net sales by geographic segment are based on nations or regions where customers reside.
2. Grouping of countries and regions is based on the geographic proximity and relevance of businesses.
Countries and regions included in each geographic segment are follows, excluding Japan:(1) Asia: China, Taiwan, South Korea, Thailand, Indonesia, Singapore, and India(2) Americas : United States of America, Canada, Brazil, Argentina, and Mexico(3) Europe : Germany, Netherlands, France, the United Kingdom, Belgium, Italy, and East Europe and Middle East regions(4) Other: Australia, New Zealand and Africa(3) Information concerning impairment loss or goodwill on noncurrent assets by segment
We do not note any significant changes.

* This is an English translation of Summary originally written in Japanese and disclosed to TSE.
For official purposes, the Japanese version takes preference over this English translation-9-